Can talking about responsible investment drive positive outcomes for pension members?
Date: Wednesday 11 November 2020
Date: Wednesday 11 November 2020
Auto enrolment into workplace pension saving is now firmly embedded in the UK, and has brought millions of workers into saving for retirement for the first time. In recent years, the pensions industry has turned its attention to the challenge of engagement: with saving now a default behaviour, how can we ensure that people seek information and take action when they need to? Read More
Many in the industry are starting to think that the answer to this challenge lies in talking with savers about the impact of their investments as a member of a pension fund. If people are interested in and motivated by environmental and social issues in other areas of their lives, could messaging around those issues in the context of their pension saving get them more involved in financial planning for retirement?
Working together with our programme partner, Legal & General Investment Management (LGIM), Nest Insight has been conducting research to understand whether communicating with members of a pension scheme about the impact of their investments makes them more likely to engage with their retirement account, and crucially, whether doing so has any impact on downstream behaviours such as seeking information, logging into a pension account or changing contribution levels. This first report shares our findings on how this kind of messaging can be most effectively framed and communicated to drive member engagement, and on the demographic differences in how people engage with their pensions after receiving these messages.
Date: Thursday 3 December 2020
The success of auto enrolment means that around 10 million more people are now saving into a workplace pension in the UK. Inertia has clearly been harnessed for good. But the flipside of its power is that people who’ve been auto enrolled tend to be less engaged than those who signed up voluntarily. Read More Today, pension engagement remains a key focus for policy makers and the industry in the UK and beyond. We know that messaging alone is unlikely to improve the long-term financial security of savers, but it has an important role to play. Yet, communications about retirement saving are often still jargon-heavy and they struggle to cut through. And although many industry stakeholders talk about the importance of increasing engagement, they do not always focus on the desired outcomes. Together with our strategic partner Invesco, Nest Insight is working to identify language and message framing that better engages, informs and motivates individuals to save for their retirement to drive a defined positive outcome. In December, Invesco hosted an online event to discuss the findings of the first phase of this programme, which looks at the language around pension contributions. How do people understand pension contributions currently? What are the comprehension and awareness barriers to engagement and action? And how can language and message-framing around contributions be better used to increase the success of interventions designed to help people save the right amount for them in retirement?Speakers
Date: Wednesday 9 December 2020
In the time since Nest Insight announced its sidecar savings trial in 2018, interest in the idea has grown. While it’s too early to draw conclusions from the trial itself, many in the financial services industry and third sector are already vocal in their support for the model, which combines an accessible ‘emergency’ savings account with traditional defined contribution (DC) retirement saving, all through the workplace.
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But what are the views of employers who must play a key role in implementing, communicating and facilitating the savings tool? What’s the experience been like so far for the employers who are participating in the trial? What are the barriers to involvement for those who’ve been interested but unable to commit? And, how has Covid-19 changed employers’ attitudes to supporting their employees to save?
This event marked the launch of the second report in our briefing paper series sharing early learnings from our sidecar savings trial. In this expert panel discussion, we share emerging insights from qualitative research with employers and delivery partners, conducted as part of our overall sidecar savings trial.
Date: Monday 14 December 2020
Nest Insight has been working with the Department for Work and Pensions on a research programme that seeks to better understand the low levels of saving seen among self-employed people and to test a range of approaches to encourage and enable retirement saving.
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From the offset, we’ve known that in order to design saving solutions that work for self-employed people, we first need to better understand their needs and context. For many households, that context has changed as a result of the Covid-19 pandemic.
This new research aims to understand the impact of the current crisis on self-employed people. How have personal finances and savings attitudes been affected? How does this vary across different groups of self-employed people? And what does this tell us about the types of savings solutions they might need? Watch the recording of our panel discussion to hear our findings, and to learn how they are informing the development of the next stage of our research where we will be trialling tools and automated approaches designed to support self-employed people to save.
Invesco became a major strategic partner in July 2019 to help shape our programme of work through sponsorship, the contribution of its deep industry expertise and insights, and by helping the programme to reach a wider audience.
The BlackRock Foundation became a major strategic partner in July 2021, supporting our ambitious research programme to help bring financial security within reach for many more people.
We've partnered with the Policy Institute at Kings College to create a PHD studentship in public policy and behavioural science.
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We're working with MICRA to look at the issue of pensions for precarious workers.
Salary Finance are the fintech provider for our sidecar trial, providing technology to join up payroll, pensions and savings accounts.
Visit partner siteWe're working with IPR, University of Bath, to video interview key decision makers involved in the UK pension reforms.
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We formed a partnership with Aspen FSP to gain in-depth insights into how the UK and US retirement systems can be improved for low to moderate earners.
LGIM support our research into whether communicating with pension savers about the impact of their investments makes them more likely to engage with their account.
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JPMorgan Chase supported our sidecar savings trial. They’re currently supporting our research into earned wage access and workplace loans, as well as our programme of work exploring the interactions between auto enrolment and debt.
We're working with the DWP to develop trials aimed at establishing what works to make retirement saving easier for self-employed people.
The Money and Pensions Service (MaPS) is supporting our emergency savings research programme and working with us to conduct the research. MaPS is also a supporter of our Real Accounts programme.
We're working with Maastricht University to deliver a wide-ranging research programme into the drivers of engagement in pensions.
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We’re working with experts from Warwick Business School to understand the interactions between auto enrolment and wages, savings and debt.
We’re working with Wagestream to trial opt-out payroll savings approaches in UK workplaces.
The Aviva Foundation are supporting the initial phase of the Real Accounts project – a long-term study of UK households’ financial lives.
The Nuffield Foundation is funding work exploring the interactions between pension auto enrolment and other types of saving.
Please note: the views expressed are those of the authors and not necessarily of the Foundation.
We’re working with experts from CPFW on the Real Accounts project – a long term study of UK households’ financial lives.
We’re working with the Co-operative Group to trial an opt-out approach to payroll saving.
We’re working with Experian to understand the interactions between auto enrolment and debt.
We’re working with experts from the Yunus Centre for Social Business and Health on the Real Accounts project – a long term study of UK households’ financial lives.
We’re working with Understanding Society to share anonymised Nest data in an ethical, well-governed way so researchers can better understand the interactions between different aspects of household finances.
Together with experts at Moneyhub we’ve designed a data collection app to capture real-time income and expenditure data for participants taking part in the Real Accounts project.
We’re working with SUEZ recycling and recovery UK to trial an opt-out approach to payroll saving.
We’re working with TransaveUK to trial an opt-out approach to payroll saving with employees at SUEZ recycling and recovery UK.
We’re working with experts from the University of Nottingham to understand the dynamics of household finances.
Phoenix Insights is supporting our work on pensions adequacy and the household balance sheet.
We’re working with Bupa Care Services to trial an opt-out approach to payroll saving.
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