It is notoriously hard to get workers to engage with their workplace pension. Historically, one of the main reasons for this has been a lack of transparency around what exactly is happening with a member’s money. One method through which workplace pension providers can provide this much desired transparency for their members is by providing an online or electronic transaction history to help them see what is coming in and/or out of their pension.
Our latest insight looks at electronic transaction histories and which providers make what information available to whom.
We are now well and truly in the information age where consumers expect a raft of information to be readily available at their fingertips online.
The Coronavirus pandemic has only served to drive a wider section of the population towards managing their finances online with the majority of consumers now au-fait with digital banking.
Workplace pensions are no exception. Consumers increasingly expect to see more information around their pension online, including an online or electronic transaction history.
Our data shows that all workplace pension providers offer an online or electronic transaction history. However, for some providers this must be triggered either electronically or manually.
All workplace pension providers can provide electronic transaction history for single contributions, regular contributions, transfers in, and each fund invested. Most can also provide a digital transaction history for withdrawals, only Mercer Master Trust Scottish Widows cannot.
The most popular method via which members can view a digital transaction history is online. Members of Aviva Designer, Aviva My Money, Aviva My Money Master Trust, Fidelity, Fidelity Master Trust, Mercer Master Trust Aviva, Scottish Widows, Standard Life and Standard Life DC Master Trust can do this.
Members of Hargreaves Lansdown, Legal & General, Legal & General Master Trust, Mercer Master Trust Scottish Widows, Royal London, Scottish Widows GSIPP and Scottish Widows Master Trust can view only online.
For members of Aegon Master Trust and Aegon Workplace ARC the digital transaction history must be electronically triggered by the adviser.
Members of True Potential must request their digital transaction history on a manual basis.
When it comes to the level of detail available, our data shows that all workplace pension providers’ digital transaction histories include the amount, frequency and commencement date where relevant. Percentage and type is also visible in the histories from some providers.
Fund switches and unit changes are also visible in some form for all workplace pension providers’ digital transaction histories. This includes decreases and increases in the number of units for each fund.
Share transactions (bought and sold) are online included by Aegon Master Trust, Aegon Workplace ARC, Hargreaves Lansdown, Scottish Widows, Scottish Widows GSIPP, Standard Life and Standard Life DC Master Trust. For members of Aegon Master Trust, Aegon Workplace ARC and Scottish Widows this must also be adviser electronically triggered.
Only Scottish Widows, Standard Life and Standard Life DC Master Trust include commercial property transactions in their digital transaction histories. For Scottish Widows this must also be adviser electronically triggered.
Bank account transactions are also less visible. Only Aegon Master Trust, Fidelity, Fidelity Master Trust, Hargreaves Lansdown, Scottish Widows, Standard Life and Standard Life DC Master Trust include these on their digital transaction histories. For members of Aegon Master Trust, Aegon Workplace ARC and Scottish Widows this must also be adviser electronically triggered.
Overall, our data shows that most workplace pension providers offer a broad range of digital transaction history data. However, it is worth noting that for some providers much of this must be digitally triggered by an adviser or manually triggered so employers should not assume this data will be visible to members as standard.
