We can support you through the whole process, from understanding the options, developing communication strategies and supporting quality outcomes.
Helping members make the right choices
The numbers cashing in DB pensions has soared since freedom and choice in April 2015. Roughly twice as many people transferred in the first year alone and momentum is increasing.
Schemes and sponsors have a crucial role to play supporting members with their retirement options.
Members remaining in DB or transferring must do so on an informed basis, with access to quality advice to ensure the decision is right for them. Whether they stay or transfer to a more flexible arrangement, there are huge risks members could make poor decisions with a life-changing and life-long impact.
Everyone's different. What retirement choice suits one person may not suit another so quality education and advice is key.
Not only are trustees and employers uniquely placed to help members make the right choice when making one of the biggest financial decisions of their life, it’s a natural extension of their moral duty to protect members.
Help your members make good choices
How to support and protect DB scheme members with the complex choices available post pension freedoms, and to do so in a way that's appropriate to your scheme and your members. As a Trustee, providing your members with the right support to help them understand their retirement options is key. You will also want to manage the risk that members challenge you for a lack of quality information to help them make the right retirement choices.
We give you confidence members are making the right choices in a safe environment, and help you understand the full spectrum of options available to your scheme and members.
Giving your members the right support
Scheme members have unprecedented levels of choice in deciding how to shape and provide for their retirement. Individuals need the right support to avoid the risk of them making poor decisions and holding it against the scheme or sponsor.
By giving members more information on their choices and removing hurdles to accessing quality financial advice, more members will make retirement decisions that are right for them. This will accelerate a scheme's de-risking journey, removing liabilities from the balance sheet at lower cost than insuring them. Where employers facilitate the advice process, member uptake will be improved. We can help you develop the right solutions to maximise member engagement and impact.
Due to the additional choice and complexity introduced by the Pension Freedoms, Essar Oil (UK) Pension Scheme (a client of Hymans Robertson for a number of years) wanted to support their employees and help them make better retirement decisions. They wanted give them access to relevant and timely information which could help them make the most appropriate decision for their circumstances.
After considering a range of options, Essar Oil chose LV= Pension Compass. It is a dedicated and secure online platform full of useful information and personalised tools that support with the engagement and education of members in relation to their retirement choices. As well as benefiting members, this solution benefits Trustees and Sponsors by helping their members make better retirement decisions as well as reducing risk.
18 months on from the Pension Freedoms it is great to see the development of solutions such as this for supporting DB members to take better retirement decisions.
David Lowe - HR Operations Manager, Essar Oil UK