How pension provider data can help shape benefits strategy
Just over one-third (37%) of people think they’re saving enough for a comfortable retirement, according to Standard Life’s Retirement Voice 2023 report.
That means most people aren’t confident that they’re putting enough money away for their future.
The report also shows that managing finances weighs on people’s minds, with one in five (18%) saying they’re unable to focus on other things. And almost one in 10 (8%) have needed to take time off work.
It’s clear that financial worries are affecting people’s wellbeing – both at and outside of work.
But employers are in a great position to support employees’ financial wellbeing, particularly through their workplace pension. Indeed, having a plan for retirement – such as saving into a pension – is a key part of feeling financially well.
However, it’s difficult for employers to know how many of their employees are on track for the retirement they want.
That’s where access to meaningful data from a pension provider can make a big difference – both to employees and your reward strategy.
Pension data power
Data from a pension provider removes the guesswork. It offers insights into how employees are interacting with their pension scheme, allowing you to spot poor engagement levels, low retirement savings, or even missing beneficiary details.
Using this data allows you to create a benefits strategy based on what employees really need, and what could help them achieve their retirement goals. That means you can build a strategy that pivots depending on an individual’s circumstances, and focuses on support where it’s needed most.
Standard Life’s Client Analytics platform gives employers insights into how employees are engaging with their pension, the key barriers that prevent them from engaging with their pensions, and what data and tools could help overcome those barriers.
A few ways Client Analytics can help:
Identify where members are projected to fall within RLS
Client Analytics incorporates data from PLSA’s Retirement Living Standards (RLS), allowing you to see at a glance where members are projected to fall within each band.
That means you can support those who are most at risk of falling into the ‘minimum’ or ‘below minimum’ bands. Plus, you can get suggested next steps to help you take action quickly, such as delivering targeted campaigns or providing financial wellbeing support.
Compare against the industry
Not only can you see where members fall within each RLS band, you can also see how this compares with industry norms.
This built-in benchmarking can help you understand if you’re lagging behind and if you need to review your benefits strategy to better align with members’ needs.
How members are engaging with pensions
Client Analytics provides key insights into member behaviour. You can also segment data by filters like pot size or number of years to retirement, to help you uncover any trends or gaps.
Understanding member behaviour allows you to see where engagement is low or falling. That way, you can tailor and target your communications to specific groups – and get those engagement levels up.
Segment data by gender to focus communications
Clients said they wanted to understand more about how they could help tackle the gender pension gap. All data points within Client Analytics can be split by gender, giving employers a clear view of where they may need to focus their engagement efforts.
For instance, you could use this data to increase communications to women who have taken a career break, when pension savings generally take a dip. Employers could create a campaign to help members decide if they should make extra contributions when they return to work.
Ultimately, data from your pension provider is key to helping you understand your members better, so that you can build a benefit strategy that helps more people get on track for the retirement they want.
For more information on financial wellbeing, including resources on how you can help support your employees, take a look at our Financial Wellbeing hub.
In partnership with Standard Life
Standard Life are part of Phoenix Group, the UK’s largest long-term savings and retirement business. We both share an aligned ambition to help every customer enjoy a life full of possibilities.
