Heywood
Heywood's Pension Pulse 2026 report reveals widespread confusion over pension terminology, growing reliance on AI for pension information and the need for clearer, more personalised, communications.
Almost eight in ten (79%) pension savers say they find their pension communications easy to understand, yet fewer than three in ten can confidently explain fundamental pension concepts, according to new research published by Heywood, a leading provider of pension management solutions.
The findings, published in the second edition of Heywood's Pension Pulse report, reveal a significant disconnect between how well people believe they understand their pensions and their ability to interpret the information needed to make informed retirement decisions.
Based on independent research among 2,000 UK pension holders, Pension Pulse 2026: Are your pension communications understood? examines how people engage with their pensions, their communication preferences and the growing influence of artificial intelligence (AI) on how they access financial information.
Key findings from the report include:
- 79% of pension savers found their most recent pension communication easy to understand, yet only 29% could confidently explain fundamental pension concepts.
- 47% identified jargon and technical language as barriers to understanding pension communications, while 33% said communications don’t always make it clear what action they need to take.
- 37% have used an AI platform such as ChatGPT, Google Gemini or Claude to ask a question about their pension, rising to 60% among those aged 25 to 34.
- 81% of people who have watched a video about their pension found it more useful than written communications, highlighting the benefit of more engaging, interactive and personalised content.
- 76% of pension savers prefer email as a communication channel, yet one in five (20%) have received pension communications they suspected could be fraudulent, highlighting the importance of building trust and ensuring members can confidently identify genuine communications.
The research highlights a particular concern among those approaching retirement. Among people aged 45 to 54, fewer than three in ten (27%) felt confident in their understanding of fundamental pension concepts, while just 22% were confident they understood the value of transferring their pension benefits. These gaps in understanding could make it harder for individuals to assess their options and make informed decisions that could significantly impact their retirement income.
Sian Jones, CEO of Heywood, commented:
"The findings from Pension Pulse 2026 highlight a fundamental challenge for our industry. Most pension savers now believe they understand the information they receive, but the reality is that many lack the knowledge needed to make confident, informed, decisions about their financial future.
"As an industry, we need to move beyond simply providing information and focus on making information easier to understand and use. That means unpicking complexity, using more personalised and engaging communications, and making it easier for people to access trusted information when they need it.
"With pensions dashboards approaching and more consumers turning to AI for answers, there is a real opportunity for the pensions industry to rethink how it engages with members. Better communication is not just about improving the member experience. It is fundamental to helping people achieve better retirement outcomes."
Growing use of AI introduces new risks
One of the report's most significant findings is the extent to which consumers are already using generative AI to answer questions about their pensions.
More than one in three respondents (37%) have consulted an AI platform about their pension, with younger generations leading this trend. One in ten pension savers would now turn to an AI platform as their first source of information when seeking an answer to a pension-related question.
While AI offers convenience and instant access to information, the report warns that publicly available tools may provide inaccurate, outdated or generic responses that fail to account for individual circumstances or specific pension scheme rules.
The findings underline the importance of schemes and providers establishing themselves as trusted, accessible sources of accurate information, while exploring how AI can be used responsibly to improve their own member services.
Building trust through clearer, more personalised communications
The report highlights the importance of balancing member communication preferences with the need to build trust and confidence in the information they receive.
While email remains the preferred communication channel for 76% of respondents, one in five (20%) have received pension communications they suspected could be fraudulent. This presents a challenge for schemes and providers: communicating with members through their preferred channels, while ensuring they can easily recognise and trust the information they receive.
Establishing consistent, recognisable and secure communications is therefore essential to maintaining member confidence and encouraging engagement.
The research also demonstrates the potential value of more engaging approaches, particularly personalised video. Among those who had watched a pension-related video, 81% found it more useful than traditional written communications. More than half (56%) said pension videos should be short and easy to digest, while 40% wanted personalised content.
The findings reinforce the need for schemes and providers to deliver communications that are not only clear, relevant and accessible, but also trusted by the members receiving them.
Data accuracy remains critical ahead of pensions dashboards
The report also raises concerns about member data accuracy as the industry prepares for the introduction of pensions dashboards.
Only 39% of respondents said they always notify their pension provider when their personal information changes, such as their address or surname. This creates potential challenges for accurately matching individuals to their pension records.
The research builds on findings from Pension Pulse 2025, which highlighted the risk of inaccurate personal data generating possible matches through pensions dashboards. Subsequent Phase 1 testing through Heywood's Integrated Service Provider (ISP) found that 14% of 2,152 find requests returned a possible match.
With dashboards expected to increase consumer engagement and enquiries, Heywood highlights the importance of accurate member data, effective administration systems and proactive communications in delivering a positive user experience.
The full Pension Pulse 2026 report explores these challenges in greater detail and outlines how pension schemes and providers can improve member understanding, strengthen trust and use technology to deliver more effective engagement.
