The pensions industry still has a “long way to go” to engage schemes and members with their pensions journey, research from Trafalgar House has suggested.

Trafalgar House's report found that whilst the most important factor for building trust with the public remains better communication, many pension scheme members are still reluctant to engage with a digital pensions journey.

The research showed that, “encouragingly”, nearly half 49 per cent) of respondents believe they would be happy to retire online to some degree – with 17.4 per cent very likely and a further 31.6 per cent fairly likely.

For those who remained hesitant, the biggest reason was the desire to talk things through with another person, with 53.3 per cent stating this as the most important factor.

Whilst some have suggested that hard copy communications were on the way out, the research suggested that this is not so, as 37.8 per cent had a preference for hard copy papers alongside any other form of communications.

Trafalgar House also pointed out that, despite becoming increasingly prevalent in many daily interactions, the pensions industry is yet to integrate new AI or chatbot technology into its communication processes.

As such, members remain either non-committal or negative on this topic, as only around one in six people would be happy to engage with chatbots whilst interacting with their pension provider, whereas 38.9 per cent would prefer not to use this technology and 24.4 per cent will not use it at all.

Commenting on the findings, Trafalgar House client director, Daniel Taylor, said: “Whilst the results definitely show there is a broader acceptance of technology beyond simple online communications, it’s also clear that a large proportion of members are not yet ready to say goodbye to older, more traditional ways of communicating, even if newer and more innovative methods are available.

“This is likely linked to the broader ongoing mistrust of the pensions industry. With people willing and able to complete other important life defining financial transactions online – such as mortgages, loans, and investments – there’s no reason why pensions shouldn’t be the same unless it’s down to an underlying issue with the industry itself.

“Digital innovation offers a promising avenue for achieving greater clarity and a significant portion of members are open to engaging digitally with their pensions, attracted by the enhanced speed and accessibility of online, mobile and interactive pensions.

“What’s also clear is that diverse approaches are vital, and the industry must continue to cater to various member needs - a single approach won’t work. Members want flexibility in the way schemes communicate and engage with them and to save and retire in a way that suits them.

“Digital services not only integrate pensions into everyday financial management but also align the industry with already prevalent mobile banking and broader digital financial services.

“The support, or at least the interest, for improved digital tools is evident and its incumbent on us as an industry to leverage from that and to turn this to reality. A little less talk, a little more action.”

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