There has been a revolution in how we buy and consume literally everything. Its no surprise that people now have high expectations about their digital journey and online interaction in everything they do. We should aspire as an industry for a time when people find that engaging with their pension online is just as easy and compelling as when they go online to find a holiday or buy a Tesla – now that would be something! That may be a way off, but right now, are we making things as easy as they should be for members, and should we rely on technology as a ‘one size fits all approach’ to providing and enhancing member service?
As we are all too well aware, despite pension freedoms and the advent of auto enrolment, there is generally an ongoing lack of engagement with retirement planning in this country. This is worrying as there is a shift towards people increasingly having to take responsibility themselves, but the message never quite seems to land until its often too late. We should be embracing this fourth industrial revolution taking place, and find ways to increase engagement by putting the advances in technology to the very best use for members. The question is, do pension schemes and employers have the time, money and inclination to find and invest in the right technology?
In recent years, most Trustees have looked to their pension provider to offer some form of member on-line portal. While they may be looking for the best, technologically future-proofed product out there for members, restrictions on cost - especially in current times with large industry wide projects such as GMP equalisation ongoing, means that compromises are likely to be made.
There can also sometimes be a perceived lack of demand from Trustees to provide such technology to members or only to provide to a particular category of membership ‘to keep costs down’, for instance actively employed members, but not deferred members. There also sometimes seems to be an assumption that the UK ageing population are less likely to use online services.
Times, as they say, however, are a changing. The Pension Schemes Bill and the introduction of the Pensions Dashboard together with the up and coming ‘next generation’ who are used to online services, from banking to doing their weekly shopping – will expect to be able to manage every aspect of their pensions online. This is fantastic but something of a juxtaposition for the industry - on the one hand we have an ageing population that is perhaps less able online but more engaged with their retirement, versus the younger generation who have grown up in a digital world but lack engagement with retirement planning. How can we ensure we make everyone engaged and happy and ultimately have the best outcome?
As we are aware the TPR are driving Trustees to ensure that scheme members are receiving value for money, that value for members does not necessarily equate to ‘low cost’ but includes that services received are of good quality and meeting the needs of their membership. Technology is a fantastic way of ensuring members receive value for money, but it needs to be used and targeted in the right way. Heavy investment into cutting edge web designed portals with all the bells and whistles – real time fund value, projection tools, retirement calculators, can be hugely impactful but also easily wasted if not delivered and signposted in a way that is aligned to different member needs. Technology simply cannot be a one size fits all approach, much like many other forms of communication and interaction both online and off. Simple things like dedicated mailboxes , email addresses and helplines for members to actually talk to somebody can make the world of difference.
Do I think the way forward for retirement planning is by making best use of the advances in technology? Without a doubt! And of course, it may be that we do need to wait for that ‘next generation’ to fully embrace and take advantage of some of the really smart, cutting-edge things we are starting to see come through for pensions. Regardless, key to the success of what benefits technology can bring to members will be keeping it personal.
Julie Yates
Head of Pensions Administration
Cartwright
