Why pension savers deserve to be treated as customers

In almost every sector, products are continually refined to reflect customer expectations. From food to bank accounts to cars, the customer is always king.  

But workplace pensions are an outlier: they are one of very few products where the end user, in this case the employee, has almost no influence over the buying decision. Most employees have as much say in the choice of their pension as they do in the choice of office tea bags; that decision is made for them. 

Employers pick the provider, sign the contract and manage compliance. Employees are enrolled, often with minimal consultation about what they actually want. Is it any wonder then that engagement with pensions remains stubbornly low? Lack of engagement translates into low perceived value – and if employees don’t value the scheme, the employer sees little return on investment. The pension becomes a cost centre rather than a strategic lever to boost company performance. 

Part of the problem lies in mindset and terminology. Many pension providers still refer to employees as ‘members’. It sounds harmless but it isn’t. 

Why 'member' thinking falls short

When pension savers are treated as members, the focus tends to be on the product and the process. Communications become generic and inertia prevails as decisions are made on their behalf.  When regulation and administration are the driving forces, user experience takes a back seat. That means engagement, the true driver of value and better retirement outcomes, becomes an afterthought. 

The results of this approach are predictably poor: low contribution levels, minimal interaction, poor understanding and limited appreciation of the benefit. Employees either disengage because retirement feels too far away, or because the system feels too complex to navigate.  

Why ‘customer’ thinking dials up value 

It’s not just semantics – treating employees as customers rather than members fundamentally changes how we define success. 

When we view savers as customers, the emphasis shifts from compliance to customer outcomes. It prompts us to communicate more clearly, build more intuitive digital tools, create personalised nudges that encourage better saving behaviours and, ultimately, help customers achieve better financial outcomes. The overall experience is designed around real human behaviour, not regulatory minimums. 

This is when employees start to engage and value their pension. It’s also when their contribution levels tend to increase, financial wellbeing improves and overall trust in the employer strengthens. The pension stops feeling like a dull payslip deduction and starts to feel like a meaningful benefit. 

In a competitive skills market, a pension scheme that employees understand and value becomes a differentiator in recruitment and a powerful retention tool. The scheme moves from being just a cost and compliance tick-box to a strategic enabler to help attract and retain the best employees. 

Bridging the pension expectation gap 

Even well-intentioned employers often face an expectation gap: what they believe employees want does not always align with what employees actually value. Our research consistently highlights three themes that employees care about most:  

• Simplicity (jargon and complexity are barriers)  

• Accessibility (digital first, but access to real people when needed)  

• Communications (everything needs to be in plain everyday language) 

Simplicity is fundamental. Many employees find pensions complicated, and their understanding does not necessarily improve with age. Clear communication, intuitive digital access and straightforward language are essential. Where apps and real-time access are available, engagement typically increases because savers can see, track and manage their money easily. 

Consolidation is another powerful driver. Employees increasingly want the ability to bring multiple pension pots together.  

And, among younger savers especially, there is growing interest in how pension investments affect society and the environment. Growth remains important, but so does impact. Giving employees visibility into where their money is invested makes the experience feel meaningful rather than mechanical. 

Pension engagement: one size no longer fits all  

Treating members as customers means recognising that individuals have different needs at different stages of life. A 25-year-old balancing rent and student loans will engage differently from a 55-year-old approaching retirement. A customer-led approach builds flexibility around these life stages without adding complexity for employers. 

When pensions are designed and delivered in this way, they stop being ‘just another cost’ or a benefit that is only supported because of compliance and inertia. Instead, they generate genuine return on investment for the employer. 

It’s a simple but powerful shift: stop managing members and start serving customers, and the benefits – engagement, value, and measurable business impact – will follow. 

Is your workplace pension a win-win for your business and employees? Score your scheme, benchmark against other UK employers, and get tips for better outcomes with the Cushon scorecard.

Article by

Steve Watson, Director of Policy & Research