Unclaimed pension pots are now equal to roughly £19.4 billion, according to the Association of British Insurers.
But people aren’t just misplacing their pension pots — they’re forgetting about them. Pension awareness is alarmingly low, and it’s become a huge threat to the financial futures of savers everywhere. Just 20% of individuals are confident they’re saving enough for retirement.
To tackle this issue, providers and schemes across the U.K. are coming together and supporting the Pension Attention campaign: a cross-industry campaign led by the Association of British Insurers (ABI) and the Pensions and Lifetime Savings Association (PLSA) to boost awareness around people’s pensions.
From creating clear messages to leveraging an omnichannel approach, we’ll share how providers and schemes are winning over the pension attention of today’s savers.
Clarifying Messages With Video
The best way to help people pay attention to their pensions? Help them understand it.
Unfortunately, pensions can be complicated. What investments should I make? Am I on track to retire at my goal age? Topics like these can be hard to understand, and blocks upon blocks of text can overwhelm members, rather than help them.
But providers have found a solution: Personalized Video pension statements. Rather than tell members what they need to know, schemes are sending out explainer videos that break down everything they need to know in a matter of minutes. Our own research shows consumers are 3.5x more likely to prefer video when a brand is explaining complex information.
This easy-to-follow video from Standard life breaks down members’ statements with visuals aids and voiceovers. It not only boosts member engagement and understanding, but also empowers customers to take better control of their financial future.
Another topic members struggle to understand? Their financial future. It’s vague and unclear, which makes it easy to forget. And when members don’t think about their future finances, it’s not likely they’ll think about their pension pots, either.
To make it easier to plan ahead, send them a video made just for them, as BBVA has here. Told from the perspective of the viewer, this video is full of personal touches — making it relevant, engaging and insightful.
And these videos make a real difference. BBVA saw long-term savings increase 78% as a result of the campaign.
Making It Fun
Research shows nearly half of adults (48%) failed to check their retirement savings in the past year. Why? Simply put, pensions can be lackluster — and that makes them easily forgettable.
But the industry is changing and taking a more creative approach to put the spotlight where it belongs. Take a look at this track that Big Zuu, British rapper and TV personality, created for the Pension Attention campaign.
📢It’s time to Pay Your Pension Some Attention📢
— #PensionAttention (@PensionAttn) September 8, 2022
A lot of this is about awareness — getting people to realize the importance of tracking their pension and making intention decisions about their savings.
That’s part of the focus behind National Pension Tracing Day. In collaboration with the new Pension Attention campaign, this annual awareness day is organized around a national “treasure hunt.” Featuring checkpoints, treasure maps, and more, it’s designed to encourage savers to trace their pensions.
What’s the treasure at the end of the Great Pension Treasure Hunt? They estimate there could be as much as £26.6 billion in a collective 2.8 million lost or forgotten pension pots still unclaimed.
Reaching Members Where They Are
From email to social media to apps, providers are adopting an omnichannel approach to reach consumers where they are. The Pension Attention campaign, for instance, has taken to social media to engage with savers.
— #PensionAttention (@PensionAttn) October 5, 2022
Interacting with followers is a great way to boost engagement and awareness — 81% of Gen Z agrees they would be excited if a brand wanted to use their content in their marketing or ads.
The financial industry is leaning into in-app communications to better engage savers, too. Experts predict 72% of adults in the U.K. will use mobile apps for banking by 2023. Will pensions be next? The Personalized Videos shown above can easily be added to a member app, an approach that other tech-forward industries like gaming and travel have already adopted.
Looking Towards the Future of Pensions
Member engagement in the pensions space is stalling, but providers are challenging this by uniting behind a common cause: boosting pension awareness. Their efforts consist of new, creative ways to engage savers — and help them better prepare for their financial future.
One way providers are improving their pension communications? With data-driven videos that cover everything members need to know at a glance. They’re short. They’re engaging. And they drive real change, from increasing contributions to signing up for an online account.
Check out our work with top providers to see what these videos look like in action.