How can we offer members better support?

When people are struggling, where can they get the right kind of support?  

Around one in five workplace pension members^* has a support need of some kind. 

Health, such as having a serious illness, is the most common vulnerability driver^* according to what our customers have disclosed. It’s perhaps unsurprising given that around one in two of us is likely to get cancer at some point. 

This is followed by a life event, which could manifest as bereavement, a job loss, or perhaps an income shock. Cost of living pressures still affect many people, too. 

Thirdly, members may have challenges managing their finances in an increasingly digital world – and that’s putting them at a disadvantage, especially with the imminent arrival of pensions dashboards.  

More than 12 million people in the UK have low digital skills; and almost eight million people are not digitally engaged at all – either because they don’t want to be, or simply can’t.^**

The reality is that any vulnerability can have a profound effect on people’s finances now, and in the future.  

Support for vulnerable members is clearly the right thing to do as we want more people to be able to look forward to a comfortable retirement. It is also high on the FCA’s agenda, with Consumer Duty introduced in 2023 to “deliver good outcomes for all customers, including those in vulnerable circumstances”. Similarly, fiduciary duty in the trust-based world also implies ensuring good outcomes for vulnerable customers.  

Our approach  

At Scottish Widows we’ve got a well-established customer vulnerability strategy in place to offer support. However, we want to raise awareness of what’s available, and do more where we can. We know it’s an area where employers are looking for more support and information for their employees too.  

It’s our partnerships which really help to make a difference. We work with experts who can provide direct support to those with a vulnerability, as well as partners who help and advise us on ways to continuously improve the support we provide.

Citizens Advice support

We’ve just made our 1,500th Scottish Widows member referral to Citizens Advice, which we’ve partnered with for several years to help workplace pension members access grants, benefits, and advice. When referred through us, members have the option of requesting a call back within 48 hours, and get a full financial assessment by a dedicated member of the Citizens Advice team.  

Surviving Economic Abuse and Women’s Aid 

Then there’s the work we’re doing to support members who experience domestic and/ or economic abuse alongside the Surviving Economic Abuse (SEA) and Women’s Aid charities. 

It's an incredibly sensitive area but a relatively common one, with two in five adults in the UK experiencing some form of economic or financial abuse during their lifetime.  

Our vulnerability representatives within customer operations have been on a two-day training course with SEA so they can recognise the signs of domestic or economic abuse and have the right skills to help.  

As part of Lloyds Banking Group, we also have access to a lot of behavioural MI and insight which would help indicate to us if someone is potentially a victim of domestic and economic abuse, and that supports us in opening up conversations with them. 

If we identify that a customer is a victim of economic abuse, we can – with their consent – record that on our system and signpost them to support available through our charity partners, depending on their needs. 

We can also look at how we could put protection on their policies or communicate with them in a safe, secure way.  

It’s so important we do all we can to get it right, especially as people are still more likely to tell their financial services provider that they’re experiencing abuse rather than the authorities.  

Three Hands

We are currently working with Three Hands, an organisation that has been gathering insight on our behalf with groups of people with a range of vulnerabilities across the accumulation and drawdown stages of their pension journey.  

The research includes insights from those with neurodivergences, sight and hearing impediments, low financial resilience, people who have been through bereavement, are going through the menopause, or are living with cancer, to name a few. 

It’s about really understanding what the pension saving experience is like for them, right through to when they take their pension benefits. What challenges do they face? What barriers do they have, and how do they interact with us through our digital and other channels?  

We’re really proud to be challenging ourselves through this work, based on real customer insights to shape how we can improve things.

What can employers do to support members?

There’s a lot of help out there, so make all pension members aware of support that is available from their provider: 

• BeMoneyWell from Scottish Widows has tools and guidance for pension members who need support, including Macmillan Cancer Support to help those affected by cancer, either directly or indirectly; and ways to build digital skills, money management, and manage life’s big moments. Lack of financial knowledge and capability is a big issue and BeMoneyWell can help people enhance their overall skills and knowledge to help them confidently make decisions about their finances.  
• Our customer operations teams are trained to support members who get in touch, and to open up sensitive conversations about vulnerability and abuse where they suspect it. 
• Read more on our customer vulnerability work, or listen to Scottish Widows’ June 2024 podcast – our most popular podcast to date.  
• Our brand-new digital inclusion podcast discusses ways to help people build their digital skills and support for those with sight challenges.

References:  

*/**Based on LBG-wide data, April 2025 

** Consumer Digital Index Report: 16.8 million people are in the low and very low digital capability segments; 29.9 million people are in the Low and Very Low Financial Capability segments.