New research shows face-to-face communication is the most trusted delivery method, while online is the least trusted.
Trafalgar House Trust’s latest Trust & Confidence Index – a survey of 2,000 people conducted at the end of last year – found that clear communication was the most important element for building trust in pensions.
This was selected by 16.5% of respondents, up from 11.7% who selected it in the 2022 edition of the research.
The findings were published this week by the specialist third-party pensions administrator as part of the second batch of results from its annual Trust & Confidence Index.
Trafalgar House found that 39.5% of people cited face-to-face communication as their most trusted method, but pointed out that, outside of financial advice, this delivery method with pension providers was “relatively rare”.
In addition, online communications had the highest level of mistrust among respondents, with 12.4% saying they did not trust this delivery method.
Karla Bradstock, technical and communications manager at Trafalgar House, said interactions and communications around pensions were “a grey area”.
“For some, interacting with their pension simply means opening and reading their annual benefit statement, while for others it could mean changing investment strategies or planning their retirement,” she said.
“Whatever the purpose, it’s essential that they have a positive experience to maintain trust and engagement.
“What’s clear is positive perceptions of pensions are chiefly driven by the necessity for straightforward communication and comprehension – this will drive engagement and, ultimately, better member outcomes.”
Bradstock added that “instant accessibility” to information in other areas, such as banking or shopping, meant that the pensions industry needed to take “prompt action” to catch up and help people make decisions easier and faster.
Trafalgar House also found that media coverage had a particularly negative influence on respondents’ behaviour. The survey found that it was the biggest negative impact cited by respondents at 35.4% – although this was down by five percentage points on the 2022 survey.
Further reading
PLSA: What savers really think about their investments (8 April 2024)
