Top 5 tips for ensuring your pension messages are on target
Most pensions communications are akin to throwing the proverbial mud up against the wall – some stick, but most don’t. Even the best messages probably don’t really move the dial on engagement levels – and not necessarily because of quality of content.
The trouble is, they are too generic, too catch-all and rely too much on employees deciding if they’re relevant. There’s little, if any, personalisation.
Pension members aren’t homogenous. Some are further from retirement than others, younger members have other pressing financial needs that stop them thinking about the long term and some have more knowledge of pensions than others.
As caring employers, you might think that everyone should be interested in pensions, but the fact is that they are not. A more realistic position might be that everyone has awareness that pensions are important but they’re not a priority, depending on where they’re at in their life’s financial journey.
It’s a bit of a tricky dichotomy in that for most, getting involved and paying in as much as you can from the earliest age is the secret to a good pension. Leave it too late and we’re talking inadequacy and disappointment.
Here are 5 top tips for creating a pensions communications strategy that speaks to everyone and gets them engaged:
1 - Create a strategy, not a campaign
Too many employers and providers tackle the problem with rounds of campaigns outside of a clear overall strategy. Take, for example, a campaign to get people to consolidate all their pension pots or to increase their pension contributions. Both valid and applaudable campaigns, but it could be back to slinging mud.
Unless these campaigns are well targeted and are part of a broader strategy of information and context, they’re going to yield little value. We need to be clear about who we’re talking to, where our audience is at in their lives and, based on these points, what message is likely to hit the target and get some action.
A campaign is tactical whereas a strategy takes an overall view with a key goal in mind, for example getting people more informed and engaged. It requires us to get a handle on our audience, breaking it down into different groups with different messaging requirements. It’s about understanding different groups of members and honing in on what’s important to them.
2 – Don’t overdo it
Maybe it’s a compliance concern, but too many pension communications include too much information, messages and calls to action.
When we’re talking about pensions, the old adage of less is more couldn’t be more true. Pick one main message and stick with it – leave everything else aside. And be clear about the call to action.
Maybe it’s a message to get members to complete their nomination of beneficiary form. All it needs is a clear reason as to why it’s important and then instructions on how to do it.
3 – Speak in everyday language
One of the biggest barriers to engagement with pensions is jargon and complex language. If people don’t understand the message, they’re not going to respond. It’s vital that any industry speak is replaced with words that everyone will understand.
If terms like annual allowance, pension commencement lump sum, default fund appear, you’ve failed the simplicity test. Depending on the communication, sometimes we have to use these terms, so if they are unavoidable, they need to be well explained in simple everyday language.
4 – Give your messages context
Too often pensions are spoken about without any context, which makes them one dimensional ie, they’re only about providing a pot of money or an income at retirement.
Without wider context, swathes of members will never be engaged. For example, younger employees who might be 30 or 40 years away from retirement are not really going to get excited about a pot of money that only really means something to them in the far off distance.
We need to tell them about how it impacts them today. Maybe focus on something that they really care about like the environment. Maybe if they knew their money is doing good in the world and if you showing them the positive impact their money is making would make it matter today.
5 – Review, change and review again
It’s crucially important to look at what’s successful and perhaps, more importantly, what isn’t. The world is constantly changing and so are the needs, views and wants of pension members. We need to be constantly looking at communications and checking to see how well they’re being received.
What are the open rates? Are more people increasing contributions? Are engagement levels improving?
If the answer is no. Go back to the drawing board and change approach. Sometimes, it’s just about tweaking, other times it’s about changing the entire message.
You can get people more engaged with pensions – you just need the right strategy and the right language.
In partnership with Cushon
Cushon is an online savings&investments platform provider, offering holistic workplace savings.
