Defaqto don’t give out an award for “Most simple and effective pensions marketing material of the year” but if we did my vote would probably go to Hargreaves Lansdown. Along with their end of tax year call to arms for ISAs, HL ensure that they urge potential and existing clients to take advantage of similar pensions tax advantages.

Without the use of industry jargon HL’s marketing material, sent directly to consumers in HL mailshots or available on the HL website, explains the following terms in a very concise but effective manner: 

• Annual pension tax allowance
• Tax relief available to basic/higher rate tax payers on pension contributions
• Legislative update on tax relief terms

This type of material is to be applauded and is a necessity if more UK consumers are to understand the benefits of pensions when making savings decisions, especially the underpinning advantage of tax relief on pension contributions.Research¹ carried out for Defaqto’s Retirement Savings & Income Report 2007 revealed that a meagre 9% of consumers saw that pension savings plans offer good tax incentives suggesting that many are not aware of this USP.Although the research findings show that 31% of consumers do view pension savings plans as important for supporting them when they retire, 20% viewed them as a necessary evil, 16% viewed them as too confusing to worry about while a further 14% felt that pension savings plans are less attractive than other investments like residential property.If the UK is to tackle the pensions savings gap head-on consumers will need to be encouraged to engage with pensions, and other retirement savings methods, and must be made aware that ‘there is something in it for me’. Marketing campaigns which include educational content are certainly a step in the right direction. ¹Research conducted on behalf of Defaqto by GfK NOP with a survey sample of 1,000 consumers