106 Communications - Pensions

Putting pensions in a different light 106 Communications

106 Communications is a specialist communications agency, helping to improve engagement, retention and recruitment through the people brand experience TM . Bringing together the best of comms, brand and psychology, we are focused on delivering strategic impact. We work with a wide range of organisations. We have specialist skills. Research | Strategy | Design | Copy | Psychology | Project Management | Digital | Events | Analytics We have three values that guide the way we work. GO FOR IT | THINK BIG | HAVE SOME FUN

106 Communications wants to help members see the benefits of their pension, now and in the future. To see pensions in a different light. 106 aims to make pensions more accessible by demystifying the complexities of pensions and using clear and concise language. 106 believes that good pensions communications relies on considering the motivations and perceptions of a diverse group of people, particularly at different stages in their lives and careers. 106 always looks to employ a rich mix of psychology and creativity to ensure that any pensions communication rises above the humdrum and gets the attention it needs. CLEAR CONSIDERED CREATIVE

Pensions communications should be seen in a different light. Pension communications are a unique opportunity to empower members to consider what they’re working towards. A Penfold report from 2022 found that 90% of employees saw pensions as the main benefit to stay with a company. Through effective communication, members can maximise the benefits at their disposal, which helps to improve employee retention and engagement.

Pensions communications can be complex 1. Balancing burden of responsibility between members and employer 2. Driving motivation to contribute early and adequately 3. Lack of financial literacy and financial planning 4. Diverse needs of members, particularly at different life stages

People want to save ( 82% of people like to feel in control of their finances). Current earnings NOT a factor in decision-making. Visualisation of the future (30%) and regularly viewing expenses (26%) motivated mid-lifers most to take their pensions more seriously. Life events are good engagement prompts. People are neutral on opt-in generally ( 77% of employees have a pension because of it) but are negative about changing contribution amount. Short term budgeting regularly affects plans to save. Young people often in more precarious financial situations; but even small contributions can make a big difference. BUT people don’t feel they are in control (only 18% in same survey). Opting in makes people feel like pensions are the company’s responsibility. Women are more concerned about pensions savings then men ( 82% women reported low/ no ownership vs 65% of men). NOT IN OUR CONTROL PENSIONS COMMUNICATIONS HAVE TO TAKE IN A RANGE OF FACTORS. LEAN INTO THE MOTIVATORS WE ARE SAVERS THINKING LONGER TERM EVERY LITTLE HELPS NOT ABOUT THE MONEY IT’S NOT ME. IT’S YOU. GENDER SPLIT TAP INTO LIFE EVENTS HARD TO CHANGE HABITS

Pensions can seem inaccessible Pensions are often in the headlines but what individuals can do can get drowned out.

Members invariably don’t see pensions as a priority “ Auto-enrolment means most people haven’t taken any positive action towards saving for a vague outcome... It’s no wonder that achieving a sense of ownership is a challenge.” Mark Pemberthy , Benefits Consulting Lead at Buck

Members have growing sustainability expectations Research from Scottish Widows shows that 72% of employees believe it’s important that employers invest their pensions sustainably.

THE INDUSTRY IS STARTING TO EMBRACE AI There are a number of areas where AI could have huge benefits in the future: Technology – chatbots, communications, information could all be aided by AI. Systems – potentially transforming the administration of pension schemes. Data – from governance to insight, AI can help deliver even better data. However, there are significant risks – especially if you rely on AI or ChatGPT to create communications.

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.

From insights to results Our approach is simple. We build insights, and then use these insights together with our comms, psychology and brand expertise, to create the strategy and toolkit to deliver the best possible results. We always have a multi-channel approach, to ensure that we can reach a diverse range of people, in a way that suits them.

Workshops A workshop with the key stakeholders in the Pensions, Rewards and Comms teams – together with other interested parties – helps to establish the key challenges and starts to plot the best solutions. Prior to the workshop, we would need: • Understanding of current pension schemes and communications • Engagement and research data relevant to pensions and rewards • Demographic outline of workforce • Information about the strategic objectives A key part of the workshop is to understand any particular emphasis on key areas, such as sustainability; or any future focus on AI or similar.

Personas and comms mapping Here we aim to understand the different stages and motivations of employees’ pensions journeys. Retirement affects colleagues in different ways and we would look at the workforce demographics and how best to engage them including: • Early and junior talent who aren’t encouraged to think that far into the future • Emerging talent who might be starting a family or settling down • Mid-lifers who are taking stock of the future • Those ‘soon to retire’ that need to look at their choices (decumulation) It will be important to consider the DE&I of the member demographic, and what implications that has on engagement.

Pensions communications multi-channel toolkits Each organisation has distinct goals, and we want to help them realise them. This includes creating unique toolkits that help you talk to your different audiences, according to your brand voice and context: • Communications plan to deliver over the next year and beyond • Content that speaks directly to our audiences • Creative assets to suit your digital platforms and workplace • All aligned to your pensions and engagement goals

Accenture Case study With over 10,000 employees across the UK and Ireland, Accenture has a large pension commitment. We worked with them to help members better understand the options open to them with the company’s pension scheme, as well as think about what contributions they could make now. The communications covered a range of different channels - direct to home, email, intranet, screens, giveaways, and much more - all focused on encouraging members to ‘make your pension your priority’. We asked members to think about other everyday priorities - whether buying food, going to the gym, watching football or going to see a film. The illustrative style gave it a distinct and consistent identity. The campaign initially ran over a 3-month period, to ensure all members made the right decision by the deadline.

Roasties? Mash? Or Lump Sum? Make your pension your priority. Lorem ipsum dolor sit amet, consectetuer adipiscing elit aenean commodo ligula eget dolor. Aenean massa futureproof-yourself.com Accenture Pensions Awareness campaign Launch Email

Bag for today. Pension for tomorrow. 12 DAYS left to make your choice. Sort out pension. F ill in timesheet. Complete expenses. Go to the gym. Check Facebook. Watch Strictly. Make your pension your priority. Act now to secure your future. Make sure you choose your pension from 7th Jan to 5th Feb. Pasta? Pilates? Or Pension? Make time for your pension. Recent legislative changes now mean pensions can offer more flexibility than ever before. That’s why we have made some changes to our Accenture Retirement Savings Plan (ARSP), offering a wider variety of investment approaches and options for you. Find out more at ... Your pension in your hands. Your pension in your hands.

Roasties? Mash? Or Lump Sum? Make time for your pension.

The award-winning communications agency If you want to put pensions in a different light, contact Henry@106comms.com or call +447801235241