The event was attended by over 150 pension professionals who were asked if they thought a greater focus on Artificial Intelligence (AI) providing guidance for pension scheme members could be a solution to closing the member engagement gap.
Almost one in five respondents (19%) said they believed that AI is going to be “a core part of the solution”, whilst an equal number (19%) said they did not think it would. The overwhelming majority (62%) felt that AI will be a part of the solution, but that care needs to be taken in addressing the risks.
Attendees were also asked which change could most improve retirement decision making by pension scheme members.
Over a third (37%) answered that “simplified choices and communications” could do most to improve retirement decision making by members, followed by almost a quarter (24%) who said that “earlier and more frequent engagement” could be most impactful. One in five (20%) felt that “more personalised guidance” could be key, with more than one in ten (13%) highlighting the importance of “lower cost advice solutions”. Finally, 6% responded that “implementing dashboards and small pot consolidation” could most improve member decision making.
SPP Member Priti Ruparelia, Trustee Director and Head of DC at the Independent Governance Group, who chaired the event, said: “Ahead of the introduction of Default Pension Benefit Solutions and Targeted Support, these results highlight a growing consensus across the industry that improving retirement outcomes will require a combination of clearer communication, earlier engagement, and smarter support for members.
“The AI polling was particularly revealing, with over 80% indicating it could play an important role in closing the member engagement gap. While AI may not be the whole answer, and its rollout must be balanced with any risks, it is increasingly seen as part of the toolkit for improving member engagement and retirement outcomes.”
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