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Many employees have a workplace pension, and around one in five of them * has a support need of some kind.
Health, such as serious illness, is the most common vulnerability driver* according to what our customers and members have disclosed. This is followed by a life event, which could be a bereavement, job loss, or an income shock.
Thirdly, they may have challenges managing their finances in an increasingly digital world – putting them at a disadvantage, especially with the imminent arrival of pensions dashboards.
Cost of living pressures still affect many people, too.
The reality is that any vulnerability can have a profound effect on people’s finances now, and in the future. Support for vulnerable members is clearly the right thing to do so that more people are able to look forward to a comfortable retirement.
Partnership approach
At Scottish Widows we’ve got a well-established customer vulnerability strategy in place to offer support. However, we want to raise awareness of what’s available, and do more where we can. We know it’s an area where employers are looking for more support and information for their employees too.
It’s our partnerships which really help to make a difference. We work with experts who can provide direct support, as well as partners who help and advise us on ways to continuously improve the support we provide.
Citizens Advice support
We’ve just made our 1,500th Scottish Widows member referral to Citizens Advice, which we’ve partnered with for several years to help workplace pension members access grants, benefits, and advice.
When referred through Scottish Widows, members can request a call back within 48 hours, and get a full financial assessment by a dedicated member of the Citizens Advice team.
Surviving Economic Abuse and Women’s Aid
Then there’s the work we’re doing to support members who experience domestic and, or, economic abuse alongside the Surviving Economic Abuse (SEA) and Women’s Aid charities.
It’s an incredibly sensitive area but a relatively common one, with two in five adults in the UK experiencing some form of economic or financial abuse during their lifetime.
Our vulnerability representatives within customer operations have been on a two-day training course with SEA so they can recognise the signs of domestic or economic abuse and have the right skills to help.
Being part of Lloyds Banking Group, we have access to a lot of behavioural MI and insight which would help indicate to us if someone is potentially a victim of domestic and economic abuse, and that supports us in opening up conversations with them.
If we identify that a someone is a victim of economic abuse, we can – with their consent – record that on our system and signpost them to support available through our charity partners, depending on their needs. We can also look at how we could put protection on their policies or communicate with them in a safe, secure way.
It’s so important we do all we can to get it right, especially as people are still more likely to tell their financial services provider that they’re experiencing abuse rather than the authorities.
Three Hands
We are currently working with Three Hands, an organisation that has been gathering insight on our behalf with groups of people with a range of vulnerabilities across the accumulation and drawdown stages of their pension journey.
The research includes insights from those with neurodivergences, sight and hearing impediments, low financial resilience, people who have been through bereavement, are going through the menopause, or are living with cancer, to name a few.
It’s about really understanding what the pension saving experience is like for them, right through to when they take their pension benefits. What challenges do they face? What barriers do they have, and how do they interact with us through our digital and other channels?
We’re really proud to be challenging ourselves through this work, based on real customer insights to shape how we can improve things.
What can employers do to support members?
There’s a lot of help out there, so let’s make all pension members aware of any support that is available from their provider.
- Scottish Widows customer operations teams are trained to support members who get in touch, and to open up sensitive conversations about vulnerability and abuse where they suspect it.
- BeMoneyWell has tools and guidance for pension members who need support, including Macmillan Cancer Support to help those affected by cancer, either directly or indirectly, and ways to build digital skills, money management, and manage life’s big moments.
- Listen to Scottish Widows’ June 2024 podcast on customer vulnerability; its brand-new digital inclusion podcast discusses ways to help people build their digital skills and support for those with sight challenges.
Sources:
*/**Based on LBG-wide data, April 2025
