Five steps for building a reform engagement strategy

It is reasonable to assume that those closest to taking their retirement savings – especially those due to retire in 2015 – are pretty well attuned to attention-grabbing headlines such as ‘How 2015 could bring a £300-a-year pension boost’ (The Telegraph, December 31 2014).

The way the near-retiree may have engaged with those headlines is something of which we need to be conscious.

It is easy for those of us in the know to be dismissive. Saying, ‘We can’t really say anything because we don’t yet know how we’re going to deal with this or what products will be available by April’ is not helpful to a member considering their impending retirement.

What they may know is the government has promised them more freedom and flexibility including options to take their pensions as cash, tax paid; their cash-free 25 per cent in several tranches; options to draw down; and convert defined benefit to defined contribution pots – and that’s before we even get to the guidance guarantee. We need to ask ourselves what would be helpful to the member, because they do need help.

Segment messages by audience so that everyone clearly understands if they are impacted and what they need to do as a result

Evidence points to the effectiveness of modelling tools in engaging the member with potential pensions outcomes.

Being aware of the simple relationship between the pre-retirement levers members can pull is empowering – understanding the combined effect of contributing more, retiring earlier or later and investment returns is a good first step in planning the retirement pot target.

But what about when that target is reached come D-day?

Modelling tools for this stage have been found to be equally useful in those parts of the world where greater choice already exists.

Using these tools enables members to see the post-retirement levers available to them – the relationship between investment return, longevity and lifestyle outcomes.

Surely improved lifestyle outcomes in retirement is the thing we should be focusing on as we enter 2015?

We can help members make a real difference to the lives they lead in retirement – and we need to focus all our efforts on doing just that.

So what does a reform communication strategy look like?

The fundamental principles of a robust communication strategy still apply:

• Understand your audience. In particular, with reform you will need to identify those most immediately impacted and who are in the greatest need of help.

• Segment messages by audience so that everyone clearly understands if they are impacted and what they need to do as a result.

• Consider the most appropriate media for your audiences.

• Give members access to planning tools that allow them to play with their options and take appropriate action.

• Set measurable objectives and put things in place to enable you to report against them – what gets measured gets done.

Importantly, we need to remember that it is not just about April 2015. This is the start of a changed way of thinking, not an event in itself.

More products will become available, but what about clarity for the member?

You will need to plan an engagement strategy that goes beyond April. Engaging members becomes more important than ever, and we all need to find a way of doing it effectively.

Karen Partridge is head of client services, UK and Australia, at AHC