Pension scheme communications need to focus on members’ progress and the steps they can take to improve income, rather than barriers they could face without action, Nest Insight research finds.
Members can be put off by current communications that present barriers in terms of a lack of affordability, a feeling of being overwhelmed, and low confidence – all of which contribute to a “sense of defeatism”.

Small Steps to a Better Future, written in conjunction with Invesco and Maslanksy + Partners, found half of savers aged 35 to 54 said they could not afford to contribute more to their pensions, 40% felt overwhelmed, and only 20% felt on track with retirement planning.

The research focused on the so-called “squeezed-generation” who have less or no defined benefit entitlement but have not had the benefit of a full working lifetime with defined contribution provision.

They can also face a higher cost of living, caring responsibilities for two generations, and are less likely to own their own home by the time they retire.

Launching the research at the Pensions and Lifetime Savings Association (PLSA) annual conference yesterday (14 October), Nest Insight director of research and innovation Jo Phillips said: “One of the key drivers of inertia is the feeling that retirement is so long off but as we reach mid-working life and hit life milestones, we might start taking stop.”

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