Has pension scheme member support finally reached tipping point?

The connected member experience is upon us. We look at why employers can and should expect more from pension providers.

At Royal London we recognise the workplace is changing rapidly, and employees now expect more than ever from their pension providers. In an era where people shop, bank, learn, and communicate in a digital-first world, immediacy, personalisation, and seamless connectivity are now the norm. Employees naturally expect the same standards for their pension.

Historically, the pensions industry has been slower than other sectors in delivering intuitive digital experiences. But that’s no longer the case. Stronger digital and behavioural expertise, better data enablement and deeper pension scheme member insights mean providers can now offer experiences that are more joined-up, timely and genuinely useful – a truly connected member experience.

Combining highly personalised communications with integrated and accessible financial help services, it’s no longer an aspiration for the future, but rather a present-day reality - an essential part of any modern workplace reward and wellbeing strategy. Whether online, through human interaction, or both, a truly connected member experience helps employees who are pension scheme members act with confidence to improve their long-term financial resilience.

Why is a connected experience so important for members?

For many employees, their workplace pension remains one of the most valuable yet misunderstood benefits. The gap between having a pension and engaging with it is often significant - research shows only 36% of people with a defined contribution pension are on track for retirement¹. This can be due to lack of financial knowledge, confidence or even the sense of control and direction required to make the most of pension savings.

These challenges can mean members missing critical moments to act early enough, or making decisions without understanding how pension choices link to their wider financial situation.

So what does a great connected member experience look like?

The very best experiences share three qualities – support that is broad, effective and integrated.

Broad support

Options matter. The type of support needs to suit your employees’ situation, their goals and the moment in time. From core communications, timely nudges and calls to action that encourage action, through coaching and planning that offers the human touch to help people understand their options, to Targeted Support – a new regulated form of financial assistance that provides clear, actionable recommendations to help employees make financial decisions with more confidence. At the top end sits the gold standard – personal, financial advice tailored to an employee’s specific needs.

Effective support

The difference between these options isn’t just the type of help offered, but the ability for them to improve member confidence and likelihood to take action. Basic nudges may be reassuring for those with a high degree of financial confidence – but only a step towards another type of support for those more hesitant, or lacking knowledge. Information and planning services will inspire confidence for many, helping members understand their options and future outlook. Targeted Support, estimated to potentially benefit 21.5 million people², will offer more actionable support with a point in time recommendation, reflecting needs and goals. While personal advice remains the deepest form of support, because it reviews individual circumstances to identify what is best for that person.

Integrated support

Great experiences make it easy for members to move easily between types of support, as part of one connected journey. Data flows seamlessly between them, so each interaction builds on the last – providing relevant support at each stage and at the right time.

How does it work in practice?

Broad, effective and integrated support only matters if it happens in the moments members actually make decisions. Let’s consider what good could look like for supporting members to prepare for retirement:

1. Identifying and engaging at the right time in their life – often earlier than they may assume. Inviting them into the experience through an app or online account with personalised engagement journeys through timely prompts, simple language and clear calls to action.
2. Encouraging members to create an initial retirement plan so that they have a clear picture of ­how they’re positioned. This needs the right level of detail for their life stage - enough to be meaningful rather than overwhelming.
3. Prompting them to refine the detail of their holistic retirement plan. Targeted Support, offered digitally, can help members make the plan more detailed and specific to their needs. This may include planning with their partner, if applicable, and incorporating any other savings and properties.
4. Offering further coaching or financial advice when it’s most likely to help - for pension scheme members who want reassurance or help making the plan actionable, an optional digitally enabled trusted coaching conversation could build confidence, answer questions, and increase readiness to act. Where needs are more complex or further hands on support is required, a fully qualified financial adviser can provide the most bespoke support.
5. Encouraging them to take action - ­members could then implement their plan through digital ­action journeys, supported by people where needed. Importantly, the experience should bring relevant data from the plan so members don’­t have to start again, and the support feels joined-up and easy to action.
6. Prompting members to keep their plan updated with ongoing reviews to help them stay on track and update assumptions as circumstances change. Proactive communications, for example, during market events or key milestones, would help members feel supported without needing to seek out information.

This type of ­connected experience allows members to enter the journey at different points, get the level of support that suits them, and move forward without repeating steps. Done well, it turns pensions and financial planning from a once-a-year interaction into an ongoing accessible experience that helps people make better decisions, earlier and with more confidence.

What does this mean for employers? 

The message is clear - employers are encouraged to expect more. Committed and capable pension providers have the tools, regulatory permissions, and technology to deliver a joined-up digital experience that drives real change and better financial outcomes. For employers, embracing this shift can mean: 

• A more financially resilient workforce
• Stronger engagement with benefits
• Support that aligns with modern expectations
• Reduced pressure on HR teams through streamlined journeys
• A more compelling employee value proposition.

And all of this can come at little or no cost and effort for the employer. So choosing a provider today, is about more than just charges, default funds, and service benchmarks. It’s equally about the ability to deliver connected, outcomes-driven experiences that provide quality financial support.

Conclusion

A connected member experience is now the benchmark for workplace pensions. With Targeted Support accelerating the shift to more personalised, actionable help, and digital ecosystems becoming more intuitive and integrated, employers have a new opportunity to enhance financial resilience of their employees at scale. 

Those who push pension providers to raise their game here will not only strengthen their benefits offering but also help their employees build the confidence and resilience needed for long-term financial resilience.

Sources:

¹ Higher auto enrolment contributions, pension adequacy and economic outcomes report, Oxford Economics, March 2026

² Royal London consumer research with UK adults, February 2025

A version of this article was first published in REBA.