Defined contribution (DC) pensions have transformed the retirement landscape, shifting the burden of responsibility from employer to employee. But this transition has meant that the quality of a person’s retirement increasingly depends on how engaged they are with their pension.

And yet, most people are either unaware of their pension’s value, or avoid it entirely. This is why the idea of engagement (accompanied by well-considered defaults) is so crucial to many Britons future financial security.

In our latest research with Quietroom, we explored the evolving toolkit of member engagement strategies, and what really works in practice.

ESG fails to connect

We first looked into this in 2018, in our report on responsible investment. Back then, many thought environmental, social and governance (ESG) would be the golden ticket to unlocking member interest.

But while ESG content has had some traction, particularly with younger, more investment-aware members, the truth is more nuanced. Most members still don’t know their pension is invested, let alone care about the carbon footprint of its holdings.

That doesn’t mean engagement is a lost cause. Far from it. Today’s schemes are finding more targeted, effective, and human-centred ways to connect with their members.

Let’s start with education. As Smart Pension head of client communications, Richard Goldring, explains, the most-watched video in their app simply answers the question: “Why should I save into a pension?” If schemes are to engage people meaningfully, they must start with the basics, and keep the content short, relevant, and accessible.

Beyond education, timing is everything. LifeSight has developed a model of perfectly timed communications, contacting members 15, 10, five and one year before retirement, nudging them to consider key decisions like contributions, retirement date, and income options.

Smart Pension sees spikes in member activity when annual benefit statements are released, an ideal moment to plug in useful tools like their app or calculators.

Digital tools are transforming how members interact with pensions. From Smart’s pre-filled app features to LifeSight’s “ageOmeter,” which answers the all-important question, “At what age can I afford to retire?” These tools remove friction and give members a sense of control. But they work best when paired with human touch.

Restoring confidence

As Paul Watson, formerly of Australian superfund Hostplus, puts it, “confidence is the key to a dignified retirement.” His anecdote about a hotel housekeeper receiving personalised guidance, after being turned away by high-street advisers, reminds us that real engagement still requires empathy and human connection.

Some schemes are blending digital and human perfectly. Natwest Cushon’s chatbot-style adviser “Iris” offers real-time, personalised help, powered by humans, but styled as a friendly AI. This hybrid model proves you don’t have to choose between technology and human warmth. The most successful schemes use both.

Engagement also means recognising that members are not all the same. Different life stages demand different approaches. Young savers may benefit most from contribution nudges; older members may need help consolidating pensions or preparing for retirement income decisions.

Gender differences also matter: Smart Pension reports that 83 per cent of pension transfers are initiated by men. Clearly, a one-size-fits-all model isn’t good enough.

No single solution will bridge the engagement gap. But with the right tools, timing, and tone, schemes can meet members where they are, and guide them to better outcomes.

The goal isn’t to make every member a pension expert. It’s to help them feel confident that someone is; and that they have access to that expertise when it matters most.

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