Just under three-quarters (74%) of independent financial advisers (IFAs) believe defined contribution pension providers need new ways to engage younger generations with retirement saving, according to research by master trust provider People’s Pension.
Its survey of 500 small and medium-sized enterprise (SME) decision makers also found almost two-thirds (63%) said providers should do more to help savers make informed decisions at an earlier stage.
Meanwhile, 51% of respondents said providers should play a more active role in supporting pension scheme members at retirement.
In terms of what DC pension schemes should offer, 41% of respondents said this should include digital member platforms, 39% would like to see improved data and reporting, 38% felt this should include integrated retirement and decumulation tools, and 34% said these should offer personalised pensions communications.
Stuart Reid, distribution director at People’s Pension, said: “What this research shows is that expectations are continuing to evolve. Advisers want to see support start earlier in the savings journey and continue through retirement, alongside practical tools and reliable service that help members make informed decisions at each stage.
“Whilst in the past younger employees were often less likely to participate in pension discussions, as they felt the core questions were more relevant to colleagues nearing retirement, that is now changing.
“We are seeing much stronger interaction and participation from younger employees, along with a growing understanding of the importance of getting started early. That will have a meaningful impact on their long-term outcomes, and it is encouraging to see.”
