Effective pension engagement requires personalised, user-friendly communication and tools that help employees understand their full retirement picture rather than relying on generic messaging.
Speaking at a panel at the Benefits Expert Summit, Scottish Widows workplace savings engagement and innovation specialist Robert Cochran, Costain head of pensions & benefits Rosie Lacey and independent pensions professional Richard Smith discussed how employers can improve engagement.
Cochran explained that employees often struggle to understand their pensions, and engagement varies by demographic. He said: “If you address people’s needs, whether they’re segments, then I think things can become much more accessible.”
Smith highlighted that understanding is uneven across age, career stage, and experience, noting that dashboards often reach only a small, engaged group.
He noted: “Mid-career employees are less interested in total retirement income and more focused on what they need to do now. If you address the needs of different segments, pensions become far more accessible and engaging.”
Lacey emphasised the role of employers in reducing anxiety and making pensions approachable, framing them as a simple “savings vehicle” to encourage engagement.
“We need to concentrate on reducing tension. It’s down to us as the employer and our providers to try and find a way of engaging with people.”
Smith warned that pension dashboards offer transparency, but adoption is still early and employees may be surprised by gaps. He also stressed that contribution processes must be simple and low friction, allowing employees to act quickly when motivated by dashboards or communications.
Cochran highlighted that personalised AI avatars and apps can make pensions more engaging, turning abstract numbers into meaningful insights and boosting participation.
Smith added that holistic pension views help mid-career employees see how new contributions interact with existing pots.
He said: “All of the continental dashboards I saw have settled on showing one data point: total estimated retirement monthly income. But most people want to see what they might be able to get per month during the accumulation phase.”
Lacey highlighted that peer influence and automatic enrolment drive participation, with social nudges and reminders encouraging employees to optimise contributions even when interest is low.
Smith added that connected dashboards and AI will allow employees to view all pensions in one place, track goals and receive personalised guidance.
He said: “With dashboard connections, the data is there. It will help me create goals for my life savings and goals from retirement.”
