Managing vulnerability
We cannot design vulnerability out of people’s lives. People will get ill, lose jobs, take career breaks, care for relatives, separate from partners and face financial shocks they never saw coming. That is life, and for many of us our financial circumstances will look very different at 55 from the way they did at 35.
But what we can do is make sure those moments don’t have room to derail somebody’s retirement. And our research shows exactly why that will take more than one answer. People need the opportunity to build stronger pension savings and financial resilience while things are going well, but there also must be support around them when circumstances change.
That includes a financial safety net for people whose ability to work is affected, appropriate protection that can help households cope with a sudden loss of earnings, and pension products and services which recognise that not everybody will engage in the same way. It also means clearer and more relevant guidance, while keeping human support at the end of the line when an app or automated journey simply is not enough.
That is life, and for many of us our financial circumstances will look very different at 55 from the way they did at 35.”
There has been a common thread running through all of our Retirement Report research this year, and in previous years. Our National Retirement Forecast showed that millions of people remain at risk of pension poverty. Our work on health showed just how quickly poor health can disrupt earnings and retirement savings, while our modelling has demonstrated the importance of building retirement resilience earlier, and the impact that can have.
Vulnerability sits across all of those issues, rather than alongside them. And perhaps that is the most important point. If six in ten adults can experience some form of vulnerability, we should stop thinking about designing for vulnerability as designing for a separate group of people. It is really about designing for the reality of people’s lives.
The ambition should be a retirement system that works when life is going smoothly, but does not fall apart the moment it isn’t.
Our colleagues are trained to recognise the signs that somebody may need extra help and, where a customer is comfortable, to open sensitive conversations and explore what support would make a difference. They are also skilled at connecting customers with specialist third-sector organisations when needs go beyond what we can provide directly. The more we can make disclosure feel easy, safe and worthwhile, the more effectively our teams can use that expertise. The message should be simple: tell us what you need, and we will listen, adapt our support and help you find the right next step. That clarity can build trust and help customers see disclosure as a route to practical help.
