Speaking yesterday morning at the National Association of Pension Funds (NAPF) Conference in Liverpool, Geoff Day, employee communications manager, Standard Life, told delegates: "The road to hell is paved with good intentions and I don’t think employers are getting the most out of their traditional methods of pensions communications.
"We need to make sure we engage with staff in a way they understand. Generation Y [born after 1982] now make up a larger demographic than Generation X – and saving for a pension is not something they are naturally going to do. We need to help them make the decisions that are right for them. Nowadays the people you hire are going to have a financial millstone around their necks – and you need to use peer groups to promote pensions in a way that is relevant to them.
"Social networking is not just a matter of youth – it can totally topple social norms and it is indicative of how the world is working. It is time we moved into the 21st century."
Day suggested employers use an "internal Facebook" so staff can discuss pensions with each other.
"Some people might put negative posts," he added. "But these will happen at the water cooler anyway. It’s better the employer knows what is being said."
In the same session, Vincent Franklin, creative director at Quiet Room, which recently produced a pensions education film for the NAPF, added: "We will not be ready to educate staff on pensions until they are engaged with pensions.
"At the moment, we just keep giving them facts and hope they will change their minds about long- term savings. Employers do not have all the answers for staff, so it is better to share responsibility and ownership of pensions.
"Auto-enrolment is coming in two years. It was seen as an outrage when it happened in Australia – so it is time for us to have a conversation with our staff here in their own language and frame the discussion we want to have."
