Legal & General (‘L&G’), the largest DC pensions provider in the UK, is enhancing its at-retirement proposition with digital guidance to help deliver better outcomes in retirement for its 5.3 million DC workplace members.
Today’s retirees face the challenge of navigating complex financial decisions in order to choose the retirement options that are right for them. Weighing up the income needed for the retirement they want is a difficult decision.
L&G’s digital guidance is based on member insight, data analysis and behavioural science and centres on simple, individualised support: crucial to help counteract low levels of understanding, engagement and financial confidence in pension savings. It will help members achieve their retirement goals by proactively nudging and engaging them with tailored support.
A holistic financial view within the journey will allow for each person’s full range of assets to be considered while a flexible approach will enable the income solution to evolve as the saver’s retirement evolves too. By knitting together all finances to build a fully rounded view, the digital guidance encourages members to review potential shortfalls in income.
These factors, underpinned by regulated guidance in future years, will ensure better retirement outcomes for DC savers whether in their early retirement or later years.
Bernie Hickman, Chief Executive Officer, Legal & General Retail commented: “The way people understand and engage with their retirement needs to be transformed so they can have better outcomes. Our new At Retirement digital guidance will be accompanied by both a chatbot and phone-based support as well as access to financial advisers. It is based on deep insights into how people think, act and behave when it comes to their retirement, so we can serve our 5.3 million DC Workplace members even better.
“Factors such as multiple income sources, the risk of outliving savings, accounting for market volatility and managing spending over the long-term must be considered. Retirement income needs to be sustainable across the course of a saver’s lifetime to ensure longevity and avoid a ‘cliff edge’ in savers’ later years.”
L&G manages £176 billion in DC assets under management (AUM) on behalf of 5.3 million members1. The firm has the largest commercial Mastertrust in the market, with over £27.7 billion in AUM2.
