Advisers believe pension providers will need to adapt the way they engage younger savers, amid growing concern that traditional approaches may not fully connect with those at the start of their savings journey, says People’s Pension.
New research by the pension provider found 74% of independent financial advisers say defined contribution providers need new ways to engage younger generations. Almost two thirds of (63%) of advisers believe providers should do more to help savers make informed decisions earlier.
The need for greater support also extends into later life. Over half (51%) of advisers say providers should play a more active role in helping members manage their money once they retire.
When asked what DC pensions should offer, advisers cited the need for practical, accessible tools that support better decision-making. Digital member platforms (41%), improved data and reporting (39%) and integrated retirement and decumulation tools (38%) are among the biggest priorities, alongside more personalised connections (34%).
Stuart Reid, distribution director at People’s Pension, said: “What this research shows is that expectations are continuing to evolve. Advisers want to see support start earlier in the savings journey and continue through retirement, alongside practical tools and reliable service that helps members make informed decisions at each stage.
“Whilst in the past younger employees were often less likely to participate in pension discussions, as they felt the core questions were more relevant to colleagues nearing retirement, that is now changing.
“We are seeing much stronger interaction and participation from younger employees, along with a growing understanding of the importance of getting started early. That will have a meaningful impact on their long-term outcomes and it is encouraging to see.”
Main image: 65O4Dw6-xLg-unsplash
