The retirement and pension industry has been slow to digitally revolutionize, says GlobalData. The leading data and analytics company notes that with simplicity and customer experience coming to the forefront of the wealth management space via technology, utilizing emerging technologies to manage pension services will be welcomed by customers.

Sergel Woldemichael, Wealth Management Analyst at GlobalData, comments: “As the rest of the wealth management industry digitalizes to attract the next generation of investors and broaden access to more customers, the retirement space must adapt too. With more and more examples of players adapting to this change, those who do not join will suffer consequences.”

In a digital world where people live on their smartphones, individuals expect seamless services and experiences, how, when and where they want them. GlobalData’s 2021 Financial Services Consumer Survey showcases that, no matter if an investor is already retired, in full-time employment, or self-employed, a multi-channel communication experience is in demand. Therefore, pension providers should not ignore the need for personalization from a communication perspective. Clients want to be able to access the support they need when and wherever they need it. A lack of options would turn heads to other providers.

Woldemichael continues: “GlobalData’s survey conveys more than half of retired investors globally do favor traditional players to manage their investments, however, there is still a large chunk that would prefer digital players and the customer experience they bring to the table. So, traditional players should not be resting on their laurels assuming that only the millennials are keen on new digital wealth management services. Despite not being digital natives, the older generation are not all that shy of technology.”

Positively, there are examples of both the old guards and digital players developing retirement services despite many players yet to focus on doing so. Charles Schwab offers a compelling hybrid multi-generational retirement service. UK digital pension provider Pension Bee has more than doubled assets under management (AUM) in the past year and robo-advisor Nutmeg offers both pension and will services.

Woldemichael adds: “The need for seamless and personalised services is growing, and meeting this need is key for longevity. This too goes for players pension services. Wealth managers who are able to introduce engaging digital retirement services, with one that is cross generationally focused, will prevail.”

Providers must remember that advising clients in retirement age is just as important as ensuring they still hold onto the wealth being passed down or inherited by the next generation too.

Woldemichael concludes: “Having a full circle service is key, one that keeps the next generation satisfied, as well as the current generation. It also goes without saying that cheap services with positive returns will keep clients at bay too.”