Pension providers should utilise modern technology to provide easier access to pensions and help consumers save by making it easier to keep track of the status of their pension as currently, 35.4% of UK individuals under state pension age have never reviewed their pension, according to GlobalData, a leading data and analytics company.
Danielle Cripps, Insurance Analyst for GlobalData comments: “Pension providers must use technology to build tools consumers can use to understand how much they have saved, and how much more they need to save to achieve a desired income and quality of life in retirement. There is more providers could be doing to engage with customers, in addition to waiting on the development on the pensions dashboard
Aviva for instance, recently launched a pension skill on Amazon Alexa which will allow customers to easily check their pension value. Providers should also develop apps which will make checking pension value as easy as checking a bank account.
Cripps continues: “Open banking has great potential for pension saving. It has allowed banks to become one-stop shops for other products and services, which is something that pension providers should take advantage of.
“More pension providers should develop APIs which will allow customers to view their pension savings alongside their bank account. This means that customers will be more likely to check their pension value more frequently, making pensions an increasingly visible part of their financial landscape.”
Pension providers could also learn from saving apps. Fintechs are helping consumers save by focusing on short-term, day-to-day spending, for instance rounding up transaction values and putting it into savings or using artificial intelligence to determine how much consumers can afford to save per month and putting it away for them.
Cripps adds: “There is an opportunity for pension providers to adopt similar thinking and form partnerships with such companies to grow pension pots.”
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Notes to Editors:
– Data taken from GlobalData’s 2017 UK Life & Pensions Survey of 4,000 respondents
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