People’s Pension has urged the pensions industry to rethink how it engages savers, warning that traditional efforts to spark interest in retirement saving are failing to address adequacy concerns.
Kirsty Ross, proposition director at People’s Partnership, provider of People’s Pension, warned that the industry is at real risk of sleepwalking into another generation of under saving.
“If we continue to approach pensions adequacy with the same thinking and the same tactics, we shouldn’t be surprised when we get the same disappointing results,” she said.
Therefore, she urged the industry to “break the cycle of failed ideas” and begin experimenting with new forms of engagement.
This is crucial to secure the retirement future of Gen Z, the youngest generation in the workforce and the group most likely to opt out of workplace pensions, despite having the longest time horizon to build retirement savings.
But fresh approaches are needed to engage this generation, as the traditional “tried and tested” methods are no longer effective, according to Ross.
People’s Pension has embraced this challenge, actively rethinking how it connects with younger savers and experimenting with innovative ways to capture Gen Z’s attention.
“We have made the decision to expand our repertoire and find new ways that cut through using things we know Gen Z actually like. That means hijacking popular culture, partnering with people they watch and listen to and being in public places where we’re impossible to ignore,” she said.
Last year, it launched a national advertising campaign highlighting differences in pension provider ownership models.
By using ‘fat cat’ imagery to call out shareholder-owned firms, the campaign sought to underline its not-for-profit positioning and reported a 35% increase in brand relatability.
Through its ‘Pension Drop’ campaign, People’s Pension trialled placing pensions messaging in unexpected environments to reach audiences who may ignore traditional provider communications.
The initiative began with partnerships with lifestyle social media content creators, introducing pensions content to new audiences and achieving above-benchmark engagement compared with similar influencer campaigns.
The concept has since moved offline. In December, the provider distributed 3,500 pension-themed Christmas crackers at London’s Victoria Station. More recently, it handed out 3,000 Valentine’s Day cards at Brighton Railway Station, featuring a pensions-themed love poem encouraging recipients to show appreciation for their “future you”.
However, it cautioned that one provider acting alone is not enough, meaningful progress will require change across the entire industry.
“We can’t do it alone. That’s why we’re calling on the industry to join us, be bold, try something different and find what can truly get people excited about pensions. Only then will we have the opportunity to meaningfully address the adequacy challenge and change the retirement fortunes of a whole generation of savers,” Ross said.