Johnson Fleming launches ‘nudge’ comms service

Johnson Fleming has launched a ‘nudge’ communications service in a bid to provide individually targeted communications to defined contribution scheme members.

The group pensions, risk and healthcare provider said the service would help members with their retirement planning and help them achieve better outcomes from their scheme.

This approach uses scheme data to pinpoint certain trigger points, relevant to each individual member. These include key stages, such as joining and in the run up to retirement, but also a number of other points during a members lifetime, including:

- reminders when a member hasn‟t logged on to view their fund value for over a set period of time - with a link to log-in to their own secure area of the scheme website;

- notifications when a member's fund reaches a certain size (for example, equivalent to the member's salary) to remind them to check their fund choices - and information on how to receive additional help with this; and

- reminders to book a space at a forthcoming financial education or retirement planning seminar.

Johnson Fleming senior consultant Iain Chadwick explained: "The governance of DC pension schemes remains a key area of focus for the regulator - and truly effective governance should focus on getting the right outcomes for your members, rather than simply demonstrating ‘we have done something'.

"We all know that a personal communication, directly relevant to our own circumstances, is much more likely to encourage us to take action. That's exactly what our nudge communications are designed to achieve. By linking communications to certain trigger points, we are able to provide members with information and reminders at the exact time they should be considering taking action."

Chadwick added: "This highly personalised approach can make a huge difference to an employee's understanding of the choices they need to make and, ultimately, the outcomes they receive from their DC scheme."