The concept of pensions puts people off engaging with the subject of saving for retirement, according to think tank the Pensions Policy Institute (PPI).
The institute's report, titled Consumer engagement: lessons from overseas, suggests an alternative to going on about pensions is to start communications on the basis of long-term financial planning.
The report gathers examples of best practice from all around the world including The Netherlands and the United States, Brazil and India.
One successful event is Pension3Days, a Dutch initiative and national event that takes place over three days every October.
It is aimed at providing consumers with an overview of their personal pension situations, the amount of pension available, elements that make up retirement income and to prompt them to take responsible behavioural action.
It involves more than 250 organisations and the specific activities include workshops, debates, plays and other interactive activities.
The public can meet with pension providers, employers, financial advisers and official partners at the event.
Engagement, automation and compulsion are also identified by the Pensions Policy Institute as different ways of encouraging consumers to save.
One of the first examples of automatic escalation was in the US and was titled the Save More Tomorrow (Smart).
There were three implementations of the program at different organisations. Results indicated that a high proportion of those who were offered the plan decided to join it, and that the majority of those enrolled remained in the plan through to a fourth pay increase.
The average saving rates for participants increased over a time frame of 40 months.
Priya Khambhaita, senior policy researcher at the Pensions Policy Institute, said: “The UK has a lot to learn from international examples.
"This research found that pension engagement campaigns are far more effective when they vary in format, channel and delivery method between groups, directly match the target population’s existing financial and digital literacy levels, and are phased, consistent and sustained over time."
Tom McPhail, senior analyst at Hargreaves Lansdown, said: "The UK needs a coherent, joined up policy to promote savings and investments.
"The Financial Advice Market Review is not going to close the advice gap; too many teenagers are leaving school without the necessary financial capability to make well-informed savings decisions and the pensions system is becoming increasingly complex, punitive and hard to engage with.
"We should learn from overseas experiences and adapt those lessons to suit our domestic context."
Tom Selby, senior analyst at AJ Bell, said the PPI's report was a valuable contribution to the debate on communicating with retirees.
He said: "Clearly automatic enrolment has begun to turn the tide in getting people - and particularly younger generations - to save in a pension. Initiatives such as auto-escalation could also play a role but improving engagement so people have the confidence and understanding to take control of their own retirement is absolutely critical.
""Complexity and a lack of trust that the goalposts won't be moved by government remains a significant problem and whoever wins power at the election on 8 June should attempt to put this right by forming an independent pensions tax commission.
"Such a commission could recommend what, if any, reforms are needed and then commit to a period of stability for advisers and savers.
"With that solid foundation in place, savers would feel more confident to engage with pensions and save for their retirement."
stephanie.hawthorne@ft.com
