Together with our research partner Nest Insight, we’re taking a deep dive into the world of auto-enrolment in the UK to ask whether better uses of language can help people in their mid-working life understand what their pension saving means for their retirement income
Download the reportLast year, in our first piece of research in partnership with Nest Insight, we highlighted the importance of helping members of auto-enrolled pension schemes make a clear connection between the pension saving they do today, and the income they’ll get when they retire.
This year, in our latest study, we’re taking a generational leap forward to members midway through their careers – also known as the ‘squeezed generation’ – to consider what choices they can take in mid-working-life to help make a difference to their retirement outcomes.
In Small Steps, we speak to 9 industry experts, 65 Nest members and over 1,500 UK pension savers to understand the barriers to retirement income planning for people in their late 30s, 40s and early 50s, and identify the steps that can be taken to help them overcome them.
Our research uncovers some surprising detail on which barriers are preventing people in their mid-working-life from engaging with their pension at this critical time in their lives.
By changing the way you frame retirement with language, you can help shift emphasis away from the barriers and reinforce positivity:
Helping people work from what they know, to understand the gap they need to close.
Breaking it down into manageable and meaningful actions and showing the difference each step could make to a retirement income.
Build confidence by emphasising what they have, including the State Pension and any existing pension pots.
When asked before and after reading the messages developed in this research, significant increases were seen in the proportion of people who said they were likely or very likely to take action in the next six months:
In Small Steps, we speak to 9 industry experts, 65 Nest members and over 1,500 UK pension savers to understand the barriers to retirement income planning for people in their late 30s, 40s and early 50s, and identify the steps that can be taken to help them overcome them.
For professional clients only
In this interactive session, we discuss the findings of our research in more detail. Alongside our expert panel, we showcase some of the key points of Small steps to a better future and consider what they mean for pensions schemes and financial advice professionals.
Established by the UK government as part of its auto enrolment initiative, Nest is one of the world’s fastest growing pension schemes with 8 million members and counting. Nest Insight is a collaborative research unit set up by Nest Corporation to help understand and address the challenges facing Nest members and other defined contribution savers. Working in partnership with industry, academics and policy makers around the globe, their mission is to understand and address the challenges facing defined contribution savers.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
