New pre-retirement member engagement strategy
Member engagement is one of the greatest challenges for the pensions industry. Looking to address and improve this here at Legal & General, we're pleased to confirm the next stage in our ongoing strategy to urge WorkSave Pension Plan and Mastertrust Sole Governance members to review their investment choices will commence from July.
Stakeholder, Group Personal Pension 2000 (GPP2000) and Own Trust are excluded at the present time but remain under review.
Believing a combination of written prompts and a compelling online experience will encourage more savers to get involved with this important part of their financial planning, we will be writing to all members as they reach age 50 (or 10 years to selected retirement age, whichever comes first) and again as they reach 4 years to retirement.
The letters are designed to jolt members into action by:
- Reminding them of their selected retirement age.
- Explaining the options for accessing their pension pot.
- Confirming their current investment strategy.
- Prompting them to review their investment strategy depending on how and when they plan to access their pension pot.
The 4 year letter also recommends they contact Pension Wise or speak to a financial adviser before making any decisions.
Both letters urge members to engage with their pension by registering for and using our online services which include a sophisticated retirement planning tool that lets members explore:
- The options available when accessing their pension pot via an annuity, drawdown or occasional cash lump sums.
- The potential impact of changing their retirement date, investment strategy or contribution levels.
- A range of possible investment outcomes.
Prompting members at key milestones to take action and demonstrating the variety of our online tools, we're confident we can persuade more people to start making active choices about their pension.