Three-quarters of 2,000 savers surveyed by Bravura do not have the technology that they need from their providers to engage properly with their pensions.
The research, released on 24 March, revealed an eminent desire for technology as part of their approach to retirement planning. More than a third (37%) of those surveyed want mobile apps, while 30% want interactive calculators, comparison tools and affordable financial advice.
The pensions industry is working to offer savers technology with the aim of improving engagement. Providers are currently connecting to pensions dashboards, under an initiative that has been dogged by years of delays.
“Dashboards will undoubtedly be an important step towards effectively modernising the UK’s pensions sector, and the industry needs to use this as a springboard to find its place in the open finance ecosystem and all the benefits it will bring to consumers,” said Bravura’s EMEA proposition lead Jonathan Hawkins.
Inertia stifling engagement
Bravura’s research revealed that inertia is the most common reason behind people failing to engage with their pension, while 42% of those aged 18 to 24 find it difficult to understand communications from their provider.
Almost half (49%) would engage more with their pension via their current account. But 41% of providers still rely on post to communicate with their members, despite the apparent demand for more technological solutions.
Desktop websites were the most common channels used for managing pension money, followed by email and mobile apps.
“Providers face a maelstrom of industry issues, while relying on unscalable manual or semimanual processes,” wrote Hawkins in Bravura’s report.
“Small pots create complexity and inefficiency. And a lack of effective industry standards and inconsistent processes increase the cost to serve and overwhelm savers.”
