L&G retirement planner drives higher DC member engagement, data reveals

Legal & General (L&G) has published new data on the first year of its Guided Retirement Planner, showing increased engagement among Defined Contribution (DC) pension members and evidence that some users are taking practical steps towards retirement planning.

Around 20% of members aged 55 and over have started using the Planner since its launch 12 months ago.

L&G introduced the tool ahead of the Financial Conduct Authority’s (FCA’s) Targeted Support framework, with the aim of helping members better understand their retirement options without moving into regulated advice.

The Planner uses member data and behavioural insights to adapt content based on user inputs. It breaks retirement decisions into stages and provides prompts designed to reflect individual circumstances.

L&G said this approach allows schemes and employers to gain a clearer picture of how members interact with their retirement choices, beyond contribution levels alone.

According to the latest data, members who adjusted their plans using the Planner were less likely to be facing a projected retirement income shortfall, with L&G reporting a reduction of around 50% among this group.

Of those engaging with the tool, roughly two thirds are currently building a retirement plan, around one third have completed a plan, and approximately 20% have taken actions such as consolidating pension pots, entering drawdown or purchasing an annuity.

L&G has also expanded access to the Planner to younger DC members.