Miba Stierman of NMG Consulting shared fascinating insights from their research on targeted pension support.
At our Wednesday Wisdom webinar, Miba talked through how NMG’s findings reveal a significant disconnect between what consumers expect from their pension providers and what they actually receive.
The expectation gap
Miba’s research identified three levels of customer expectations:
- Mandatory support – Consumers believe providers have a duty of care to prevent obvious harm. This includes warning about tax implications, unsustainable withdrawal rates, and investment risks at retirement. Many customers were genuinely shocked to learn providers don’t already do this.
- Good customer service – Think of the “John Lewis approach.” If a sales rep helps you choose the right pan based on a few questions about your cooking habits, shouldn’t your pension provider (who’s held your life savings for 30 years) offer similar guidance about retirement options?
- Marketing territory – Support that has clear commercial benefits for providers, like encouraging increased contributions or promoting specific products.
Support needs vary by life stage
The research found that engagement with pensions follows a predictable curve:
- Early accumulation (under 35) – Low engagement, little interest in targeted support
- Mid accumulation (35-50) – Growing awareness but still limited engagement
- Approaching retirement (50+) – Rapidly increasing interest, especially 12-36 months before retirement
- At retirement – Peak engagement when accessing tax-free cash and setting up income
- Post-retirement – Surprisingly rapid drop in engagement despite ongoing need
The sweet spot for targeted support
The most powerful impact comes at the retirement transition point. People approaching retirement unanimously wanted more help navigating complex decisions about consolidation, product selection, and withdrawal strategies.
Those who had recently retired recognised the value such support would have provided. They also highlighted opportunities to enhance support by considering more personal factors beyond age and pot size.
Why current guidance isn’t enough
Consumers find existing guidance frustratingly generic. As one participant noted, being told “these are the pros and these are the cons” without any direction about which option suits their circumstances is “so generic as to be pointless.”
When faced with this guidance gap, many turn to unqualified sources like friends and family for the direction they crave.
The human element matters
For emotionally charged financial decisions (like cashing in during market downturns or pausing contributions), consumers value having a real person to talk to. Digital journeys need careful design to avoid making people feel judged or guilty about financial decisions.
Where do we go from here?
While targeted support won’t solve every pension challenge, it represents a meaningful step toward bridging the expectation gap. Pension providers have an opportunity to integrate this support into existing communications and journey touchpoints rather than creating separate services.
This research makes clear that consumers don’t see targeted support as a new idea – they’re surprised it doesn’t already exist. As the industry evolves, meeting these expectations will probably become essential to maintaining customer trust and satisfaction.
