Description of the programme

Pension Wise is a national pensions guidance service, backed by the Department for Work and Pensions (DWP). It provides free, impartial guidance on the options available to people wishing to access their pension money. It is open to anyone aged 50 and over with a defined contribution pension that has not been accessed. The programme is delivered through a partnership. Citizens Advice offers face-to-face appointments, while The Pensions Advisory Service (TPAS) provide telephone appointments. Information is also available on the Pension Wise website.

The study

The research evaluates customer experiences of the Pension Wise service from February 2016 to January 2017, comparing different delivery methods. The evaluation was based on telephone and online surveys conducted with customers and eligible non-users, including people that accessed information about Pension Wise online. The initial survey consulted 7,967 people who booked appointments. Of these people, 3,208 customers completed a follow-up outcomes survey. 1,857 people who did not have a Pension Wise appointment but were eligible also completed a survey.

The surveys measured experiences and outcomes achieved. They included questions about:

• Where customers heard about the service and what prompted them to use it.
• Experience of booking and completing appointments.
• Satisfaction with the service.
• Impacts of the service on customers’ knowledge and understanding about pension options.
• Impacts on participants’ actions to progress their pension options.

Participant data was weighted to be representative of people who booked Pension Wise appointments between February 2016 and January 2017. Website users and non-user responses were also weighted to match the profile of those who booked appointments, providing a comparison group for the analysis.

Key findings

Customers attending appointments were more often male (67%), married/living as a couple (70%) and white (93%). The higher proportion of male customers is understandable, given that more men than women have defined contribution pensions. Almost three-in-ten appointment customers were already retired (28%). Over two-thirds (69%) had consulted another source of advice about their defined contribution pension in the preceding year.

The most common motivation for customers to use the service was approaching retirement age (53%), followed by being encouraged by their pension provider (25%). The majority of customers (90%) used Pension Wise to learn more about their pension options.

• Among customers who completed appointments, 94% were satisfied or very satisfied.
• The overwhelming majority (94%) were satisfied that their options were clearly set out to them and 90% felt they were helped to make an informed choice about their next steps.
• Over 90% of customers were satisfied with various aspects of their appointment, including convenience, waiting times, appointment length, knowledge level of the adviser, clarity of discussions and tailoring to personal circumstances.
• Almost a quarter of customers (23%) had recommended Pension Wise to others, and a further 62% said they were very likely to do so.

• The service was effective in helping customers feel informed about their pension options: 93% of customers who completed appointments felt informed. This was compared to 86% of people who visited the website, and 56% of non-users.
• 88% of customers believed their understanding of their pension options improved as a result of their Pension Wise appointment.
• Appointments also helped increase customer awareness of financial scams. The majority of appointment customers (94%) felt confident in their ability to avoid scams, compared to 90% of website customers and 80% of non-users.
• 70% of appointment customers had been in communication with their pension providers following their Pension Wise appointment.

• Customers completing an appointment were more likely than non-users to take steps towards making informed decisions about their access options. Actions included talking to pension providers, researching pension quotes, exploring tax implications and charges and considering investment options. For example, 72% of customers had calculated the income they needed in retirement following their appointment, compared to 57% of website users and 29% of non-users.

Points to consider

• DWP commissioned a follow-up evaluation of Pension Wise in 2017/18, to measure changes in customer experience and outcomes over time. These findings may be of interest to others developing pensions services.
• The intervention could potentially be scaled up to reach more customers or tested with demographic groups that have engaged less.