2018年-FCA英国金融行为监管局_occasional_paper_38_47页_1mb

Summary of Occasional Paper 38: Testing retirement communications: Waking up to get wise

Core Content

This paper explores the effectiveness of different communication strategies in encouraging individuals to use free retirement guidance services, specifically Pension Wise, and to engage with their pension providers. The research was conducted by the Financial Conduct Authority (FCA) in collaboration with two pension providers and the Behavioural Insights Team (BIT). The study is based on two field trials, evaluating how changes to wake-up packs (WUPs) might influence consumer behavior during the retirement decision-making process.

Main Factors

• Pension choices are increasingly complex due to the shift from defined benefit (DB) to defined contribution (DC) schemes.
• WUPs are required communications sent by pension providers to individuals 6 months before their retirement date, aiming to inform them about their options.
• Pension Wise is a government service offering free, impartial guidance to help people make informed retirement decisions.
• Consumer behavior in retirement planning is influenced by cognitive biases, including overconfidence, underestimating longevity, and preference for short-term gains.

Main Viewpoints

• Information overload in WUPs may hinder consumer understanding and decision-making.
• Simplified communication can increase awareness and use of Pension Wise.
• Prompting action through clear signposting and structured decision-making elements can improve engagement.
• Reminder effects may lead to short-term behavioral changes, but these may not be sustained over time.

Key Findings

Trial 1: Signposting Guidance

• Treatments tested:

  • Signpost: A prominent signpost on the cover of the WUP.
  • Appointment+Declaration: A one-page insert with information about Pension Wise, a space to record appointment details, and a declaration about not using the service.

• Results:

  • No significant effect on Pension Wise usage or switching behavior.
  • The Signpost treatment increased prompted awareness of Pension Wise by 7 percentage points.
  • The Appointment+Declaration treatment increased calls to Pension Wise by 4 percentage points (from 8% to 12%).

• Demographics:

  • No significant differences in age, gender, or pension pot size between treatment groups.
  • Tenure and gender showed some variation.

Trial 2: A Simple Reminder

• Treatments tested:

  • Standard reminder: A simple signpost to Pension Wise.
  • Appointment reminder: A reminder that an appointment is available.
  • Appointment+Declaration: A reminder of an appointment and a declaration about not using the service.

• Results:

  • The Appointment+Declaration treatment led to a 4 percentage point increase in calls to Pension Wise (from 8% to 12%), a 50% relative increase.
  • The simple signpost increased calls by 8% compared to the control.
  • No significant effect on switching or other engagement measures.
  • The reminder effect increased engagement in the short term (first 4 weeks), but this effect disappeared over the full observation period.

• Comparative Insight:

  • BIT's trials showed that reducing the volume of information in WUPs to a single page (Pension Passport) increased calls to Pension Wise by 9.8 percentage points.
  • This suggests that simplified, focused communication is more effective in prompting action.

Conclusions

• Simplified and focused communication increases awareness and use of Pension Wise, but has limited effect on switching behavior.
• Reminders can prompt short-term engagement with pension providers, but this does not translate into sustained behavioral change.
• The declaration element in Trial 1 helps shift decision-making from omission to commission, increasing the likelihood of using Pension Wise.
• The study supports the idea that disclosure has a modest impact on consumer behavior, but reducing complexity can lead to better engagement and informed choices.

Key Information

• Total sample size: 3,028 participants in Trial 1 and 4,000 in Trial 2.
• Control group received standard WUPs with no changes.
• Data sources: Administrative data, customer call records, and surveys.
• Outcomes measured:
  • Use of Pension Wise.
  • Engagement with pension providers.
  • Switching between providers.
• Statistical methods: Clustered standard errors, confidence intervals, and robustness checks using survey participation as a control.

Final Notes

This research contributes to the broader understanding of how behavioral nudges and simplified communication can influence retirement decision-making. It highlights the importance of clarity, salience, and active engagement in encouraging individuals to seek guidance and make informed choices about their pensions.