When we talk about "digital revolutions", we often think about its impact on millennials and those from generation Y. However, the digital revolution also has an impact on the older generations, particularly those of pension age. Whereas traditionally technology has bypassed pensions and focused on other parts of the financial services industry, it has now reached the forefront of thought, and is beginning to change the way that some pensioners manage their money and their pension. Here, we'll look at why digital is the next step for pensions.
Trapped in a World of Paper
It couldn't be simpler than ever for people to check their current account's balance these days. You can do it online in a matter of seconds, or even on a mobile app. For most customers nowadays, you don't even need a password, and can just use your fingerprint to sign-in. Once you're in, you can transfer cash, make payments, check a balance or even upgrade your account.
However, pensions accounts are still trapped in a world of print and cumbersome treks to the branches. So, what can we do to change it? Well, the FCA has been urged to do a lot to bring pensions into the smartphone age.
Investment in Technology
However, insurers are beginning to pour money into pensions, bringing them into the 21st century. It is hoped that the move will help to engage those of the younger generations who are yet to take up pensions options.
In short, pensions companies must get with the times and drag their offering from the stone age and into the digital age, adding apps, PINs, fingerprint recognition and other forms of technology for mobile customers.
What Does the Future Look Like?
The government hopes to create a "digital dashboard" which will allow a saver to access all of their pensions in one place, allowing them the same form of online access they expect from other forms of financial services.
In recent years, interactive tools such as retirement income modellers and calculators have been made available to pension customers. While companies such as Bestinvest also introducing online platforms so that customers can apply for a SIPP online or read eBooks. However, some companies are looking further into this, particularly at how they can further engage younger potential customers, such as gamification.
To conclude, the digital revolution has often bypassed pensions. However, now, the government and leading companies are ready to invest so that pensions can keep pace with current accounts and online banking.