Members can benefit from the use of psychology The use of behavioural science helps to give members the nudge to take action. Siemens used the ‘nudge’ technique to encourage employees to increase their pension contributions. By creating 21 different communications for their 15,000 workforce, they were able to get the majority of their employees back on track to meet 100% of the DWP target. Plus they saw an increase of 500% in engagement with financial education. There are different ways to frame pensions communications, such as: SAVINGS More traditional pensions communications warns that the minimum amounts may not be enough for a comfortable retirement. Focuses on pensions as a savings vehicle. INVESTMENT AND RULE OF THUMB Pensions are framed as an investment, rather than saving. Includes rules of thumb about the power of saving early – e.g., ‘a pound saved at age 25 could be worth 4 times as much as a pound saved at age 55’. LABELLED AMOUNTS In this case you explain that X% is needed to stay above the poverty line, and most will need Y% for a comfortable retirement. The calls to contribute X% and Y% are labelled the ‘minimum’ and ‘comfortable’ amounts, respectively. FUTURE FOCUS The comms ask people to reflect about their life after work. The communication itself also asks the reader to pause and think about the future, and notes an extra £X a month now may mean they have up to £Xx2 a month more in retirement. This framing is important in helping members to understand what it means for them; and through testing, we can see whether different framing is more effective with different groups.