• Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
  • Events
  • Whitepapers
  • Spotlights
  • Digital Edition
  • PPTV
  • Newsletters
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
    •  

      You are currently accessing ProfessionalPensions via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Subscribe
  • Events
    • Upcoming events
      event logo
      Investment Conference

      This two part Investment Conference will bring you the latest updates from economists, asset managers and pension consultants. We will be taking a look at the outlook for the 2021 economy, alternatives, cashflow strategies and global equity markets to name a few, assessing how they fared through the volatility and what we can expect for the year ahead.

      • Date: 20 Jan 2021
      • Digital Conference
      event logo
      Webinar: Using passion for ESG to unleash member engagement

      This webinar will look at how pension schemes can harness their members’ interest in ESG to engage them more broadly with their pensions. In particular, it will look at exclusive research showing how members are reacting to ESG; their propensity to act versus their actual behaviour; and the expectations they have of providers in this regard.

      • Date: 26 Jan 2021
      • Webinar
      event logo
      Webinar: What to put on your GMP Equalisation project roadmap for 2021

      This webinar will bring together views from actuaries, lawyers, administrators, trustees and data experts to look at the pragmatic, collaborative solutions that are open to schemes to solve the GMP equalisation challenges in 2021. It will assess the individual challenges schemes face with equalisations and provide some practical options that are available to resolve these issues.

      • Date: 02 Feb 2021
      • Webinar
      event logo
      Webinar: Will the world return to normal in 2021?

      In this webinar, PP editor Jonathan Stapleton will be joined by BMO’s chief economist Steven Bell and director of fiduciary management, Christy Jesudasan, alongside PTL trustee director Melanie Cusack and Isio’s head of fiduciary management oversight Paula Champion to discuss the significant impact of these themes on the pensions sector.

      • Date: 04 Feb 2021
      • Webinar
      View all events
      Follow our Professional Pension Events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • How DC schemes can gain exposure to different asset classes in a low-return environment

      So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

      Download
      Pension freedoms three years on

      In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

      Download
      Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Spotlights
  • Digital Edition
Professional Pensions
Professional Pensions
  • Home
  • Admin/Tech
  • Benefits
  • Buzz
  • DB
  • DC
  • Diversity
  • Investment
  • Law & regulation
  • Risk reduction
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
  •  

    You are currently accessing ProfessionalPensions via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
 
  • Defined Contribution

DC members with diverse needs

  • Lynda Whitney
  • 17 February 2017
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

Aon Hewitt's Lynda Whitney considers the differing needs of three generational groups

It might be stating the obvious, but every person is different, whether due to age, gender, salary or the way they like to receive information. You need to allow for this variety of expectations and needs. The Aon DC Survey 2016 gives some ideas about how scheme requirements may typically differ depending on the profile of your members.

Millennials/Generation Y

• Aged broadly 18-34

• May be paying high rent or high house prices and paying student debts, so saving is tough

• Have grown up in a period of vast technological development and depend on their technology

• Feel retirement is a long way off.

alt=''


The 2016 Aon DC Survey found that millennials have the weakest understanding of pensions out of all the generational groups. They need support to understand the impact that lack of saving now would have in the future. 

Members over the age of 55 are half as likely to seek advice as this group - millennials will actively seek out online content. But as retirement seems a long way off, these members are unlikely to want to look ‘under the bonnet' of a pension.  They expect you to get the default investment option right for them.

Generation X 

• Aged broadly 35-54

• Are balancing saving for retirement with other costs while also trying to maintain work/life balance

• May have already accumulated some pension savings

• Are likely to be more aware of retirement, but it still seems a long way off.

The Aon DC Survey 2016 found that less than half of people now expect to retire by 65. But given their expected retirement age, are members on track to maintain their standard of living? Have you analysed your scheme membership through a tool like Aon's DC Analytics to see if members are falling short? 

At this stage, communication to this group could be on what a member is currently contributing, how that impacts their pension and how they can get back on track.

As this group are a little more engaged in pensions, some members may want to have more control of their investment strategy through access to self-select funds. However, for the majority they still need the default to be right.

Baby boomers

• Aged over 55

• Are approaching retirement and are probably at their most engaged with pensions

• Have probably accumulated a variety of assets, want to make them work for them and to understand their options.

The Aon DC Survey 2016 shows that 23% of 55 to 64-year-olds still do not know what they are going to do with their DC funds, which suggests that some of this age group do not understand their options, even at a high level. This group needs communication focused on explaining the decisions that need to be made. The next steps are vital with so many more options now available. 

Although some of this group are happy to use technology, the Aon DC Survey 2016 found that unlike the younger millennials, this group was far less happy to go online for information. Paper statements and phone support should still be used with them - alongside online tools - so that members can access information in a way that works for them.

For investment, once the member has decided how they wish to access their benefits, a strategy that targets that outcome while reducing risk can be designed by the scheme.

Men are from Mars…

Women answered ‘don't know' more frequently than men to many of our questions. They appear to be less confident about making pensions savings decisions and they are looking for support both from family and friends and from their employer.  They need the ability to access information in a variety of ways so they can share it with someone they trust.

In summary, you need to:

• Be aware of different groups of members within your scheme and their needs;

• Segment your communications to focus on the priorities of different member groups; 

• Use a variety of media so that members can access information in a way that works for them; and

• Have an investment strategy that works for each member as they progress through their lifetime.  

If you would like a copy of our DC Member Survey or to find out more about how to meet diverse member needs, visit aonhewitt.co.uk/dcpensions, email [email protected] or call us on 0800 279 5588

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Defined Contribution
  • Aon Hewitt
blog comments powered by Disqus
Back to Top
Trustpilot

 

  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading