Employers should wait to educate on investments

  • By: Taha Lokhandwala
  • 06 Feb 2013
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Schemes should prioritise communications and hold back on more complicated information to avoid disengagement, the PP Pensions and Benefits Communications Forum was told.

Speaking at yesterday's forum, Friends Life pensions communications manager David Millar told delegates that trustees should not worry if new members lack knowledge of investments.

He said members can end up feeling "slightly stupid" if they know they have been given all the information but don't understand it and can become disengaged.

He added: "If they've been in a pension scheme for five years then I would want that audience to be more engaged in investments, but if I take a pulse of everyone at the starting point I'd be less worried about them and more worried about the ones who have been in for a while.

"We have time to educated people of difficult subjects; we don't have to do it all at once. Educate about benefits when it's more relevant to the user."

Millar was critical about the amount of written information provided to new joiners and said communications should provide links for those who want it, but not provide information to 90% of the population which only satisfies 5%.

"People in certain circumstances, when they get engaged on a topic will hunt information, so if you have a microsite where you can sign post, they will hunt it."

The forum was also advised to adopt marketing to principles when it comes to communicating benefits (PP Online, 5 Feb).

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