Schemes and providers team up to push pensions engagement

The Association of British Insurers and the Pensions and Lifetime Savings Association have launched an industry campaign to boost people’s understanding and engagement with their pensions.

The campaign, which aims to help more than 30mn pension savers, is set to run in autumn and winter this year.

The two industry bodies said they want to help people understand the basics of pensions and, as it evolves, savers will be able to see the campaign in different places, such as on social media and in a variety of digital and written communications from their pension schemes.

The campaign will share tips on how individuals can identify who their pension providers are, make sure contact details are up-to-date and check how much has been saved towards retirement. It will also help people prepare for pensions dashboards, which will show savers all of their pension pots in one place. 

Yvonne Braun, ABI’s director of long-term savings policy, said: “We know that seven out of 10 people find pensions overly complex and difficult to understand. This needs to change, fast. 

“Uniting pension providers and schemes around an engagement season focused on pension basics could have a real impact on people’s understanding of the importance of their pensions and prepare the ground for pensions dashboards. It will also complement the government’s drive to increase engagement, which we wholeheartedly support.”

Providers and schemes are supporting the campaign with a collective investment of at least £1mn for its organisation over the next three years, the PLSA and ABI stated.

This action will reach savers who are in auto-enrolment schemes, defined benefit pensions, self-invested personal pensions, and those who have started withdrawing money from their pension, while it will complement the work being developed by the Department for Work and Pensions, the bodies added.

Nigel Peaple, PLSA's director of policy and advocacy, said: “We have seen from the level of engagement with our retirement living standards and the national conversation it started that savers want simple, jargon-free information to help them get their pension savings working for them.

“By committing all corners of the pensions industry to pull together on a concentrated engagement campaign — and with the support of the DWP — we have the potential to move the dial in helping savers understand their pensions so that more people have a better income in retirement.”

Research by the ABI and PLSA found that only 20 per cent of people are confident they are saving enough for retirement, and without any action to save more, millions of people risk not having enough money to meet their needs, they noted.

The resources of the campaign will be made freely available to use by all those who wish to participate across the pensions industry, including employers, regulators and government departments. 

Guy Opperman, pensions minister, said: “Engagement season will complement the crucial work already under way on pensions dashboards and simpler statements, helping savers get to grips with their pensions and bringing retirement saving into everyday conversation.

“I warmly welcome this campaign from the ABI and PLSA and look forward to working together — and with other industry partners — to help bring about a step change in how the record number of Brits now saving for retirement engage with their pension.”

The companies acting as sponsors for the campaign are Aviva, Standard Life — part of Phoenix Group, Royal London, Scottish Widows, Fidelity, Legal & General, Nest, Pru — part of M&G group, Smart Pension, The People’s Pension, and Now Pensions.

Supporting the campaign are Hargreaves Lansdown, Railpen, the Universities Superannuation Scheme and Just. 

This article originally appeared on FTAdviser.com