How the pensions industry can better support people with mental health problems

Whether it’s worrying over whether we’re putting enough aside or figuring out when and how to draw from our pension, planning for retirement can be difficult for any of us.

But for the 2.3 million people with mental health problems in the UK who are approaching the end of their careers, figuring out your next steps can be particularly challenging – which makes effective pensions information and guidance even more vital.

Research we published last year found that people with mental health problems have extra hurdles to clear, from the beginning to the end of their pension journey.

The barriers to employment that many people with mental health problems face can lead to lower and patchier savings or missing out on employer contributions altogether. And for some of us, the distress of living with poor mental health can make reaching retirement seem impossible, and so not worth preparing for. Taken together, that can leave people with mental health problems facing a financial cliff-edge when they reach retirement.

Lack of awareness

While there has been significant progress across the sector to make pensions information and guidance more accessible, our research shows that people with mental health problems are often struggling to get the information they need.

For example, we found that more than one in four people with mental health problems say they did not know they had to choose how to take money from their pension – compared to just one in six of those without mental health problems.

Opportunities to offer support are being missed. People with mental health problems say that the way pension advice, guidance or information is designed and delivered can create psychological and practical barriers that can end up pushing us further away from support.

We heard from many people with mental health problems who told us how the way pensions help and information is promoted gives the impression it is ‘not for them’. Adverts for retirement planning featured middle-class people with a stable income and a large savings pot, and so can leave people unsure where to turn if they don’t fit this image.

Accessing support

The ways we can access support can also make life harder. Common symptoms of many conditions can hit the skills required for long-term financial planning.

Changes in cognition or medication can slow down processing speed, for example, making it difficult to digest complex information or weigh up the pros and cons of different retirement options or products. Other symptoms like memory problems might mean people struggle to recall details about income, employers or pension pots.

But the good news is that there are lots of practical steps that pension professionals can take to ease the difficulties that people with mental health problems are experiencing, and reduce the feelings of fear and anxiety that many people feel when engaging with decisions about their future.

• Getting the messaging right

Pensions professionals should review the design and promotion of pensions information and guidance to ensure that the messaging resonates with people with mental health problems.

This could be done by making language as simple and accessible as possible in all information aimed at customers – and presenting it in small, digestible chunks – can also help those experiencing cognitive symptoms understand and process this information.

• Expanding the ways people can get in touch

Given that three quarters of people with mental health struggle to engage with at least one commonly used communication channel like the telephone or letters, it’s vital that pension providers and retirement planning services offer a range of ways to get in touch and take action.

Offering communication channels like web chat and email in addition to phonelines can also help people keep a record of important information and conversations that they can refer back to.

• Mental health training for customer-facing staff

Pension providers and retirement planning services should train their customer-facing staff to better understand how mental health conditions can impact an individual’s ability to understand, communicate and make decisions, and what practical adjustments can help.

Creating a positive environment around mental health disclosure by proactively enquiring about mental health problems can equip staff to anticipate people’s needs and tailor their approach accordingly.

Time to act

Everyone deserves a dignified and financially stable retirement regardless of their mental health.

While some of the deepest drivers of pension inequalities are rooted in the labour market, it’s clear that there’s lots of potential within the pensions landscape to improve outcomes for people with mental health problems.

And with the numbers of people struggling with mental health problems continuing to rise, there’s never been a more urgent time to ramp up action.

Conor D’Arcy is deputy chief executive of the Money and Mental Health Policy Institute.

Money and Mental Health’s Mental Health Accessible programme works directly with firms to deepen their understanding of the challenges faced by people with mental health problems and help them improve their services. Find out more here.