Modern member experiences are becoming a competitive necessity for retirement plan software and a compliance requirement for many public entities. Public retirement systems that deliver intuitive, accessible and mobile-first digital self-service see higher satisfaction, deeper member engagement and better retirement readiness.
This approach reduces avoidable service demand and operational costs. In this article, Andrew Phillips explores how the retirement plan software market is evolving, the features that define effective digital experiences, and the broader impact on satisfaction, accessibility and member wellbeing.
Retirement plan members increasingly expect the same seamless digital service they receive from banks, retailers and healthcare providers. For public plans, there is an urgent need, driven by ADA Title II and Section 508 accessibility obligations that now extend to web and mobile platforms.
Yet despite investments in technology, member satisfaction varies widely. Many systems still rely on dated interfaces and fragmented service journeys that frustrate participants and erode trust. The opportunity for human centered design, grounded in simplicity and inclusivity, has never been greater.
Modern member experiences share several core characteristics. They are personal, frictionless and designed around life moments rather than transactions.
A participant should be able to see their entire retirement picture in one place, understand what it means for their future and take the next step with confidence. That next step might be changing a contribution, checking income projections or consolidating an old account.
Members should have confidence in improved technology that adapts to their stage of life and financial situation, from new entrants learning the basics of saving to near retirees modelling their income options.
Smooth self-service also matters. Members expect to update details, change contributions or check projections on any device, without forms or phone queues.
The best plans complement this autonomy with clear, accessible guidance such as short videos, calculators and plain language that explain tradeoffs and decisions in context.
Accessibility is the foundation that holds it all together. Complying with ADA Title II and WCAG 2.1 AA ensures digital equality for every participant, but it also improves usability for everyone. When interfaces are designed with clarity, color contrast and keyboard navigation in mind, they become faster and more intuitive for all users. Security and trust are equally essential, with two factor authentication and transparent privacy controls that reassure members their data is protected.
Above all, a modern experience feels consistent, whether members use a web portal, mobile app or call center. Information should travel with them, so the conversation continues without repetition or delay. This kind of continuity turns digital transformation from a technology upgrade into a genuine service improvement.
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"Modernization is not just a technology refresh. It is a value driver for both members and plan administrators. Every improvement to the member experience translates into measurable financial or operational gains. For members, the value is personal and immediate. Clear information, self-service tools and intuitive design help people make better choices. When members understand their projected income and can adjust contributions easily, participation rises and leakage falls. Over time, this will mean higher account balances, fewer deferred or lost accounts and better retirement readiness across the membership." |
Andrew Phillips, |
According to Accenture, many public systems estimate that 40 to 60 percent of current contact center queries relate to issues that could be resolved instantly through better self-service. Reducing that dependency lowers cost to serve, frees up staff for complex cases and shortens service backlogs.
The financial impact compounds. Fewer manual interventions mean lower error rates and faster processing. Improved data quality leads to cleaner actuarial valuations and better reporting accuracy. Strong authentication and clearer digital audit trails reduce fraud risk. Accessibility compliance also cuts legal exposure and reputational risk.
Justifying investment in modernization is easier when these outcomes are visible. A plan can map the business case by combining hard savings, such as reduced call volume and paper handling, with soft benefits like higher satisfaction and engagement. When members feel supported and informed, they stay with the plan longer, contribute more and approach retirement with confidence. That is value that compounds for decades.
The cost of modernization can seem high, but the return is measurable and sustained. Each year of delay compounds technical debt and service inefficiency. Aging systems are expensive to maintain and limit a plan’s ability to meet accessibility, security and data standards that are now expected by regulators and members alike.
Digital self-service alone can deliver substantial savings. For most public retirement systems, it is estimated by Gartner and the ICMI that the average assisted contact costs between $6 and $12, compared with less than $0.25 for a digital self-service transaction. When even a quarter of member interactions move online, the annual savings can reach millions of dollars.
At the same time, better data integrity and automated workflows reduce actuarial and administrative errors, which have both compliance and reputational implications. Fewer manual interventions free staff to focus on complex cases and proactive outreach, rather than repetitive form processing.
Modernization also protects the long-term sustainability of the plan. When members are more confident, contribution levels rise and leakage falls. That improves cash flow and funding ratios, while reducing dormant accounts and escheatment costs. The improved experience strengthens trust, which is especially valuable for public plans facing generational transitions and recruitment challenges.
Ultimately, the question is not whether modernization costs money, but whether the plan can afford not to modernize. The long term financial, operational and reputational risks of maintaining outdated systems far exceed the investment required to bring digital services in line with member expectations and compliance standards.
When members feel informed and in control, they make better financial decisions. Studies consistently show that people who can visualize their projected income are more likely to increase contributions and consolidate old accounts.
For plans, that translates to healthier funding levels and reduced administrative burden. For employers, financially confident employees bring clear benefits such as lower stress, higher engagement and smoother retirements that support workforce planning.
The path to modern member experiences starts with focus. Begin by improving the moments that matter most, such as changing contributions, naming beneficiaries, rolling in prior balances and viewing projected retirement income. Bring accessibility up to standard and publish a clear accessibility statement to build trust. Then introduce personalized nudges and event driven communications that keep members engaged throughout their career.
Over time, unify identity management across channels and use analytics to understand how people interact, what they need next and how each enhancement drives measurable outcomes.
Plan participants want simple, personal and trustworthy digital services. Plans and employers want higher engagement, lower friction and tangible results. By designing around the member, embedding accessibility from the start and measuring behavioral outcomes, retirement systems can achieve both. The reward is not just satisfaction today but better financial well-being and healthier retirements for years to come.
Discover how Heywood’s Pension Software helps public retirement systems modernise their administration and enhance member engagement.