Our data shows that all workplace pension providers offer some for of member portal, but not all portals are made equal.
In 2019, 73% of Brits used online banking on a regular basis, in comparison to just 30% in 2007 [1]. As more of us get used to managing our finances online, workplace pension providers have been developing online portals to help us better manage our pension savings.
As one in four over-55s rethink their retirement plans, and one in five consider raiding their pension pot [2], easy access for members to manage their workplace pensions is more relevant than ever.
Our data shows that all workplace pension providers now offer member portals. Only one provider charges members for the privilege (True Potential).
Security appears to be an area that has received a lot of attention from some workplace pension providers where their member portals are concerned. Our data shows that whilst a small majority (60%) of portals only require single factor authentication at login, a quarter (25%) require duel factor authentication and 15% require multifactor authentication (more than two).
Passwords (95%) and PIN codes (50%) are still the most common forms to authentication the portals can accept. However, several providers have embraced more cutting-edge authentication technologies and can now accept fingerprint (40%) and/or facial recognition (40%) as a form of authentication.
Over half (55%) of workplace pension providers have developed a secure messaging functionality for their member portal. Only 35% of providers have enabled their members to upload and share documents using these secure messaging systems.
As Brits look to manage multiple products through one system with the advent of Open Banking, many providers (65%) now also include other products and services within their workplace pensions member portal.
The most included products are ISAs (85%) and GIAs (75%).
Many of the providers with a more insurance related background also offer protection and insurance products. Aviva Designer, Aviva My Money, Aviva My Money (Master trust), Legal & General, Legal & General (Master Trust), Mercer Master Trust (Aviva), Standard Life, and Standard Life (DC Master Trust) all offer workplace pension members protection products through their portal.
Aviva Designer, Aviva My Money, Aviva My Money (Master trust), Legal & General, Legal & General (Master Trust), and Mercer Master Trust (Aviva) also offer general insurance products on their portals.
As more employers focus on the mental, physical, and financial wellness of their employees, workplace pension providers have increasingly offered these kinds of services.
Financial wellness services are now common amongst workplace pension provider portals, with 90% of providers offering them. Mental wellness services are also quite popular with 65% of providers offering them on their portals. Whereas physical wellness services have yet to gain much traction with providers with only 30% of providers offering them on their member portal.
In terms of what information about their workplace pension members can see via their portals, the picture for most providers is now comprehensive.
Members accessing the portals for all workplace providers are able to see their policy number, details of their contribution history for the last 12 months, any investment loss or growth to date, current fund investment choice from both a units held and unit price basis, and the relevant fund factsheets for the asset allocation.
The Hargreaves Lansdown portal has the least information displayed. Unlike all of the other portals, it does not show selected retirement age, estimated/projected fund value at retirement, estimated/projected annual pension at retirement, or the currently monthly employer contribution amount.
Just over half (65%) of providers show a risk level for the chosen investment funds within their member portal.
Tax relief estimations are one area that workplace pension members are offered less information from their provider portals. Almost half (45%) of portals do not include a current monthly estimate of the amount applied in tax relief.
The majority (95%) of member portals display the current plan charges. Only Royal London does not. Over half (60%) of providers display charges as a percentage only, 10% display them only in their pound and pence format, and a quarter (25%) display them as both.
In terms of the functionality for making changes, our data shows that all workplace pension providers now offer transactional member portals.
Any changes made are also instant for most providers. 95% of member portals carry out transactions in real time. Salvus do not as fund switches/redirections are completed by the scheme administrator. Aviva also require additional identity check for members to make changes via their portal.
Our data shows that changes to member information can be carried out via all workplace pension provider portals. However, how much of that information can be changed varies from portal to portal. The only changes that can be carried out via the member portal of all providers are a change/update of retirement date, fund switches, and an update of address details.
All but one provider portals (Salvus) enable the member to model different retirement outcomes via the portals. Other than for True Potential, these models include retirement planning tools.
The majority (95%) of member portals will allow members to update/change beneficiaries, transfer another pension to you, and update a telephone number. Most (90%) provider member portals will allow members to update their email address.
Just over half (65%) of provider member portals facilitate single payment pension top ups, and an increase in monthly member contributions.
Sources:
[1] Statistica surveyed UK adults in September 2019, asking if they had used online banking in the past three months
[2] Opinium surveyed 2,000 UK adults on behalf of Aegon between 15-19 May.
