26 June 08 – Publication of DWP research report: No 507 Evaluation of Pensions Education Fund

Research is published today by the Department for Work and Pensions which presents the findings from an evaluation of the Pensions Education Fund (PEF). The evaluation’s main aims were to provide evidence of the added value that a trusted third party can bring to the process of delivering pensions information; and explore providers’ and employers’ experiences of setting up and running PEF initiatives.  The evaluation also aimed to collect some information on the impact of PEF on individual participants’ pensions knowledge and retirement planning behaviour.

The main findings were as follows:

1. Many providers found it more difficult to engage employers than they anticipated. This often led to providers revising their approaches - this usually involved working harder and more flexibly to engage employers and sometimes targeting larger employers (between 100 and 250 employees) and/or those with known HR managements.  This meant fewer employers than planned were engaged as a result. Nevertheless, the research did incorporate a reasonable mix of employers (by size and sector) and individuals (by characteristics). Overall, providers simply found that flexibility and perseverance were successful in securing entry to employers.

2. Providers were able to identify a series of ‘good practice’ steps towards engaging employers and individuals, such as the need for flexibility in the format, content and language used in the delivery of pensions information.

3. Employers and individuals taking part in the evaluation were generally happy with their provider and with the content and delivery of information, suggesting some value in offering such information through a ‘trusted third party’.

4. Albeit based on a limited methodology and sample (see below), the evaluation found that those in the PEF target groups (i.e. those thought to be at most risk of under-provision for retirement, such as women and ethnic minorities) thought they had improved their pensions knowledge more than the average across all participants.

It is important to note that the ‘opt-in’ methodology used in the research, whereby individuals had to actively volunteer to take part in the research, means the findings relating to this group (over 900 in all) may not be representative of all participating individuals. Those willing to be interviewed were more likely to have a pension, constituted less than 5 per cent of all individuals receiving information in 2006 from those PEF providers that took part in the evaluation and, having volunteered to take part in the evaluation, were thought more likely to be engaged with pensions issues.

With employers, the methodology was closer to an ‘opt-out’ approach i.e. it was assumed they were willing to take part unless they actively sought not to, but the fact that these employers (55 in all) were among the first engaged with PEF means that their experiences may be specific to those participating employers.  

Notes for Editors

1. The Pensions Education Fund (PEF) contracts began at the start of 2006 and ran until April 2008. The programme has now been extended for a further 12 months, until March 2009. PEF provides funding for not-for-profit organisations to deliver information on pensions and retirement planning in innovative ways to employees and the self-employed via the workplace, where practicable and feasible. It was hoped that PEF would particularly engage with those regarded as being particularly at risk of under-providing for their retirement (e.g. women, ethnic minorities).
2. A total of 26 organisations received funding. These ranged from national charities to local community groups. For most, delivering pensions information was a new venture although many already offered services that provide information, education or advice (in a few cases in the area of financial guidance) or because they had existing services focused on one or more of the PEF target groups.
3. In all, 14 of the 26 organisations took part in the research. These were selected to take part to cover a range of organisation types, approaches to providing information and coverage of target groups.
4. For each provider, research was conducted with the provider itself, employers (where appropriate or applicable) and individuals.  A mixed methodology was used and adapted to meet the specific circumstances of the schemes. The main elements were short and in-depth interviews with providers at different junctures during the course of the PEF scheme; short interviews with employers around 9-12 months after the start of PEF; and a mix of short initial and follow-up interviews with individuals who were willing to be engaged with the research at 6-8 weeks after they had received PEF information, and then again  after 12-16 weeks.
5. “Evaluation of Pensions Education Fund” by Adams L., Bunt K., Carter K. and Davies A. IFF Ltd. 2008.  The report is published in the Department for Work and Pensions Research Report Series (Report No. 507).

 

DWP Press Office: 020 3267 5144
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Textphone: 020 3267 5145
Website: www.dwp.gov.uk
Prepared by: Department for Work and Pensions Pensions Analysis Directorate