Beyond the Defaults
In the first study, we take a deep dive into how better uses of language can help overcome some of the barriers that stand in people’s way when they try to move ‘beyond the default’ and consider their savings choices.
Small steps to a better future
Together with our research partner Nest Insight, we’re taking a deep dive into the world of auto-enrolment in the UK to ask whether better uses of language can help people in their mid-working life understand what their pension saving means for their retirement income
Helping ‘the squeezed generation’
Last year, in our first piece of research in partnership with Nest Insight, we highlighted the importance of helping members of auto-enrolled pension schemes make a clear connection between the pension saving they do today, and the income they’ll get when they retire.
This year, in our latest study, we’re taking a generational leap forward to members midway through their careers – also known as the ‘squeezed generation’ – to consider what choices they can take in mid-working-life to help make a difference to their retirement outcomes.
In Small Steps, we speak to 9 industry experts, 65 Nest members and over 1,500 UK pension savers to understand the barriers to retirement income planning for people in their late 30s, 40s and early 50s, and identify the steps that can be taken to help them overcome them.
Download the report today to discover our findings.
Three common barriers to engagement identified
Our research uncovers some surprising detail on which barriers are preventing people in their mid-working-life from engaging with their pension at this critical time in their lives.
Messages for change
By changing the way you frame retirement with language, you can help shift emphasis away from the barriers and reinforce positivity:
‘Start from today and plan forwards’
Helping people work from what they know, to understand the gap they need to close.
‘There are steps you can take’
Breaking it down into manageable and meaningful actions and showing the difference each step could make to a retirement income.
‘You’re already on your way to having a retirement income’
Build confidence by emphasising what they have, including the State Pension and any existing pension pots.
Optimised communications leads to striking changes
When asked before and after reading the messages developed in this research, significant increases were seen in the proportion of people who said they were likely or very likely to take action in the next six months:
- Likely to use online tools such as retirement calculators: from 29% to 51%
- Likely to set a retirement income or pension savings goal: from 23% to 40%
- Likely to check the balance of my pension pot: from 52% to 69%
- Likely to increase my pension contributions: from 16% to 39%
Download the report
In Small Steps, we speak to 9 industry experts, 65 Nest members and over 1,500 UK pension savers to understand the barriers to retirement income planning for people in their late 30s, 40s and early 50s, and identify the steps that can be taken to help them overcome them.
About our project partner
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.
Related research
This study is the third of a series of three studies produced in partnership with Nest Insight. To find out more about our previous reports into the language of pensions, please click on the links below.
