IFAs call on pension providers to innovate to engage younger generations

Independent financial advisers (IFAs) have called on pension providers to adapt how they engage with younger generations and support members across the entirety of their retirement journeys, according to People's Pension.

Almost three quarters (74 per cent) of IFAs said defined contribution (DC) pension providers needed to innovate to engage younger savers, which People’s Pension said reflected growing concern that traditional approaches may not fully connect with those at the beginning of their savings journey.

This challenge extended past initial engagement, with 63 per cent of advisers arguing that providers should do more to help members make informed decisions earlier.

Over half (51 per cent) of IFAs believed providers should play a more active role in supporting members with managing their money once they retire.

When asked what DC pensions should offer, advisers emphasised the need for practical, accessible tools that support better decision making.

The most commonly cited priorities included digital member platforms (41 per cent), improved data and reporting (39 per cent), integrated retirement and decumulation tools (38 per cent), and more personalised communications (34 per cent).

People’s Pension urged the sector to move beyond traditional communication approaches and adopt new ways of engaging members earlier in their journey, including reaching audiences in more relevant, everyday contexts and making pensions easier to understand and act on.

“What this research shows is that expectations are continuing to evolve,” commented People’s Pension distribution director, Stuart Reid.

“Advisers want to see support start earlier in the savings journey and continue through retirement, alongside practical tools and reliable service that help members make informed decisions at each stage.

“This is very much in line with what we are seeing in our recent webinar series, Pension Talk. Whilst in the past younger employees were often less likely to participate in pension discussions, as they felt the core questions were more relevant to colleagues nearing retirement, that is now changing.

“We are seeing much stronger interaction and participation from younger employees, along with a growing understanding of the importance of getting started early. That will have a meaningful impact on their long-term outcomes, and it is encouraging to see.”

This article originally appeared in our sister publication Pensions Age.

---