Supporting the NHS Pension Scheme to drive more positive pension decisions

Requirement

NHS research shows that 40% of pension scheme members rate their understanding of their pension benefit as poor or very poor.As part of our contract to lead the development of a communications and engagement strategy to engage with 2.8 million NHS Pension Scheme members, we were tasked with seizing opportunities to create an evidence base for wider change within NHS Pensions communications. NHS Pensions is a complex landscape, with many cross-government stakeholders involved in communications and campaign approvals. These include NHS England, NHS Employers, the Department of Health and Social Care, the Government Legal Department, and the NHS Business Services Authority, to name but a few. To support our creative team to manage and deliver complex projects with many moving parts for NHS Pensions, we allocated a dedicated project manager to ensure timings and tasks were delivered seamlessly. We hold twice-weekly stand-ups to keep progress on track and allow early sight of potential risks and issues, giving us an opportunity to present mitigation strategies in a timely, efficient way. The two examples below demonstrate how we have applied our methodology and capability to creating an evidence-based case for communications across NHS Pensions.

Example 1 - Encouraging sign-ups to NHS pensions seminar to retain more staff in the NHS

The NHS Pension Scheme is a significant part of an NHS workers’ benefit package, but 40% of members rate their understanding of it as poor or very poor. With growing pressure on the NHS workforce, our clients, the Department of Health and Social Care and NHS England, understood the need to explain this valuable benefit.

As a result of low levels of understanding, staff weren’t making the most of the options they have when they come to retire, contributing to the NHS retention crisis. To complement out wider work with NHS Pensions, we were invited to create a letter to encourage staff to sign up to and book a digital pensions seminar and engage with an online learning platform (via a QR code).We developed simple, clear,one-page letter that put the incentives of flexible retirement front and centre to motivate action. The letter went to 380,000 over 55s, and within hours of the first letters landing, all 4,500 seminar spaces were taken, resulting in the need to create more to cope with demand.The flexible retirement online portal received90,100 visits and the flexible retirement video was watched 44,000 times within the first 4 months.In the 11 months since the campaign launched, more than 15,000 people have chosen flexible instead of full retirement, retaining vital skills within the NHS for longer.  

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Example 2 - Overcoming present bias to get members to prioritise their long-term financial wellbeing

This was a particularly challenging campaign. The required message was incredibly complex: due to a government change, some pension scheme members were eligible for a refund of pension contributions. The average refund was c£8,000 if members were to take it today. But if these members wait until they retire, they will have more options open to them, including taking the cash back, and their overall pension will be worth more. If they can afford to wait, it’s the best decision for their financial health. The legal and technical restrictions for this communication meant we had some significant challenges to overcome:

• We could only communicate via a single letter, supported by some online FAQs.  
• Limited print capability means we couldn’t use colour, visual devices, or icons to guide people round the information.
• We were limited to a 2 page letter, with numerous message required to ensure the communication stood up in law.
• Present bias – while we could tell people the amount they are owed today, the capability didn’t exist to calculate what this refund would be worth if they waited until retirement. People are overwhelmingly likely to favour the immediate reward of a sizeable amount of money than wait for a ‘mystery’ amount later on, years in the future.

Our approach

We applied our EAST methodology and a number of behavioural science techniques to give the communication the best chance of steering members towards an informed financial decision:

• We structured the letter into two sections to ease the mental effort required: the context and the choice.
• We used clear headlines and subheadings to create a clear ‘scan story’ to help members understand this is a personal message rather than a general ‘FYI’ ·
• We put the options in the order most likely to benefit members and used clear framing and bullet points to help them easily understand the impact of each choice.
• We signposted to a webpage which held examples, based on the average £8,000 refund amount, to help members understand the potential future value if they chose to wait

Results

Based on their knowledge and understanding of members’ past behaviour in similar circumstances, NHS Pensions were concerned that this legally required message would lead members to choose the immediate refund rather than their long-term financial wellbeing. They anticipated the rate of members requesting immediate refunds would be up to 70%. But by applying our methodology, the actual rate of immediate refunds requested was 25%, with 75% of members choosing to wait until retirement instead.

“Acuity’s understanding of behavioural science and its application to communication strategies was evident from the start. They excel in translating complex pensions information into clear, concise messaging which resonates with our customers and drives meaningful engagement. The team are highly professional, personable and easy to work with.  They took the time to understand our unique challenges and objectives, crafting a tailored approach that not only addressed our immediate needs but also provided long-term value which we have embedded into our business-as-usual activity. I highly recommend Acuity to any organisation looking to improve their communication strategies through an understanding of human behaviour.” _{Julie Murphy - Client Engagement and Compliance Senior Manager, NHS Business Services Authority}