Simplicity is the Key

What’s all the noise about?

Understanding and managing pension obligations and regulatory requirements can be time consuming, complex and, let’s be honest, a little hard to navigate at times. That’s why The Pensions Regulator (TPR) has consolidated 10 of its existing codes of practice, with the aim of providing one set of clear, consistent expectations for pension scheme governance and administration.

One of the key changes is that there is now more pressure on trustees to focus on effective member communications, and be able to evidence that their communications are meeting requirements.

Communications are no longer a box-ticking exercise

TPR's new general code serves as a catalyst for a communication strategy that not only meets regulatory standards but surpasses them. It’s not enough for trustees to assume that existing policies and procedures meet the standards expected.

Your communications should focus on:

1. Trust and transparency: The bedrock of effective member communications is in building trust and transparency. Trustees need to take a proactive approach to communicating governance policies, decision-making processes and risk management strategies. Transparency creates trust and empowers members to make informed decisions about their pension savings.
2. Construct a clear narrative: This not only ensures that every communication you output makes best use of your time, focus and budget, but it also creates greater value for your members and improves engagement. In our 2023 State of the Sector¹ report, only 63% of the 2,000 respondents measure the impact of their communications on their audiences. While this is a solid foundation, there is much room for improvement.
3. Tailored and accessible channels: Trustees have a responsibility to consider the needs and preferences of their members and provide information through their preferred channels. Generational differences in what people view as fair and equitable, and what channels suit their learning and communications styles are now heavily shaping and influencing how trustees position and create best practice communications.
   
   With 96% of Generation Alpha² (those born between 2010-2014) expecting everyone to be treated fairly, this generation will be looking at how organizations address accessibility, neurodiversity and supporting people where English is a second language. Now more than ever, it’s important that trustees embrace and tailor communications to reflect the changing landscape and member demands.
4. Education and empowerment: Member communications should go beyond providing updates – Trustees should use communications to educate members about pension basics, investment options, and the choices they need to make. By empowering members with knowledge, members are more equipped to make informed decisions and proactively engage with their pension.
   
   Members now expect a more tailored and connected approach to communication. After all, this is what they’re seeing everywhere else, on platforms such as Amazon, Instagram and lifestyle apps. Understanding someone’s attitude to money and their financial needs and habits helps to foster a greater level of trust, engagement and connectivity. In addition, the use of risk profile tools, modellers, video content and ‘people like me’ stories all help shape and support a more engaged, empowered member base and should be a key part of a scheme’s communication approach.
5. Feedback and member input: Governance practice should incorporate ways to capture member feedback and input. Actively providing ways for members to voice concerns or suggestions is essential. Incorporating member feedback into decision-making processes demonstrates a commitment to member engagement and ensures that communication strategies are responsive to member needs.
   
   Identifying where members are stumbling over online pension transactions, understanding why they are not bothering to activate their online pension account or why they are contacting the call center for information that could be found online, are all issues that could be avoided if we listened more intently to members’ needs. Creating tracking mechanisms to more closely analyze call center activity, monitor administration and marketing communications, plays a fundamental role in understanding the member experience.

We actively work with our clients to support a more connected approach to member communications – we know that our communication solutions work because the measurable member outcomes prove it.

It’s not all doom and gloom

The good news is, as an industry, we’re already adopting many of TPR’s codes of practice in supporting pension scheme members. But…many schemes know they still have a way to go to.

We have a duty of care to members to gain an in-depth understanding of our target audiences and member vulnerabilities – this is not just how far away from retirement they are, we need to dig much deeper to ensure communications feel personalized and relevant. Part of the requirements from TPR is that communications make sense to the intended audience, they drive positive action in a powerful and meaningful way, and that the value and effectiveness can be tracked and measured. So, if nothing else, I want to leave you with two areas of focus:

1. Ensure your communication messaging is effective. This means you have an understanding of your member base, their communication style and preference, and this is translated through your design, branding and clarity of the communications. You have sound feedback mechanisms and rigidly govern and manage member information to help identify ineffective communications.
2. Your communication strategy should also continuously assess how the information is perceived and received by members. The key here is continual improvement. Sticking your head in the sand or thinking a once and done approach is ok, is no longer acceptable.

Want to find out more?

Our team of pension communication experts can help you to define a communication strategy that works for your members’ needs. Contact us today.

1. Gallagher’s Communication Consulting Practice 2023 State of the Sector report
2. Alpa Patel, Setting the Financial Stage for Gen Alpha by engaging Millennial parents, Forbes 8 March 2023