How to communicate pension benefits to a multi-generational workforce

In today’s dynamic employment landscape, organisations face the challenge of engaging a workforce that spans multiple generations - from ‘Baby Boomers’ nearing retirement to ‘Gen Z’ just entering the job market.

One area where this generational diversity becomes particularly complex is in communicating workplace pension benefits. Each group has distinct financial priorities, communication preferences, and levels of pension literacy. Therefore, to ensure all your employees understand and value their workplace pension, you must tailor the messaging and delivery strategies accordingly.

Understanding generational differences in pension awareness

Before deciding how you’ll communicate with your employees, it’s essential to understand how each generation might view retirement and pensions:

• Baby Boomers (born 1946–1964) often have Defined Benefit (DB) pensions and are focused on retirement readiness. They typically value detailed information and prefer traditional communication methods like printed materials or in-person seminars.
• Generation X (born 1965–1980) is juggling family responsibilities and retirement planning. They appreciate digital tools but also value personalised advice.
• Millennials (born 1981–1996) are typically tech-savvy, financially conscious, and expect transparency. They respond well to mobile apps, videos, and interactive content.
• Generation Z (born after 1997) is just beginning their careers. They may not prioritise pensions yet but are open to learning through predominantly digital means.

Understanding these nuances will help your business to better frame workplace pension benefits in ways that resonate with different groups within your workforce.

Tailoring workplace pension communication channels

Due to these differences, a one-size-fits-all approach won’t always work when communicating pension benefits. Instead, it’s important to consider a combination of channels as part of your education and communication strategy. There are several options available:

• Email and intranet updates: Ideal for Gen X and Millennials who regularly check digital platforms.
• Printed guides and workshops: Effective for Baby Boomers who prefer tangible resources and face-to-face interaction.
• Mobile apps and dashboards: Useful for Millennials and Gen Z, offering real-time access to pension contributions and projections.
• Short-form videos: Engaging for younger employees, especially when explaining complex pension concepts in bite-sized formats.

Employers should also ensure that all materials are jargon-free and inclusive of diverse learning styles.

You must effectively demonstrate why workplace pensions matter

Regardless of age, employees need to understand the value of their workplace pension. To achieve this, your messaging should highlight:

• Long-term financial security: Emphasise how consistent contributions can build a stable retirement income.
• Employer contributions: Showcase the added value of your employer pension contributions,
• Tax benefits: Explain how pension contributions reduce taxable income, making it a smart financial move.
• Flexibility: For younger workers, stress how pensions can move with them across jobs.

Leveraging technology for pension engagement

Digital tools can bridge generational gaps and make pension planning more interactive:

• Retirement calculators: Help employees visualise future income based on current contributions.
• Video explainers: An alternative and engaging method of communicating the value of your workplace pension.
• Interactive webinars: Allow employees to ask questions and receive tailored advice.
• Push notifications: Remind employees of contribution deadlines or changes in pension legislation.

These tools not only educate but also empower employees to take control of their financial futures.

Building a culture of pension awareness

Effective communication of workplace pension benefits is not a one-off campaign; it’s a continuous effort to build a culture of financial wellbeing. HR should:

• Audit current pension communication strategies for inclusivity and clarity.
• Consider communicating using a range of different methods.
• Invest in digital tools that make pension planning accessible and engaging.
• Encourage feedback to refine future communications.

Start today by reviewing your pension materials and asking: “Would this make sense to a 25-year-old and a 60-year-old alike?” If not, it’s time to rethink your approach. A well-informed workforce is a confident, loyal, and financially secure one.

We’ll typically review an employer’s existing communications and other employee documentation (such as the onboarding pack, employee handbook or job offer letter) as a starting point. Contact us if you would like to relaunch your workplace pension communication!

Important information

The information provided is for general guidance only and reflects our understanding of HMRC rules at the time of writing. It does not constitute legal, tax, or accounting advice. Employers should seek specific advice from their accountant or tax adviser to ensure the approach taken is appropriate for their circumstances.