Its latest ‘Excellence in Endgames’ paper, The Member Perspective: getting the member experience right, looks at what matters to members of DB schemes, how they engage and highlights the need for clear member communication and support. If the member experience is done well, it claims, members feel informed and empowered, leading to better decisions throughout their pension journey, and ultimately better outcomes. This will also strengthen the scheme’s position as it heads towards endgame.
The paper includes findings from a survey of 1,000 DB scheme members, looking at their concerns, how they engage with their pensions and their confidence in making pensions decisions. These reveal that while three quarters (75%) of members feel they understand their pensions, gaps in members’ knowledge and understanding exist. A quarter (26%) reported that they lack confidence in making pension decisions and one in seven (14%) said they were unsure about options presented to them.
Member experience crucial as schemes approach endgame
“Member experience should sit at the centre of a well-run scheme. When schemes offer meaningful support and communicate well, members feel informed and confident. Regardless of a DB scheme’s ultimate endgame path, whether a scheme is running on or planning to buy out, it’s vital that trustees put the member experience at the heart of their planning.
“Our research shows that members are asking for more support. Nearly half (46%) wanted better communication and a third (36%) wanted guidance from an employer. As they approach retirement, many members are trying to make important choices about their future. They want clear messages that explain what their options are, information that’s easy to access, and timely responses when they have questions. Getting this right while the scheme is running on leads to better outcomes and engagement from your members.
“Schemes also need to maintain accurate and secure data. Data that isn’t well maintained can result in delays, data handling risks or even the wrong benefits for members. Good administration is another foundation of great member experience. Ultimately, high quality data, effective communications and good administration all impact the member experience, and getting this right is crucial. Not only to improve the member experience today, but also to reduce the risk of unwelcome surprises during any transaction to transfer liabilities.”
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