UK - Employers need to spend time and money on communication to increase take-up rates in defined contribution plans, Winterther Life says.
The DC provider says employers should learn from the US experience and its 401k plans.
This shows that providing face-to-face education meetings with scheme members can boost take-up rates by over 12%.
Corporate pensions consultant Lorraine Fraser said: “Other media such as videos, IT software and printed literature can also add value.”
Fraser believes the industry needs to educate two issues in particular – asset accumulation for the new generation of employees, and asset disbursement for those planning for or already in retirement.
“As a DC industry, we have to be clear about who adds value, where, when and how,” she added.
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point