This little conundrum is the question facing the National Employment Savings Trust (NEST) over the next few months. On 1st October, a new era of retirement saving will begin as workers are automatically enrolled into company pension plans without fail. You can opt out if you wish, but the hope from the Government is that two thirds of people won’t.
Now let’s get to the crux of the issue shall we? “Pensions”, “Saving” and “Retirement Planning” are all very dull, very unsexy words that most people the young side of 50 have little interest in discussing or thinking about.
The number of reports, press releases and speeches from companies and politicians on the yawning savings gap in the UK is enough to form a paper road to the moon. But it still makes little difference to savings rates, as was highlighted this week.
So, back to the question: how is NEST enticing 8m potential new pension savers to stay in their pension plans and not opt-out as soon as they can? Well, hats off to them. With restricted budget, they’re going hell for leather with an upbeat message, emphasising the joys of a later life spent in relative comfort. This is neatly summed up with the hashtag
What’s pleasing to see is that they’ve avoided the old-school approach of just producing reports, surveys and general doom and gloom. We have the classic PR tactics like these in the mix, but they’re supported by a strong social media programme. Together, for me, it makes quite a package.
Will it work? It’s too early to say and we won’t really know for two or three years when most people will be auto-enrolled. Expect the papers to jump on any data showing high opt-out rates in big companies from December onwards. NEST and the Government are also clearly a little nervous, with rumours of an additional TV advertising campaign in the mix. Still, at this point, fair play to them.