Nearly two-thirds (60%) of Telegraph Media Group’s pension members said they would not have contributed additional voluntary contributions (AVCs) to their pension if it had not been for personalised communications about the option.
In February 2014, the newspaper group sent out a personalised newsletter to the 1,000 members of its trust-based defined contribution (DC) pension scheme.
The newsletter, which was developed with Shilling, included a range of tailored personalised financial information relevant to each member, including their current savings, as well as estimates of the difference staff could make if they started paying more now or delayed paying more until later.
As a result of the newsletters, the Telegraph Media Group saw a 53% rise in the number of pension members making AVCs and a 30% rise in the amount of AVCs paid into its pension scheme.
A follow-up survey was sent to the pension members who had taken action, in order to find out what it was about the initial communication that drove members to increase or start making AVCs for the first time.
The survey identified that 60% of members would not have contributed if not for the newsletter, with two specific points driving members to take action: seeing how much it would cost them to start or increase their contribution in pounds and pence; and the impact of saving money now, as opposed to delaying the decision for a few years.
Dipak Wadher, pensions manager at the Telegraph Media Group, said: “For many years The Telegraph [Group] has produced pensions communications of a high design and messaging standard.
“By adding data to creative output, Shilling has helped to tailor our messaging to individuals, making their options clearer.
“It’s great to see the immediate and positive impact the personalised communication has had on our members.”