Better collaboration across the pensions industry is key to improving engagement, according to the Pensions Policy Institute.
The research institute published a report, What could effective engagement look like, today (February 15) which found low levels of engagement hinder people making informed choices about retirement.
Lauren Wilkinson, senior policy researcher at the PPI said: “While increasing engagement is a key focus of both government and industry, a significant proportion of the population are unlikely to achieve positive retirement outcomes under the current system without changes to engagement strategies and consideration of other mechanisms.
"These mechanisms are needed to support those who are unlikely, unable or unwilling to engage, or unlikely to achieve positive outcomes through engagement alone.
"The approach that is appropriate, be it engagement-focused or other policy levers, differs according to individual levels of financial capability and openness to engagement.
"Developing a better understanding of the range of needs and the varying capacity for engagement across the population is vital to the goal of delivering positive retirement outcomes for as many people as possible."
Wilkinson said the industry needs to build consensus on its key goals for engagement, including the best practice for data collection.
She also said clear language should be used in communications across the industry and a standardised method for measuring engagement could go some way to people having better retirement outcomes.
A designated taskforce for engagement, including the government and industry representatives, could help address this engagement challenge, added Wilkinson.
The campaign has been sponsored by Standard Life, Aegon, Punter Southall, Royal London and USS.
Kate Smith, head of pensions at Aegon said: "It’s a great starting point for the pension industry and policymakers to build on when it comes to the thorny issue of pension engagement."
tara.o'connor@ft.com
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