Less than two-thirds (60%) of pension decision-maker respondents do not measure the success of pensions communication campaigns, according to research by Capita Employee Benefits.
Its Pension scheme insight report 2016, which surveyed 110 pension decision-makers, also found that more than half (56%) of respondents do not believe that pension scheme members understand how their pension scheme works.
The research also found:
- 43% of respondents cite improving member engagement and education as a major challenge facing pension managers and trustees over the next year, 36% view processing requests following the pension freedoms as a major challenge, and 18% name pensions liberation scams.
- More than three-quarters (77%) of respondents name legislation and regulation as the main reason why they communicate to pension scheme members, 64% communicate to explain the retirement options available to members, and 58% communicate in order to encourage members to take greater control of their pension.
- More than half (55%) view communications as a means of improving members’ perception of benefits.
- 45% of responders expect their defined benefit (DB) pension scheme to experience some form of de-risking or be on the path towards this in the next five years.
- 62% of respondents have not seen any pension scam cases over the last 12 months, and 22% have seen between one and two cases.
- 16% of respondents enable members to opt for a combination of annuity, cash and drawdown.
- Less than a fifth (18%) of respondents view auto-re-enrolment as one of the main challenges facing pension managers and trustees over the next year, and 13% cite ongoing auto-enrolment issues as a challenge.
Robin Hames (pictured), head of marketing and research at Capita Employee Benefits, said: “What’s abundantly clear from this year’s Pension scheme insight report is that the task of running a pension scheme is not getting any easier.
“In last year’s report there were five challenges that pension managers and trustees felt stood out; this year respondents highlighted at least eight serious challenges.
“It is clear that cost and resource, or more accurately managing cost and resource, remain very pertinent issues.”