Pension schemes are placing renewed focus on deferred member engagement, as trustees recognise its role in supporting data quality, governance, retirement outcomes and endgame planning, according to Trafalgar House.

The specialist third-party administrator noted that deferred members have often been the least visible part of scheme memberships, but warned that poor engagement can create challenges for schemes further down the line.

It added that improved deferred member engagement can also support trustees by strengthening administration, improving confidence in decision making and increasing readiness for future projects, including endgame activity.

Trafalgar House senior client relationship manager, Katie Stone, said: “Deferred should not mean disconnected, yet for many schemes deferred members have often been the least visible part of the membership, but that is beginning to change.

“For many schemes, member engagement naturally and understandably took a back seat while resources were focused on major projects such as GMP equalisation, pensions dashboards preparation, data cleansing and risk transfer activity.

“What we're now seeing is a growing recognition that deferred member engagement supports far more than communications - it strengthens member records, improves outcomes and helps schemes prepare for future strategic projects.”

Stone observed that deferred members were often where scheme records “begin to weaken”, with outdated addresses, missing beneficiary information and incomplete member details creating issues later on.

She suggested that re-engaging with deferred members earlier could help schemes maintain better data, reduce administrative friction and ensure members are better prepared when key decisions arise.

“Retirement is no longer a single event and hasn’t been for a while; it is a journey,” she continued.

“Members who understand their benefits earlier are typically far more confident, better informed and able to make decisions more effectively - this leads to better outcomes.

“Good engagement is not about sending more communications, but about providing the right information at the right time.”

Stone concluded that trustees should consider when they last engaged with deferred members, whether key member information is up to date and whether communications are helping members prepare for retirement long before they reach it.

“Small steps taken today can prevent much bigger challenges further down the line," she said.

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