Many people still see pensions as distant and complicated - even when those savings are central to long-term financial stability.
Michelle Cracknell has held senior roles at a number of financial services companies and was CEO at The Pensions Advisory Service for years.
On Sense of Identity, she explores how engagement, technology, and customer-centric delivery can help pensions providers connect with savers more effectively.
She is passionate about helping people make the most of their money and helping providers connect and engage with consumers. For pensions firms, the practical question is how to close the gap between what pensions deliver and how savers experience them day to day.
Why Pension Engagement Still Lags Behind The Need
The current pension landscape is challenging. There is a noticeable gap between how pensions are perceived and their importance for future financial stability.
Many people find pensions complex and hard to relate to, which makes long-term benefits harder to see.
Perception, Distance, And Low Engagement
That gap is largely driven by a lack of engagement and understanding. Pensions are often seen as distant, complicated, and not immediately relevant.
When savers experience pensions that way, they are less likely to actively manage their pensions or treat them as part of wider financial planning.
Engagement starts when pensions feel understandable and providers communicate in language savers can use at each life stage.
Providers that close the perception gap early give savers a clearer reason to stay involved before complexity becomes a barrier.
Education, Simplification, And Clearer Communications
Improving engagement depends on making pensions more relatable and easier to understand, as well as on the technology that supports access.
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Education and simplification matter. Personalised, clear, and concise communications can make a significant difference to how people respond.
Providers that explain pensions in plain language, at the right life stage, give savers a better chance of staying informed as circumstances change.
Technology, Pension Dashboards, And The Security Trade-Off
Technology has a clear role in pension engagement, especially where it makes pension information easier to access and act on.
Easier Access To Pension Information
Dashboard-style tools are often discussed as the route to clearer pension information, but the design and trust questions still land with providers.
"Technology, especially initiatives like the pension dashboard, offers a great opportunity. It can provide easier access to pension information and help people see their pensions as part of their broader financial picture."
Initiatives such as the pension dashboard can help savers view pension savings alongside their wider financial picture, but delivery still has to earn trust.
Data Security And Usable Design
"The primary challenge is data security. Ensuring that individuals' pension data is secure and protected is paramount but with this challenge comes another - the need to make pension dashboards user-friendly, encouraging active engagement with pension data."
Protecting pension data and designing dashboards people will actually use are both essential. Security without usability can still leave savers disengaged.
"When pension providers ask savers to view sensitive information online, the experience needs to feel secure and straightforward so people can focus on the pension information itself."
Paul Holland, Founder and CEO, Beyond Encryption (Mailock)
That balance between protection and usability is what turns dashboard ambition into day-to-day engagement.
Customer-Centric Pensions And Long-Term Relationships
The pensions industry is moving toward more flexible, tailored propositions. The boundary between advice and guidance for providers is becoming increasingly blurred.
From Product Push To Customer Needs
Firms need to shift from a product-centric to a customer-centric approach. That means understanding what consumers need and want, then tailoring services without placing too much burden on savers to navigate complexity alone.
The future of pensions is likely to be more flexible and tailored to individual needs. Providers must adapt and focus on customer-centric solutions.
Trust Built Over Life Stages
Long-term customer relationships matter. Consistent, meaningful engagement across life stages supports trust and better financial planning outcomes.
Questions For Pensions Providers
Do savers see pension communications as clear, timely, and relevant to their life stage?
Where dashboards or digital tools are used, is security matched by usability?
Are services designed around customer needs rather than product structure alone?
Those questions sit alongside the wider shift toward more flexible pension propositions and longer-term customer relationships.
Lessons For Savers And Financial Services Professionals
For individuals, a key lesson is to start financial planning early, stay informed, and adapt as life circumstances change.
Building everyday behaviours that support those plans makes long-term engagement more sustainable.
Consumer Duty And Professional Empathy
For professionals, continuous learning and staying abreast of industry change remain essential. It also matters to genuinely understand and empathise with clients in line with Consumer Duty, which can strengthen the service provided.
Firms reviewing how they communicate with pension savers and regulated customers may want to see how secure digital delivery fits alongside existing engagement programmes.
FAQs
Why Do Many People Disengage from Their Pensions?
Pensions are often seen as distant, complicated, and not immediately relevant, which creates a gap between their importance for long-term security and how people engage with them day to day.
How Can Providers Improve Pension Engagement?
Michelle Cracknell points to education, simplification, personalised communications, and technology that makes pension information easier to access and understand.
What Role Does the Pension Dashboard Play?
It can give savers easier access to pension information and help them see pensions as part of their broader financial picture, provided security and usability are both addressed.
What Did Michelle Cracknell Say About Data Security and Dashboards?
Data security is the primary challenge, alongside the need to make pension dashboards user-friendly so people actively engage with their pension data.
Paul, CEO and Founder of Beyond Encryption, is an expert in digital identity, fintech, cybersecurity, and business. He developed Webline, a leading UK comparison engine, and now drives Mailock, Nigel, and AssureScore to help regulated businesses secure customer data.
Paul Holland
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