3 reasons why member engagement is more important now than ever before
03 Dec 2018
Over the past decade or so, pension schemes have rightly been focusing on funding and investment strategy. As a result, many schemes are now in a stronger and more resilient financial position. But has member engagement been neglected as a result? Here are 3 reasons why engaging your members is more important now than ever.
1. The pensions landscape isn’t what it used to be
The pensions landscape has changed dramatically over the last decade. The new complex world now includes the pension protection fund, the pension freedoms and game-changing innovations in the consolidation and risk transfer market. These developments can be confusing and worrying for members and that’s assuming they even know about them! Members need to be engaged in a way that helps them understand these developments and why it matters to them.
2. The regulatory spotlight is on
The changing landscape has caused increasing regulatory pressure on trustees and sponsors to protect members from making poor choices. Faced with choices they never expected to have to make, members may feel ill equipped to navigate the post Freedom and Choice world. Increasing interest from the Pensions Regulator, Department for Work and Pensions and Financial Conduct Authority has put the spotlight on those schemes which are failing in their duty to support their members on their journey to, and through, retirement. Just bombarding people with information at the point of retirement isn’t good enough and no trustees or sponsors want to run the risk of members coming back to blame them for not fully informing them of their choices.
3. We’re in the new digital age
The way people consume information is also changing. We’re now in the digital age, where most things are done online (shopping, banking, communicating with loved ones) so why should retirement be any different? The “new old” will increasingly be comfortable with accessing and engaging with information online rather than paper-based communications, so it’s important that your engagement strategy keeps up with these continuous changes.
As we can see, there is a strong case for now putting member engagement at the core of your overall pensions strategy. Doing so will provide better outcomes for all parties.
Look out for our paper launching in January which will outline these insights in more detail, including hints and tips about what a good engagement strategy looks like from communication and engagement specialists, like minds.
In the meantime, if you have any questions about anything mentioned above please don’t hesitate to get in touch.