Pension communications are not landing and giving scheme members the confidence to plan for their retirement, despite demand for support, Like Minds has warned.

The pensions communications agency, which is part of Independent Governance Group (IGG), found that 44 per cent of members cannot recall receiving any pension communications over the past 12 months.

Of those who can remember receiving pension engagement, just 21 per cent took the action the communication prompted.

Like Minds’ research, which surveyed over 2,000 workplace pension scheme members, showed that 72 per cent of respondents felt they understood their pension.

However, 61 per cent wanted to learn more, and just 53 per cent felt confident in planning for their retirement.

The agency said this indicated that pension communications were not meeting the demand for support and pointed to a “serious” pension confidence gap.

It highlighted that members wanted communications to feel relevant to them, and building confidence was not simply about providing more information.

Although 71 per cent of members believed communications should be designed around their lives, needs, and circumstances, only 50 per cent felt the communications they received met the needs of people like them, while 40 per cent said they felt tailored to their own circumstances.

Like Minds argued that employers were well placed to provide the personalised support members were seeking, due to their proximity to and knowledge of the scheme membership.

Additionally, 42 per cent of members said they would turn to their employer to learn more about their pension or retirement.

“The pensions confidence gap is one of the primary issues plaguing our sector and will continue to loom as an impending disaster if not properly addressed,” said Like Minds director, Jeremy Petty.

“Members are clearly eager to learn more and engage with their pension schemes and retirement – giving us a real opportunity to close the gap through better support and connection.

“Members are not asking for more communications for the sake of it. They are asking for communications that feel relevant to their lives, answer the questions they have at different stages and help them understand what they should do next.

“Good pension communications should do more than explain pensions. They should help people understand what their pension means for their future and turn understanding into confidence and action.”

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