Industry Voice: Aon member options survey — the trend for member support continues

clock • 2 min read
Kelly Hurren
Image:

Kelly Hurren

New research shows around a third of schemes are providing or shortly planning to provide their members with additional support with their retirement decisions. In the current high inflation environment, feedback from pension schemes is that this support is more important than ever.

Aon's 2022 Member Options Survey shows the upward trend for member support continuing with 49% of schemes providing their members with transfer values in retirement packs. Whilst 17% of schemes are providing members with transfer values figures only, 32% are providing additional support through online modellers and/or access to professional advice. This has been a continuing trend since Aon's 2018 survey.

Where financial advice is available to members, two thirds of members are provided with fully paid-for advice which is funded either by the trustees or the sponsor. Almost 90% of schemes planned to review their appointed IFA regularly, of which 40% had a governance structure in place to do so annually.

Kelly Hurren, Partner and Head of Member Options at Aon says "Since 2018 we have seen an increasing trend in schemes supporting their members with their retirement decisions and in the current high inflation environment, demand for this support is higher than ever. We are now seeing only a very small proportion of schemes choosing to include only the minimum statutory requirements within their retirement packs." 

Hurren continues "To supplement the survey, results from a recent poll showed 50% of scheme representatives said their biggest concern was that pensions would not cover increases to their members' living expenses. It is really important that members fully understand the options with which they are presented at retirement, how these fit with their overall financial situation and how they can vary in future so they can make fully informed retirement decisions. Good support is crucial to members being able to do this".

The survey also looked at GMP equalisation from a member perspective and showed that, irrespective of the method of equalisation, one third of schemes were using GMP equalisation as an opportunity to review their retirement processes and improve the options or support that members receive at retirement. 

Kelly Hurren said "Aside from the efficiencies of making these changes at the same time, and given that retirement processes need to be updated for GMPs anyway, this combined approach also brings value to members through additional choices and understanding, in what could otherwise be viewed solely as a compliance exercise."

View all of the key findings from Aon's 2022 Member Options Survey here

This post is funded by Aon

More on Communication

No consensus on timing of pension choices comms

No consensus on timing of pension choices comms

The industry has differing views on when choices should be communicated to members

Holly Roach
clock 01 August 2022 • 2 min read
'Carrot and stick' approach to engagement is redundant

'Carrot and stick' approach to engagement is redundant

Cushon says schemes cannot hide behind old methods of member communication

Hope William-Smith
clock 15 March 2022 • 1 min read
Martin Lewis: The face that launched 13 million emails

What did someone with 13 million subscribers tell the pensions industry about engagement?

Martin Lewis founded Money Saving Expert, a website that has since built up an email following of 13 million people, after investing just £100 in a website at the beginning of the millennium. But how has Lewis achieved such cracking engagement? And what...

Jonathan Stapleton
clock 13 October 2020 • 4 min read
Trustpilot