Pensions industry should use tech to sustain the savings boom

Pete Hykin

Pete Hykin

These features are not just gimmicks. They provide instant gratification for the ultimate delayed gratification product: a pension. Big technology companies have long known that an immediate reward is the best way to form and reinforce habits (just look at the addictive nature of social media).

The pension industry can use the same principles for a far more worthy cause: helping people keep up the saving habits they have built throughout the pandemic.  

What is more, harnessing technology to better engage with customers has become table stakes, and instantaneous service is simply what consumers have come to expect.

In today’s Uber culture, they are no longer willing to wait for annual paper statements, or sit on the phone for 45 minutes simply to amend a monthly direct debit. Managing your pensions needs to be as easy as managing your Monzo or Starling account. Otherwise, providers will fail to maintain the share of wallet they have enjoyed over the past year.

When it comes to the fallout from Covid-19, financial security for everyone is likely to be unpredictable for some time. So while we are seeing an unexpected rise in pension engagement right now, the government and the industry cannot afford to be complacent and must take steps to build on the momentum we have seen.

Pete Hykin is co-founder of Penfold