Why member support is vital when it comes to DC pension planning
The engagement process, for defined contribution (DC) pension plan members, is paramount in maintaining a healthy relationship between employers and employees regarding their pension pots.
The Trends in the DC Market Survey from PS Aspire looked at three basic considerations within DC retirement plans including the role of contributions, member support and value for money.
In the survey, the bulk of respondents indicated using at least two of these different methods of supporting employees’ retirement planning. This is broken down in Figure 1 to show types and frequency of delivery of different types of retirement planning support made available to members.
Figure 1 Types and frequencies of support made available to employees
It can be seen that traditional face-to-face guidance (via pension clinics, presentations and seminars) remains popular in addition to remote support such as calculators, newsletters and broking services being widely used.
The frequency of support available to employees, however, seems to be more skewed to the infrequent end as the majority of employers are providing support on an annual basis.
Employer size was found to be the key determinant for the frequency of support available.
In addition to the above, employers made reference to roadshows, induction presentations and financial education seminars covering a range of personal financial matters including retirement planning.
This article was provided by Punter Southall.
Supplied by REBA Associate Member, Punter Southall Aspire
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