Management Consulting
Aon
Full Credential Description
After the introduction of the 'Freedom and Choice' pension reforms in 2015, there was a significant need for tools that could assist defined benefit (DB) members in making informed decisions regarding their retirement options. The challenge was to enhance member engagement with these tools and ensure that individuals could effectively navigate their pension choices. To address this, Aon evaluated six years of engagement data from approximately 40,000 members using the Aon Retirement Options Model (AROM). This model provides a straightforward side-by-side comparison of retirement options, allowing members to explore which choices best fit their personal circumstances. The analysis revealed that members predominantly engage with pension tools during working hours, particularly on weekday mornings. This insight suggests that employers could benefit from offering financial wellbeing and pension education sessions, as employees are more likely to consider their pension options while at work. Additionally, the data indicated that members value continuous access to online tools, with usage occurring at all hours of the day, highlighting the importance of providing ongoing support. The findings also showed that members prefer using PCs and laptops over mobile devices for managing their pensions, indicating a serious approach to their financial decisions. On average, members logged into AROM four times, demonstrating a pattern of 'little and often' engagement. To facilitate this, it was crucial to ensure an easy user journey, such as pre-loading members' pension data. Engagement rates varied significantly across different clients, ranging from 20% to over 80%, emphasizing the need for a proactive communications strategy to promote the tool effectively. In summary, the tailored solution provided by Aon through the AROM tool not only improved member engagement but also offered valuable insights into member behavior. The continuous support and easy access to information have empowered members to make better-informed decisions regarding their retirement options, ultimately enhancing their financial wellbeing.