Top tips for getting complex pensions messages across
What’s the biggest problem with UK pensions? According to the people who use them, it’s the complexity.
Trying to understand a pension, let alone access it, can feel like wading through treacle.
Our research shows that 64% of employees say pensions are too complicated.
The top three problems we identified, in our August 2023 whitepaper, were:
- Confusing language
- Complex rules
- Too many pension pots
It’s all just a bit too much
Why should we help employees overcome pension complexity?
In an ideal world, our employees would absolutely love the pensions we set them up with.
They’d feel in control, maybe even excited for the future and grateful for our help. Is that so farfetched?
Considering all the free money that pensions promise in terms of employer contributions and tax relief from the government – these accounts are a diamond in the rough.
In reality, these benefits (and the expense to your business) go unnoticed, hidden beneath the complexity on the surface.
This means employees don’t understand, engage with or save enough into their pensions.
So we have some work to do to clear things up.
What to say and how to say it
There are two parts to consider when communicating pensions.
- What you say.
- How you say it.
For the best results, you need to consider both.
Top tips for what to say
- Make it jargon-free: Most people have no idea what technical terms like ‘qualifying earnings’ or ‘drawdown’ mean. But sometimes there isn’t a simpler word to use instead. In these cases, take the time to explain what you mean in more detail, using everyday language.
- Tackle one thing at a time: You can give an overview of pensions, their benefits and how they work pretty quickly, but the more complex topics need breathing room. Explaining how to set a target age and pension pot total, for example, has a lot of moving parts. Take things step by step.
- Put things in context: Your messages need to be relevant and interesting. If you just talk about numbers and percentages, don’t be surprised if people switch off. Focus on emotions, experiences and goals. If money is the tool, talk about the target.
- It’s not just about the long term: Employees can only access their pensions in later life, and it could be a very long way off. Why should they care now? If you can answer that question, they’ll be much more inclined to delve into the complexities. For example, sustainable investments are great because they impact the world today – a topic you can talk about.
Top tips for how to say it
- Make it a series: As we suggested, it’s best to break up your messages and tackle one complex topic at a time. We don’t want to overwhelm anyone. So, why not set one topic a month and focus on that. You could send an email, create some content, or talk about it in a monthly team meeting.
- Use graphics and images: Think visually. Could a nicely designed graph explain it better? Would a poster get this message across better than an article? What about a video – even something recorded on a smartphone, your in-house expert talking, might do well to capture the details.
- Walk them through it: Possibly the best thing you could do is to get interactive and give employees a chance to ask questions. Walkthrough webinars or even one-to-one meetings are particularly good at this. You could tackle one topic per session, save the recording, and make it available to watch on demand.
When we asked employees what would help them engage with their pension, the top response (46%) was ‘better communication that I can understand’.
Getting this right is important to your people. And as you’re already paying out for pensions, you might as well make them pay off.
In partnership with NatWest Cushon
Cushon is an online savings&investments platform provider, offering holistic workplace savings.
