Jessica O'ConnorPension providers may need to rethink how they engage younger savers and support members throughout retirement, according to research from People’s Pension.
The study found that nearly three quarters (74%) of independent financial advisers (IFAs) believe defined contribution (DC) providers need new approaches to connect with younger generations, reflecting concerns that traditional engagement methods are falling short.
This need for change extends beyond early engagement.
Almost two thirds (63%) of advisers said providers should offer support earlier in the savings journey to help individuals make better long-term retirement decisions.
Expectations also continue into retirement, with over half (51%) of IFAs saying providers should take a more active role in helping members manage their finances once they begin drawing an income.
Advisers also highlighted the importance of practical tools to support decision-making, including improved digital member platforms (41%), better data and reporting (39%), and integrated retirement and decumulation tools (38%).
More personalised communication was also identified as a priority by 34% of respondents.
Service quality remains a key concern, with 51% of advisers warning that poor administration and service are major drivers of switching between providers.
The findings come as People’s Pension calls on the industry to move beyond traditional communications and adopt more accessible, relevant ways of engaging savers earlier in their working lives.
Stuart Reid, distribution director at People’s Pension, said: “What this research shows is that expectations are continuing to evolve. 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.”
