Thinking about future pensions, today

The challenge

It was Babcock’s interest to seek to ensure that employees and former employees yet to draw their pension benefits were provided with access to a structured toolkit that enabled them to make an informed decision on what to do with their retirement pot. This informed decision included having an understanding of:

  • the benefits available and the options available from the DB scheme;
  • understand all of the options available and their financial implications; 
  • the income actually needed in retirement to meet their fixed and discretionary spend;
  • the financial consequences in the event of the employee’s death, and
  • the tax consequences of taking certain decisions.

The solution

Mercer developed a full communication toolkit for Babcock's employees to assist them in making an informed decision, with access provided to active, deferred and pensioners. The online portal was integrated with the Trustee website, an e-learning platform and incorporated personalised and targeted messaging, as well as a dashboard demonstrating how a member could take their pension from age 55.  

The toolkit covered a number of different areas; e-learning to support planning for retirement; access to final advice; educational content; a personalised employee dashboard to show the Transfer Value for those over 55 and how they could take their money plus of course printed and face to face communication support.

The results

The online toolkit was launched in November 2017 and supported with a range of on-the-ground financial education workshops provided through JELF.  Feedback at the workshops has been extremely positive, and over 100 members in March alone contacted the administrators to ask for a transfer request.

Mercer continues to send out personalised nudges to categories of members to keep the momentum going.