Today, there could be as many as 1.6 million lost pensions in the UK with a potential aggregated value of £20bn.
The Commission on Dormant Assets estimated in 2017 that around £400 million of insurance and pension assets are possibly dormant, while The Unclaimed Assets Register estimates that there are £4 billion in unclaimed insurance and pension schemes. This sudden increase of lost pension value - from £400 million before auto-enrolment was fully introduced to now £20bn - shows how auto-enrolment aggravates this issue of lost pensions.
Due to automatic enrolment, workers enrol in a new pension plan with each new employer. In fact, if a UK worker changes jobs every five years on average and works for approximately 35 years in their lifetime, then they potentially have seven separate pension plans. If they don’t keep track of these pensions, their pension savings end up unclaimed and dormant.
Pension savings are left untouched as people don’t have the knowledge and the resources to claim them. This creates a backlog of dormant pensions and a missed opportunity by pension providers for asset accumulation.
Financial advisors also spend needless time themselves or seeking assistance to trace their client’s pensions.
Not with Raindrop’s smart technology and tools.
Raindrop’s pension tracing service helps financial advisors and pension providers improve their pension finding service and enhance their customer’s experience.
The Problem
The number of lost pensions in the UK - currently at 1.6 million - is predicted to rise to 50 million lost pots by 2050, with an accumulated value of £757bn.
Auto-enrolment is amplifying the number of lost pensions leading to a missed opportunity for pension owners to enjoy their pension savings as well as a missed opportunity for financial services to accumulate assets.
It is also a missed opportunity for financial advisors who could offer pension tracing as a service during financial planning for their clients. Financial advisors need to seek fintech resources and tools themselves and manage the process through a separate pension tracing company.
But Raindrop will change that.
We are helping the financial services industry effectively tackle this backlog of lost pension pots, with our pension tracing service. We now offer our technology, expertise and service to pension providers and financial advisors that want to reach new audiences and engage existing customers through pension finding.
It can be difficult to engage with customers who don’t engage with their pensions. While auto enrolment has introduced many people to pensions they can still feel complex and lacking motivation to regularly check their savings. But Raindrop’s pension finding service helps pension providers and financial advisors have the right technology and resources to offer an enhanced customer experience. The excitement of locating old pensions and bringing these together helps to increase customer engagement and encourage further financial planning.
We also understand that pension finding is operationally expensive. Many pension providers in their quest to service their customers better and find their lost pensions, fail to realise the costs of this process for the company itself. For example, there are research and development costs involved in creating the pension tracing service and technology. Raindrop minimises extra costs with our smart pension finding tool.
We can help you shape the future of pension finding, with our pension tracing technology.
The Solution
Raindrop’s pension finding technology connects people back to their pensions. IFAs and pension providers can help their clients take control of their pensions and shape the future of pension finding.
- We provide our advanced pension tracing technology to partners to rapidly launch their own pension finding service.
- Our end-to-end case management system takes care of the customer journey from start to finish.
- After the customer's permission, we can also support the transfer of new-found pensions to your existing pension product.
- For pension providers, we also manage all communications, including with the end user, with your branding at the forefront.
- Specifically for financial advisors, we provide a dedicated portal where they can submit their customer’s pension finding requests and monitor the progress while managing all communication with their clients themselves.
Completely managed solution.
Our pension tracing service offers a white-label solution. We create a customer journey with your branding, powered by Raindrop. This is perfectly suited to pension providers and fintechs who want to increase their customer engagement and accelerate customer growth.
We offer a dedicated customer journey managing the pension finding process and all communication with the end customer, all with the partner’s branding. Each customer gets their own personalised dashboard to track their pensions and a dedicated pension assistant. Customers also have the option to transfer their new-found pot to the partner’s pension scheme, a seamless process that improves asset accumulation.
Pension providers and fintechs can now provide a better pension tracing service, better engage with their customers and expand their business.
Partially managed solution
We also help IFAs provide a better pension finding experience to their clients. We offer an intelligent portal for advisors through which they are able to add their client’s pension finding requests and monitor their progress while continuing to manage the client relationship.
They spend less time searching for the right pension tracing scheme, and more time providing excellent financial advice and engaging with their customers.
Smart and secure technology.
Our industry-leading technology is seamless and secure shaping the future of pension finding. Our pension tracing technology includes the following:
Automation.
- Our technology has Optical Character Recognition which automatically reads documents and turns them into structured data.
- Our system auto-generates Letters of Authority to both schemes and employers and auto-chases schemes, employers and customers for further information as required.
- We have also automated the generation of user details on pre-existing scheme transfer documents to both speed up and increase the success of a transfer.
- Lastly, throughout the life of offering our service, we are continually growing our proprietary employer to scheme database, which are mappings of employers to their underlying pension scheme. This process helps with a near-instant resolution of future cases.
Communication.
- We offer a real-time pension notification system that sends updates to partners when new users sign up and updates to users regarding the progress of their requests.
- Our smart technology centralises all communications across the end user, employer and underlying pension scheme.
Security.
- Our technology has bank-grade security with AES 256 bit encryption for all data in flight and at rest.
- It also has open source standards for connectivity and deeper integration (REST OpenAPI over HTTPS).
- Lastly, all (user uploaded or email sent) files are scanned for malware.
Value.
- We offer a bespoke consumer-facing dashboard that increases end-user engagement as customers can keep track of the progress of their requirements on this dashboard.
- For financial advisors, their portal helps manage all communications and requirements without involving the customer and providing an enhanced customer experience.
Choose the service which is best for you.
We partner with smart fintechs, pension providers and IFAs, providing them with the right tools and resources to expand their pension tracing services. Our technology helps you provide a better customer experience and reach new audiences.
We give our partners flexible options when it comes to working with us.
- For pension providers, we offer a white-label solution with the partner’s branding. We handle the pension tracing process from start to finish, as well as all communications with customers. We provide an end-to-end management service and an enhanced customer experience.
- For financial advisors we offer a dedicated portal through which partners can service customers using Raindrop’s operational resource, managing the pension finding process without the customer’s involvement.
- We also provide further modular services such as transfer management, customer support automation and MI reporting.
Get started today. Let us help you reach new audiences and engage existing customers with our advanced pension finding technology.
