Aegon shares plans to extend the Retiready experience to the workplace giving employees a digital pension dashboard
24 March 2015
- Retiready digital experience now overlays Aegon’s workplace solutions giving employees a simple online overview of all their savings in one place
- Advisers will be able to offer employers the next generation of workplace solutions including a digital employee engagement service, a flexible wealth savings platform and integrated pension freedom solutions
- Advisers and employers can still benefit from the award winning Workplace Aegon Retirement Choices platform and a range of tools designed to encourage employee engagement
- Just 11% of people currently manage their pension online and Aegon believes this has contributed to the situation whereby just 6% of the population are on track for the retirement income they want
Today Aegon announces its plans to extend the Retiready interface and tools across its workplace proposition as part of a strategy which puts digital service at the heart of its business.
Almost 26,000 members on Workplace Aegon Retirement Choices (ARC) will be able to see the value of their workplace savings with Aegon through the Retiready interface from the end of April. They’ll also be able to add and consolidate other pensions and ISAs, giving them a complete picture of all their savings brought to life visually on the page through a “stack”, all in one place.
An employee’s workplace pension will feature in this stack alongside other pension and savings products, so an employee will be able to see at a glance, the value of their workplace pension in the context of their overall retirement plans.
They can also generate a score to show them how on track they are for the retirement income they’d like.
Retiready allows employers to offer their staff the latest employee digital engagement service to help them get on track for retirement regardless of where they currently are on their retirement journey. Employers will benefit from all of their employees understanding the value of their overall financial benefits package, which in turn can lead to improved retention, loyalty and employee outcomes.
In addition, employers will continue to benefit from the ARC platform that enables them to auto-enrol staff, manage contributions and choose from a range of pension funds. By adding the Retiready interface they will be improving their employees’ pension experience.
Advisers will be able to provide employers with an innovative digital service and a flexible wealth savings platform with integrated pension freedom solutions. Advisers can directly engage with those employees who might want to take up their personal advice services, safe in the knowledge that Retiready will provide a retirement preparation service for those who would rather look after their own retirement plans.
By the end of the year, Aegon will have provided all workplace customers with the Retiready experience - giving it to those on Workplace ARC is the first step.
In the next few months, Aegon will also launch a premium service called Smart Governance. This digital reporting tool aggregates workplace scheme data about member behaviours and helps employers understand how much their workforce is saving by identifying groups that are potentially under or over saving and targeting them with information on steps they could take. It will give employers the confidence that they’ve done all they can to help their employees prepare for retirement, while also meeting their scheme governance responsibilities.
About the Retiready service
Retiready was launched in April 2014 as a digital service for non-advised consumers. The award-winning service is available on tablets and mobile devices and allows users to get a complete picture of their pension savings while calculating how on track they are to achieving the retirement income they’d like. Since launch, nearly 30,000 people have generated a unique Retiready score to find out how ready they are for retirement.
The need for digital service
Just 11% of people manage their pension online, compared to 84% who bank online. Aegon believes the days of an annual paper pension statement are numbered and employers have confirmed they view digital engagement as a necessity for their staff and customers. In the FCA’s Retirement Market Income Study published in December, the regulator recommended the introduction of a “Pensions Dashboard” that would allow individuals to see all of their retirement savings in one place, and Aegon views the extension of the Retiready interface as its digital pensions dashboard.
Aegon believes that a lack of online accessibility has contributed to the fact that:
- just 21% have checked the performance of their retirement savings in the last six months;
- just 17% have taken a proactive step to manage their pension in the last six months;
- as a result only 6% of the population is on track for the retirement income they want.
Angela Seymour-Jackson, Managing Director for Workplace at Aegon UK said:
“We believe Retiready leads the market as a digital pension service and we wanted to extend the simple interface and powerful tools to all of our new and existing customers in the workplace."
“Technology is the key to empowering people to take control of their financial futures. It’s used every day for current accounts, ISAs, credit cards, mortgages – why not pensions? Engaging with your pension aged 50 or 60 is too late. People need to keep track of their progress from the moment they start saving for retirement so that they have a clear picture of what their savings will be worth at the point of retirement. By giving people access to their pension on their mobile and tablet we hope to encourage far greater engagement with retirement and reverse the current situation whereby just 6% of people are on track for the retirement income they want."
“While there’s still a need for annual statements, they’ve contributed to the detached behaviours customers demonstrate towards pensions. In the fast paced digital world, customers won’t only need instant and regular access to valuations, information and savings and retirement planning tools, they will expect it. These tools and services are key to facilitating better member outcomes through member engagement. The user experience that Retiready for the Workplace provides goes a long way to meeting some of these expectations in the workplace."
“Employers are focused on offering good value DC pensions and recognise that unless people can be encouraged to save, soon we may see the situation where employees are unable or unwilling to retire. By extending the Retiready interface and the tools it offers, employers and their staff will benefit from a more engaging pension which can be managed online. Workplace ARC has been used successfully to set-up almost 500 schemes and manage employer contributions, we’re continuing to add to the service by improving how employees see and manage their savings.”
Introductory film: Retiready in the Workplace
Here is a short film to take you through Retiready in the Workplace: https://vimeo.com/114769338(Opens new window)