DC and Financial Wellbeing conference

Heidi Allan, Principal and Head of Financial Wellbeing, LCP

Heidi’s breakout session was focused on the psychology of money and how employees think and feel about making financial decisions.

Employees will react in different ways to the same information depending on their emotional state. This can be visualised in terms of whether that person is more emotional or rational and whether they are experiencing high or low levels of stress/anxiety, which is fluid and can change during the course of the day. This highlights the importance of communicating to members in a way that is emotionally safe with straightforward actions. Heidi noted that tailoring communications for neurodivergence just makes them more accessible to all cohorts and removes the need for segmented communications.

The latest financial wellbeing report indicates that 74% employees were experiencing financial stress, whilst 1 in 3 have less than one month’s savings. This is important context in terms of how members might prioritise their short vs long term savings, such as pensions.

Aside from reviewing communications, Heidi noted that employers can use a confidence building tool such as anecdotes from peers, ensure pension journeys are easy with good processes in place to support members, and keep messaging consistent across the scheme whether it’s coming from the provider/company/trustees. Using personalisation where possible is also a key tool for driving up engagement, which can often be done through the provider in the form of video benefit statements.

Georgina Smith, Partner, LCP, Ellen Wallace, Associate Consultant, LCP and Olasumbo Biobaku-Mason, Head of DC Member Proposition, L&G

Georgina and Ellen, joined by Olasumbo Biobaku-Mason from L&G, explored how schemes can prepare for a changing retirement landscape. With the targeted support regime now in force from April 2026 and the Pension Schemes Bill having completed its journey through Parliament, the discussion covered both the practical actions schemes can take now and the unanswered questions that remain for trustees and providers on default retirement income solutions.

Olasumbo drew on L&G’s member engagement experience and data to show how earlier and more personalised engagement can lead to better outcomes and why understanding the characteristics and needs of a scheme’s own membership is key to designing effective support.

The session’s central takeaway was that schemes should start preparing now in the areas that are already clear, while ensuring their approach remains flexible as the market and regulatory framework develop.

Alasdair Mayes, Partner, LCP and Jessica Clayson, Principal, LCP

Jessica and Alasdair explored how employers can future-proof their benefits strategy against a backdrop of changing workforce demographics, evolving employee expectations and a shifting pensions and tax landscape. The session focused on both the longer-term trends shaping benefit design and the practical actions employers can take now to ensure their arrangements remain fit for purpose.

They highlighted that a one-size-fits-all approach is becoming increasingly difficult to justify and that employers should be considering whether their current pension and benefits offering is aligned with the needs of their future workforce as well as their current one. The discussion also examined the legislative and policy changes likely to affect benefit design over the coming years. This included possible developments arising from the revived Pensions Commission and planned tax changes, including the planned inheritance tax treatment of unused defined contribution pension funds from April 2027 and the cap on salary sacrifice National Insurance savings from April 2029, both of which could have implications for employer cost, employee behaviour and benefit design.

The central takeaway was that, while some uncertainty remains, employers should start preparing now by reviewing and stress-testing their current arrangements, so they are better placed to respond to future change so that their benefits strategy continues to deliver value for both their business and its employees.