Working together with Nest Insight, we've looked into the language of defined contribution pensions to provide practical steps on how you can help people in their 50s and 60s avoid making snap decisions, and instead make the right choices to give them the retirement they want.
Through our research, we've gained a richer understanding of the stumbling blocks older workers face in preparing for retirement. Common barriers that those nearing retirement face, include:
1 in 2 people in their early 50s believe they can’t afford to contribute more
1 in 3 believe it’s overwhelming and there’s too much to think about
3 in 10 don’t know what steps they can take to better prepare for retirement
1 in 5 think it’s too late to make a difference
In Gearing up for retirement, we uncover the key themes that help support people nearing retirement, and provide examples of how they can be adapted to your own pre-retirement messaging.
When saving for retirement, people often think of the size of their pension pot rather than the level of income it might generate.
“It’s helpful to think less about that total number and more about how much income those savings could provide you month-to-month”
Encouraging conversations with friends and family or sources of guidance could help people overcome the initial barriers to engagement.
Most prefer messages that start with simple choices, broken down into discrete steps, that then ramp up over time to cover their options in detail.
These messages, when tested among 1,500 pension savers in their 50s and early 60s, resulted in a significant positive impact on people’s intentions and outlook:
in the number of people planning on arranging a call with a free government pensions advice service or speaking to a financial advisor.
in the number of people that feel in control of their pension savings.
in the number of people who intend to use online tools and resources like calculators or advice forums.
in the number of people who said they were rethinking the age at which they will retire.
in the number of people who disagree with the idea of withdrawing their pension savings as soon as possible.
In Gearing up for retirement, we speak to 11 industry experts, 8 Nest members and over 1,500 UK pension savers to understand how people nearing retirement talk about their retirement options, and give you practical ways to get them engaging with their pension.
Established by the UK government as part of its auto enrolment initiative, Nest is one of the world’s fastest growing pension schemes with 8 million members and counting. Nest Insight is a collaborative research unit set up by Nest Corporation to help understand and address the challenges facing Nest members and other defined contribution savers. Working in partnership with industry, academics and policy makers around the globe, their mission is to understand and address the challenges facing defined contribution savers.
