It sounds like a simple administrative error: a pension statement sent to the wrong home. But when that letter contains personal financial information, the consequences can be serious for both the member and the scheme.
Recent headlines have shown how quickly things can go wrong when member data and communication methods do not align. Incorrect addresses, unverified contact details, or legacy systems that still rely on paper-based processes all create unnecessary risk.
For many schemes and providers, this is still the reality of pension communication today. Sensitive information travels through the post, often based on outdated records, with little way of knowing whether it reaches the intended recipient. And when it does not, the cost, both financial and reputational, can be significant.
Poor data quality does not just create frustration. It wastes time, money and member goodwill. Heywood’s Pension Pulse report found that 9.44% of member addresses were incorrect, meaning thousands of pension communications may be landing on the wrong doorsteps. Even more concerning, over one in fifty pensionable members were recorded as deceased but still active, a stark reminder of how data errors compound over time.
The costs stack up too. Schemes spend heavily on printing and postage for communications that never reach their intended audience. And while the financial impact is measurable, the damage to member trust is harder to repair.
As the industry moves toward pensions dashboards and greater digital transparency, expectations for accuracy and security in pension communication are rising fast.
The way pension schemes communicate with members is changing. For years, paper-based communication has been the standard, even as other sectors have modernised and moved online. But the pressure to adapt is growing and progress is being made.
Regulators are placing greater emphasis on data accuracy and member protection. At the same time, members expect the same experience they receive elsewhere: clear, timely and secure updates delivered digitally. Dashboards will only accelerate that expectation, giving members access to their pensions information at the click of a button – accurate member records notwithstanding, of course.
Yet many schemes are still relying on methods that leave them exposed. Letters sent to the wrong address. Unencrypted emails containing sensitive information. Outdated processes that make it difficult to prove whether a member ever received a message.
The result is a widening gap between what members expect and what many schemes can deliver. Closing that gap will require a new approach to pension communication that combines accuracy, security and accessibility.
Secure digital communication is more than simply sending an email instead of a letter. It is about delivering information in a way that is protected, personalised and provable.
That means using encrypted channels that safeguard personal data from start to finish. It means giving members a secure environment where they can view their pension information confidently, knowing it cannot be intercepted or forwarded. And it means giving administrators a clear audit trail that shows when, how and by whom information was accessed.
Some schemes have experimented with secure email as a middle ground between post and full digital delivery. While this can reduce printing costs and improve speed, it still relies on the assumption that contact details are correct and that members will engage with attachments or portals. The real opportunity lies in going a step further and transforming how information is presented.
Personalised video communication is fast becoming a breakthrough in pension engagement. It allows schemes to combine clarity with compliance, giving members content they can understand while maintaining full data security.
Each video is unique to the individual. It can explain complex pension details such as benefit statements, projections, or retirement options in simple, visual terms. Members see their own figures and information in a format that is engaging, accessible and far less prone to misunderstanding.
From an operational perspective, video communication offers the security and auditability schemes need. Every interaction can be tracked, and access can be restricted to the intended recipient only. The technology integrates seamlessly with administration systems, ensuring the same data accuracy that underpins all modern pension communication.
Solutions such as Video Engage are already helping administrators replace outdated processes with secure, digital-first communication that improves understanding and builds trust.