Watson Wyatt urges employers to improve member engagement - PP SPRING SHOW

Watson Wyatt head of communication consulting Richard Veal said employers and trustees should take a "consumer approach" to member communication.

He said: "The DC experience so far has seen low take up rates, low levels of saving. Around half of DC members are not certain their investment choices match their needs.

"There has been relatively little employer/sponsor focus and oversight. But there are signs of a brighter future.

"There is a step change in both client attitude and the quality of DC arrangements. Many clients are now reviewing existing DC plans, there is increasingly more focus of time and resources on DC schemes.

"There is a definite move towards making DC better."

Veal said the ITV pension scheme used an innovative marketing campaign to increase take up into its DC scheme.

He said: "Campaigns need to be bold to make pensions interesting. You need to communicate three simple concepts - know how much you will need, contribute as much as you can afford and make your money work."

He added engagement makes "commercial sense" because employees will value their DC pension more.