Dashboards Dashboards: Connecting The Pots – Pension, superannuation and pensions

For the first time, members will have information about all their pension savings, including the State Pension, in one place. Dashboards Dashboards will be a catalyst for change in the pensions industry. You are ready?

At WTW, we believe that a key part of effective and successful pension panels is to ensure that they form part of an engagement and education framework. For pension administrators and sponsoring employers, there are benefits to a powerful Dashboard framework and risks associated with a poor one. Here we share our views on how to do it right. We need to enter this new era of pensions transparency and recognize the challenges of the level of pensions understanding and financial literacy in the UK and provide the support that individuals need.

Research by the Association of British Insurers (ABI) shows that 4 in 5 of the British public think pensions are an important part of people’s finances, but half struggle to find information about their pensions. Dashboards Dashboards clearly have the potential to provide personalized education, engagement and accessibility to address this issue. In addition, Dashboards Dashboards also provide schemes with the ability to connect to a much wider group of members than ever before.

Creating a thoughtful and connected experience for pension scheme members will be key to maximizing wider benefits such as driving digital self-service or supporting risk reduction objectives.

Let’s talk about data

ABI research states that “there is a strong expectation for dashboards to be complete and up-to-date” and “while consumers prefer completeness in theory, in practice they do not want it to come at the expense of errors.” So what does this mean for members?

Partial matches. If the data a member enters does not match what the provider has, it will generate frustration (for members and administrators). Administration teams help clients consider ways to minimize this, but it is still a very real risk for a large group of savers.

Inconsistent pension values. Some providers aim to update data on Pensions Dashboards annually, resulting in the potential for inconsistencies in the values ​​shown in system communications (such as retirement offers or member portals). This could be further amplified in periods of financial turbulence.

But what does a member do when they are confused or the information is unclear? Dashboards Dashboards will provide system specific website links for the member to learn more about their confirmed and prospective systems. For those who join via, schemes will need to be in place to sort members, answer questions and provide support.

What will pension scheme participants want to know?

Our consumer research shows three consistent themes that define member expectations:

  • Relevance: Members want to know what the values ​​they see mean to them without having to search for answers.

  • Action: Members want to understand what they can (and must) do next.

  • Assurance: Members want to feel in control and trust the information provided – and they appreciate it being up-to-date.

Once connected, we expect scheme members to be hungry to research their pension values, projections and retirement options. They will want to understand how this information can help with overall financial planning. The bar is high.

But what makes a good Dashboard experience?

Every sponsor and trustee has the ability to empower individuals to make supported and informed decisions about their retirement savings. A comprehensive approach to helping members can lead to a positive Dashboards Dashboards experience as well as increasing the value members get from their savings. Administrators and sponsors are unlikely to influence the way members use the Dashboard, but they can influence the information shared with the Dashboard and supporting information from their pension plan.

Strengthening the “thrust”. Each program and membership is unique, so it will be important for sponsors to consider which engagement solutions are right for their employees, such as retirement savings education, retirement decision support and financial wellness education.

Deferred members are another large population that will benefit from Dashboards. When deciding which framework to put in place, administrators should consider this in the context of the wider objectives of the system. Read our article Pension overview:
Accelerating your superannuation strategy For more information.

And ‘push’. Nudges have and will play a very large role in driving member engagement. We know that making information accessible and easy through regular updates and reminders leads to positive action.

We’re getting started

Given the importance of having data ready for the join date, it may seem too early to think about member experiences.

Target any change requires preparation; your members must be prepared for this era of greater transparency and information. The following building blocks (Figure 1 below) give you a framework to get started.








Now

  1. Warm up the members

  2. Bring digital convenience to members (where appropriate)

  3. Focus on data completeness

  4. Target key groups of members

  5. Review communications strategy and objectives to align with dashboards, bearing in mind wider scheme objectives and member journeys

  6. View online transaction capabilities

  7. Support members with key processes and transactions through “how-to” education.

  8. Educate members about the risk of pension fraud

  9. Consider an overall financial wellness strategy

Before the panels are launched

  1. Define the member sorting process

  2. Prepare and answer the expected questions

  3. Ensure that the schema-specific environment and control panel are consistent

  4. Ensure availability of retirement support

  5. Implement a measurement approach

Ongoing

  1. Measure and learn from experience

  2. Implement new communication strategy for post Dashboards Dashboards

  3. Encourage members – remind them to remember

  4. Consider how to maximize the use of numbers generated for Dashboards eg on member portals/statements


Figure 1. Strategy setting and changing priorities

01

Know your membership

You have a wealth of member information at your fingertips: demographics and behavior. How can they be used?

How can you help members have a better experience from the moment they sign up? Are your priority members with multiple terms of service? Do you have many deferred members past normal retirement age who would benefit from a wake-up call before Dashboards Dashboards are available?

02

Meet your membership where they are

What questions will your members have after they join the pension panel? Will they be able to easily find what they need online (regardless of the circumstances)? Are there any gaps in your retirement support and/or modeling ability that would be useful to address now?

MPs may be tempted to consider consolidating their pensions. Will they know how to do it and is today an opportunity to think about it?

What about the unattainable, the disinterested, the vulnerable? How will you consider the different needs of members when defining your dashboard experience and designing member journeys? How do you protect members from the risk of fraud?

03

Engage, activate and empower

Frequent communication builds trust and knowledge is power. There is much we can say to members. How can we help them understand what Dashboards Dashboards will and won’t do, as well as prepare them for how they work?

How well do members know their retirement savings? Should you bring more members online earlier to familiarize yourself with what the system has to offer today?

Want to talk about things?

There is a lot to think about. A well thought out member’s journey can have a significant impact on the retirement an individual can achieve. We are happy to share our approach and latest thoughts.

The content of this article is intended to provide a general guide to the issue. Professional advice should be sought regarding your particular situation.

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