Using GO targets to improve member engagement
10 Oct 2019
Nationwide is the world’s largest building society and the UK’s second-largest mortgage provider, with over 15 million customers and members, served by over 18,500 employees. A comprehensive review of its pension arrangements helped Nationwide to realise that its DC schemes were being underused, with low member engagement. Working together Nationwide we introduced a member engagement campaign with Guided Outcomes (GOTM) and targets at its core.
Scheme member analysis
The first step of the campaign was to carry out a member-by-member GO assessment, which showed members were not paying enough into their pensions. 600 of the 12,000 eligible workforce were making no contribution at all and just 8% of members taking advantage of maximum contributions on offer. We helped Nationwide to review the DC contribution structure using GO scenario analysis modelling, to understand the impact of changes to both the core contribution structure and to the default contribution rate.
As a result of the analysis, Nationwide changed the contribution default so members automatically started paying the maximum matching contribution. The result of this process was that the scheme went from having just 8% of members paying the maximum to 80% paying the maximum.
On the 17th October, the PLSA announced their retirement living standards. In our short video below, Mike Ambery chats through our support of targets at retirement.