Railpen chief officer for benefits Paul Sturgess explains how member communication has evolved and how education, collaboration and technology are now integral parts of pensions admin.
There is an increasing focus on consumer freedom, with more choices of pension options and services available — from products and investment funds through to how members can access their money.
At the same time, people consume information in different ways to previous generations, changing the dynamic for providers as they seek to maintain high engagement with their membership.
To achieve the best outcomes for their pensions, members need to be empowered to make the best possible decisions to secure their futures.
Helping members make informed choices begins with support in understanding the value of their pensions, and the options available to them
This means understanding the range of options available, having access to easy-to-use tools to facilitate decision-making and receiving the right level of information and communication from their scheme, through the channels most appropriate for them.
Collectively, UK pension schemes represent millions of members, each with unique needs and financial outlooks. Collaboration is key to schemes understanding these needs and delivering on their mandates — working closely with their members to identify what they want, how they need it and when.
Working in partnership builds trust and allows schemes to focus on innovating in ways that will be most beneficial for their members over the long term.
Empowering members through education
Member needs should be at the heart of everything schemes do. Helping members make informed choices begins with support in understanding the value of their pensions and the options available to them.
With many distractions in our modern, fast-paced society, competition for members’ time is high and we need to work harder to captivate attention, engage and support.
To achieve this effectively, schemes need to understand what matters most to their members: their current level of interest and understanding; the challenges they face; motivators; and how they prefer to interact. Combining research, insights and feedback with data helps schemes define the support they need to offer.
We are consuming more information than ever, with the average Brit spending four hours a day online. To cut through the noise, create impact and have meaningful engagement, offering information in a variety of formats, across a multitude of platforms to suit individuals, is key.
By offering layered messaging in a multi-channel, multi-format approach, schemes can keep their messages relevant, support members at their points of need and have much greater educational impact.
Rethinking communications material
In a jargon-heavy industry, it is easy to become wrapped up in the intricacies of pensions and lose sight of member wants and needs.
To make pensions more accessible, we have significantly improved the language in member communications by defining a set of standards, now used consistently in all member-facing material, digital or print.
Removing complexity and jargon and presenting information through a member lens was a fundamental step to ensure communications are clear and enable members to make decisions with confidence.
Developing good communications is evolutionary: testing, adapting and refining content with a subset of members before wider launch, not only to help create effective communications, but nurturing a two-way relationship of trust and care with members.
Innovation in technology driving engagement
Technology has an increasingly prominent role in empowering members to make informed decisions, yet historically the industry has not matched the rate of change we have seen in wider society.
We are witnessing an increasing demand for digital tools from members as they look to engage with their pensions in more dynamic ways, a trend that was only accelerated by the pandemic.
Innovation in online tools and platforms facilitates member empowerment — with self-service information accessed at their own pace, creating efficiencies for schemes. Greater integration of online tools boosts the data and insights schemes can gather too.
It is an effective way to measure customer satisfaction and performance, helping to identify the most valuable changes. A recent independent customer satisfaction survey found direct correlation with improved online tools and increased overall customer satisfaction results — up to 84.4 per cent in 2022 from 80.8 per cent in 2021.
While technology is a key enabler for better outcomes, it is not the solution alone. Maintaining a balance between delivering high-quality communications and technology while continuing to offer a caring, human interaction, is key.
Paul Sturgess is chief officer for benefits at Railpen
