For some time, master trusts have been considered full of disengaged members and employers that simply want to ‘tick the compliance box’ and move away. For us here at BlueSky, this isn’t good enough, and we therefore prioritise member engagement.
So, how important is member engagement and how can it be achieved?
Maintaining progress with auto enrolment and continuing to move forward in engaging individuals is vital. Whilst we may already have people involved with our pension arrangements, we must acknowledge that contribution rates are set to rise, and some key individuals are likely to find tough times ahead as finances grow tight.
Here, member engagement becomes a key strategy for pension schemes, ensuring that members clearly understand the benefits of paying into a pension arrangement.
It is all too common to see a retirement letter that not only explains the concept of pensions, but discusses the entire journey, right through to the options available. This is simply too much! We must break down the information that we are providing to our members, whilst drip-feeding them small and digestible amounts of financial education, right from the very beginning of saving.
Financial service firms will often find themselves bogged down in terms and conditions and regulations, and can therefore find it difficult to communicate. As an industry, it is our job to cut through this and focus on communicating the correct messaging, at the best point in the process.
Engagement has grown to become a widely-discussed topic throughout the industry and will often feature as a focus at industry seminars and events. As recent statistics put daily internet usage for adults at approximately 80%, it is vital that we are utilising technology to engage with our members. As a society who are familiar with using social media to digest bitesize chunks of data and information, we must now look to make better use of these platforms, and refuse to remain in the past.
The first important step in achieving member engagement is setting communication and engagement strategies. While doing so, it is important to remember that you are not trying to create an expert of your member. Instead, you are working to encourage your member to make better decisions and select the best options for them when they reach retirement.
BlueSky ensure that member engagement is a key strategy for trustees, and pay particular attention to ensuring that when our administrators are talking to our pension scheme members, they are aware of the level of engagement that is required to ensure that they are fully informed, in order to make the best decisions for themselves and to get the most out of their membership.
In our latest video, BlueSky Director of Operations, Jessica Rigby discusses the importance of member engagement and how it can be achieved.
To learn more about how BlueSky can assist you, and to speak with a member of our expert team, visit www.blueskypensions.uk or call us on 01322 308 249.