New research from HSBC Master Trust indicates that one in three employers (34%) believe their defined contribution (DC) pension scheme needs to improve communication and engagement with members across a wide range of features.
Over half (54%) of the DC scheme sponsor senior decision makers surveyed believe that monitoring and measurement of engagement is a key area for improvement. In addition, more than two in five (41%) highlighted the need for interactive member communication tools.
Furthermore, a similar number (38%) pointed to personalisation of member communication and guidance on pension scamming as focus areas for improvement.
The research with 400 senior employer DC decision makers found regular surveys of members and forums for all members or for specific members are the main methods of measuring and monitoring engagement.
HSBC Master Trust asked DC sponsors to rate their scheme across a wide range of communication and engagement features. The table below shows the percentage of sponsors who believe their DC scheme required review across a range of communication and engagement issues.
| FEATURE | PERCENTAGE SAYING THEIR SCHEME NEEDS TO REVIEW |
| Overall member communication and engagement | 34% |
| Measurement and monitoring of member engagement | 33% |
| Provision of interactive member communications tools | 33% |
| Personalisation of member communication | 34% |
| Guidance on pension scamming | 25% |
| Provision of a tailored savings journey for each member | 32% |
| Annual member reviews | 30% |
| Mid-career financial MOTs | 31% |
| Retirement financial health checks | 34% |
| Provision of financial well-being services | 31% |
| ESG focused investment options | 33% |
HSBC Master Trust CEO, Alison Hatcher said: “Deeper scheme member engagement is an important driver of better member outcomes in support of long-term savings and retirement goals. It’s refreshing to see that scheme sponsors believe improvements in member engagement are a clear priority.
“HSBC Master Trust’s vision is focused on innovation with an absolute commitment to serve the evolving needs of employers, pension savers and retired members. Part of that includes a joined-up financial wellbeing and pensions journey for members, including a holistic retirement savings and benefits platform which is digital but backed up by personalised support.”
HSBC Master Trust is delivering significant innovation in the UK pension scheme market focused on digital, data-driven solutions to provide the highest standards of scheme design to ensure long-term member engagement.
Central to the proposition is HSBC Tomorrow – a financial well-being platform that empowers members to take control of their savings with the support of personalised online services, for example: access to open banking, consistent communication; and offers a range of support tools across the savings spectrum – from budgeting to short-term and long-term savings.
Members will benefit from an easy, integrated pensions dashboard, banking services and pension pot consolidation. Member communication features helpful personalised messages and prompts and HSBC Tomorrow includes an intelligent chat device to quickly deliver answers to member questions.
