Pension schemes and scheme members have a common metric of success—members retiring with enough money to live comfortably. To some extent, achieving this goal sits with the members. They decide how much they save, how often, and how that money is invested. Plus, it is in their best interest. So why isn’t it happening? And why is there a seeming lack of urgency on the part of these investors?
Few would disagree that the historic one-way push of information using traditional channels, with little-to-no personalization, isn’t moving the dial. While member communication might once have been driven by regulatory compliance—something of a “box tick”—it has become central to tackling an existential threat for pension providers.
Pensions need to spark curiosity, interest, optimism—and yes, even passion—for members to feel they have control of their investments and care about the outcome. Engagement is absolutely essential.
Many industries have been quick to pick up the social media channels their customers use in their private lives. The reach of social media platforms such as Facebook, Twitter, and Instagram, coupled with prolific smartphone use, has revolutionized how people absorb information and communicate with businesses. On the one hand, pension providers have fallen behind in adopting newer communication channels to interact with their members. However, this leaves a lot of room for improvement through currently un-tapped methods of engagement.
Many pension scheme providers are now working to build a comprehensive approach that considers not only the channel but also the content. Technologies incorporating artificial intelligence, machine learning, and predictive analytics allow pension schemes to deliver a highly personalized and differentiated experience at scale. The reality is that no two retirements will look the same. By selling the vision that truly speaks to the member, pension providers can really get to the heart of their motivation to save.