Pensions research to help Nest refine their new product
Nest (National Employer Savings Trust) – the UK’s largest defined contribution workplace pension scheme – will be introducing a new product to address the Pension Freedom and Choice Act 2015. Pensions research was required to align the new product with members’ aspirations. The key objectives were to understand acceptable levels of risk for Nest members and their preferences in terms of potential lump sums, whilst quantifying findings and identifying member segments.
Together with PJM Economics, we developed a Choice Experiment questionnaire. The project had two main stages – cognitive testing followed by a quantitative, online phase amongst over 4,000 members.
The cognitive testing phase helped us identify and refine the layout of the choice experiments to ensure the final survey was both user-friendly and would provide us with the required data. The second stage was incentivised, with members invited to the survey via email. The survey was hosted by Accent, using our proprietary survey software.
The project has helped Nest better understand their members’ attitudes to retirement income and retirement income volatility. This pensions research has also highlighted the varying attitudes of different subgroups such as older and younger age groups and risk averse members. The findings are being used to set the levels for two core elements of the new product.
“We’re really pleased with the latest project Accent did for us - it’s produced some really useful insights which we can act upon. And it’s been really well received around the business, not just in the Investment area. ”Ric Tizard, Nest