Why engagement is the best form of defence
Protecting DB pensions
06 Apr 2021
There are still over 5 million DB members who aren’t being paid their pension yet and around £1 trillion of assets held to back their benefits. That’s a lot of people and a lot of money. How well equipped are those people to decide what to do with that money, now that they have more options available to them and are maybe faced with choices they never expected to make?
And the survey says...
In a recent survey of DB members aged 55 and over:
- More than a third approaching or in retirement don’t feel knowledgeable about their DB pension arrangement.
- Only 27% are ‘very confident’ when it comes to making decisions about retirement – one of the biggest financial decisions of their lives.
This combination of large sums of money (transfer values remain close to all-time highs) and a lack of knowledge and confidence makes the DB market highly attractive to scammers.
When you add to that the impact of COVID-19 and some people potentially needing to access money quickly – DB savings could find themselves firmly in the firing line. As a result, trustees and sponsors need to review how well equipped their DB engagement and support strategy is to protect members’ best interests.
Read our paper for insights on:
- COVID-19 and the rise of scamming
- Are DB members a vulnerable group?
- The digital deficit
- What DB plans need to do
- An engagement and support checklist