From the blog: There are not many people who really want to talk pensions at a barbecue.
A couple of weeks ago my wife and I hosted a barbecue. A few people I had not met before came, and so the question of what we all did for a living came up.
This prompted a couple of pension questions quickly followed by a subtle move onto another subject – it wasn’t the time or place.
A couple of weeks ago my wife and I hosted a barbecue. A few people I had not met before came, and so the question of what we all did for a living came up.
This prompted a couple of pension questions quickly followed by a subtle move onto another subject – it wasn’t the time or place.
The situation made me think: if a pension was somebody at a barbecue he may find that not many people really want to get into a deep conversation with him.
Source: Capita
For a start, Mr Pension uses language that makes no sense to many of us, but will still look at you oddly when your expression goes vacant. It would take him a long time to make his point and he will have to throw in a lot of caveats as he makes it.
The problem with this is that Mr Pension is actually pretty important, even if he feels so far removed from our day-to-day living. But he has an intimidating stare and tuts like he’s judging us. He’s just a bit too serious.
At this particular party I’m either overly attentive on manning the barbecue or I’m making side glances to somebody else (anybody else!) to come and rescue me…
The problem is that for many, pensions are still intangible – 'It’s something I’ll need in the future so I’ll think about it in the future.'
Auto-enrolment
Auto-enrolment gave pensions a new opportunity to reconnect with people and tell them they need to make the most of them.
Before any of us start talking about pensions, at a barbecue or anywhere else, we might want to follow these guidelines:
Talk to people in a language they understand. 50% of employees find pensions terminology to be complicated and confusing.
Be clearer about what people should be doing. 52% of employees simply do not know how much they should save.
Be more engaging. 61% of employees in a DC scheme have no idea where their pension is invested.
Rebuild trust and improve transparency. A worrying 43% of employees say they do not trust the pensions industry.
Explain clearly why it’s so important to start saving early. 51% of 16-34 year olds believe retirement is too far off to worry about; plus 40% of employees do not want to remind themselves about how little they’ll live on.
If Mr Pension truly wants to connect with people he should start thinking less about himself and more about his audience. It’s a golden opportunity to shine. He may even be invited to barbecues if he promises to relax a little and talk to people, not at them.
Gareth Davies is research manager at Capita Employee Benefits
*Figures quoted from the Employee Insight Report 2015 from Capita Employee Benefits
