08 Jun 2026

Why employers can and should expect more from pension providers

The connected pension scheme member experience is upon us. Employers should expect providers to raise their game.

The workplace is changing rapidly, and employees now expect more than ever from their pension providers. In a digital-first world, employees want the same immediacy, personalisation, and seamless connectivity from their pension provider as they do from other services they use every day.

While pensions have been slower than other sectors delivering intuitive digital experiences, that’s no longer the case. Stronger digital capability and behavioural insights mean providers can now offer more joined-up, timely and genuinely useful experiences – a truly connected experience.

Combining highly personalised communications with integrated, accessible financial help services, is no longer a future aspiration, it's a reality - essential for modern workplace reward and wellbeing strategies. Whether online, through human interaction, or both, a truly connected experience helps pension scheme members act with confidence to improve their long-term financial resilience.

Why is a connected experience important for members?

A workplace pension is one of the most valuable yet misunderstood benefits. There’s still a gap between having a pension and engaging with it - research shows only 36% of people with a defined contribution pension are on track for retirement. This can be due to lack of financial knowledge, confidence or even the sense of direction required to maximise pension savings.

These challenges can mean members miss critical moments to act early enough or make decisions without understanding how these link to their wider financial situation.

As people live longer and rely more on defined contribution savings, bridging the gap between having and effectively using a pension becomes crucial.

What great connected member experience looks like

The very best experiences share three qualities – broad, effective and integrated support.

Broad support: Options matter. The type of support needs to suit your employees’ situation, goals and moment in time. From core communications, timely nudges encouraging action, coaching and planning offering a human touch to help people understand their options, through to Targeted Support – a new regulated form of financial assistance providing clear, actionable recommendations to help employees make financial decisions with more confidence. The gold standard is personal, financial advice tailored to an employee’s specific needs.

Effective support: The difference between options isn’t just the type of help offered, but the ability to improve member confidence and likelihood to act. Basic nudges may be reassuring for those with a high degree of financial confidence, or a step towards another type of support for those more hesitant, or lacking knowledge. Information and planning services will inspire confidence for many, helping members understand their options and outlook.

Targeted support, which could benefit 21.5 million people, offers actionable support with a point in time recommendation, reflecting needs and goals. While personal advice remains the deepest form of support, reviewing individual circumstances to identify what’s best for that person.

Integrated support: Great experiences help members move easily between types of support, as one connected journey. Data flows seamlessly between them, so each interaction builds on the last – providing relevant support at each stage, at the right time.

How it works in practice

Broad, effective and integrated support only matters if it happens when members are making decisions. When supporting members to prepare for retirement a good experience could look like:

Identifying and engaging at the right time - often earlier than they assume. Inviting them into the experience through an app or online account with personalised engagement through timely prompts, simple language and clear calls to action.
Encouraging the creation of retirement plans - providing a clear picture of how they’re positioned. This needs the right level of detail for their life stage - enough to be meaningful rather than overwhelming.
Prompting them to refine their holistic retirement plan. Targeted support can help members make a detailed plan specific to their needs. This may include planning with a partner, and incorporating other savings and properties.
Offering coaching or financial advice when it’s most likely to help - for members who want reassurance or help making their plan actionable, an optional digitally enabled coaching conversation could build confidence, answer questions, and increase readiness to act. For more complex needs or where further hands-on support is required, a qualified financial adviser can provide advice.
Encouraging members to take action - through digital journeys, supported by people where needed. Importantly, the experience should import relevant plan data so members don’t have to re-enter, so it feels connected and easy.
Prompting members to keep their plan updated - ongoing reviews to help them stay on track and update assumptions as circumstances change. Proactive communications, for example, during market events or key milestones, would help members feel supported.

This type of connected experience allows members to enter the journey at different points of their life, get the level of support that suits them and move forward without repetition. Done well, it turns pensions and financial planning from a once-a-year interaction into an ongoing experience that helps people make better decisions, earlier and with more confidence.

What this means for employers

Employers should expect more. Committed and capable pension providers have the tools, regulatory permissions, and technology to deliver a joined-up experience that drives real change and better financial outcomes. Embracing this shift can mean:

A more financially resilient workforce
Stronger engagement with benefits
Support that aligns with expectations
Reduced pressure on HR teams through streamlined journeys
A more compelling employee value proposition

And all of this can come at little or no cost and effort for the employer. Choosing a provider today, is about more than just charges, default funds, and service benchmarks. It’s equally about the ability to deliver connected, outcomes-driven experiences that provide quality financial support.

Conclusion

Those who push pension providers to raise their game can strengthen their benefits offering and help employees build the confidence and resilience needed for long-term financial resilience.