Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 674

What Australian super funds can learn from the UK

Robert Cochran tells me that it all started with a big blue bus.

Well, not quite.

One of the UK’s top pension funds started much longer ago, in 1815 in the Royal Exchange coffee rooms in Edinburgh. It was the time of the Enlightenment and a much stronger mastery of numbers. Gathered in the rooms were the money men of the day. They had been taking a keen interest in a global first-ever pension system, one for the retired ministers of the Church of Scotland and their families.

Over coffee and conversation, the decision was made to also do something for the widows of men who’d died fighting for Queen and country in the Napoleonic Wars.

These widows were not little old ladies in frumpy gowns. Their average age was 26 and they would have been condemned to a life of poverty if not for this innovative solution. Thus was born the Scottish Widows Pension Fund.

Fast forward to 2026 and Scottish Widows, now sitting within the Lloyds Banking Group, is one of the largest funds in the UK. Last year, Robert Cochran was awarded the title of Pensions Marketer of the Year and his colleague, Head of Pensions Policy, Pete Glancy calls him a ‘master’ of engagement.

So naturally I was curious to see if Robert would be prepared to share his ‘secret sauce’ with an Australian audience. And he was, answering questions including:

  • What is engagement?
  • Why does it matter?
  • And, most importantly, how does a fund go about increasing it?

Some background

Some days in Australia it seems as though fund member engagement is a bit like the weather. Everyone seems to want to talk about it, yet no one ever seems to do anything.

Now that’s a bit harsh, but engagement has become a bit like black puffer jackets in a Melbourne winter – everywhere to be seen - but it remains an ill-defined, elusive target. Funds are, quite rightly, highly focused on the need to observe the Retirement Income Covenant (RIC), part of which, according to the Australia Prudential Regulations Authority (APRA) requires:

“Tailoring guidance and support for members by delivering retirement-focused communications, education, and guidance to assist members navigate the transition to retirement.”

Yet despite all this attention, there is still remarkably little agreement about what engagement actually means, how it should be measured, and where responsibility for improving it sits.

Some challenges may be bigger than any individual fund. For example, what if there were an agreed industry-standard retirement calculator that combined super, Age Pension entitlements, work income, private assets and lifetime income streams? Such tools already exist in various forms, but a single trusted version might reduce duplication and confusion.

Against that backdrop, let’s find out more about the magic that Robert Cochran uses to motivate his members.

Making pensions more exciting

Of the 10 million or so members of Scottish Widows, half are in workplace pensions and the majority have been automatically enrolled as a work pensions customer since auto enrolment was introduced in the UK in 2012.

Robert’s responsibility as Scottish Widows Workplace savings, innovation and engagement specialist, is to help people who are automatically ‘in’ the system to look forward to a good retirement. To better understand their needs in 2015 he did something unusual – and very clever.

That’s where the big blue bus comes in. Realising that the gateway for members was their employers, Robert wanted to make the concept of a pension more exciting. So in partnership with Pension Geeks, Scottish Widows ran a double-decker bus on Pension Awareness Day, inviting workers to visit the bus, have a coffee and ask their most pressing questions.

Pension Day grew to Pension Week before becoming Pension Month. And what Robert learned from the miles travelled and hours of discussions was that the language of pension entitlement and decumulation could be boiled down to three critical needs:

  • What have I got?
  • Is it enough?
  • What can I do with it?

As more workers started to join the Pension Month conversations, the company bought their own retirement vehicles with fold-out classrooms to cater for the extra numbers. The Scottish Widows information sessions are now digital, with over 100,000 members joining the sessions in 2025 alone.

The key learning for Robert was the need to simplify the language of retirement:

“Through getting out and meeting so many people – whether digital or face-to-face – I was gifted about 6500 questions. These are the words our members use. So let’s use their language. And of course it was challenging from a compliance point of view, but it was necessary to simplify the language in order to make it easy for these members to engage.”

The power of comparison

Another innovation has been the Scottish Widows Pension Mirror. It provides an age filter that guesses the age of the member from their selfie and asks if they would like to know the average pension savings for someone of the same age. Averages are supplied by data from the Office for National Statistics. The user can also ask how much older or younger people might have.

According to Robert, this tool has been enthusiastically adopted, “…because it meets an age-old human concern – how do I compare?” The proof is in the pudding as it’s now been used over one million times and won 18 industry awards across Europe.

What does good engagement look like?

When asked to define strong engagement for a member of his fund, Robert replies that it means the customer knows:

  • How much they have
  • Whether they are on track for retirement
  • What the recommended actions are for their situation
  • Whether the anticipated retirement amount matches what they will need
  • Whether they feel in control of their financial future

The holy grail for Robert is the download of the company app. To date, Scottish Widows has had one million registrations, and they are pushing to increase this number further. Says Robert:

“When a member logs in, they see immediately what they have, required actions and a bright red action button. We have an engagement secret weapon too – Lloyds has over 28 million customers and they log into their online banking on average 26 times a month. If these customers also have a Scottish Widows pension, we show them that pension value right next to their bank account, it’s just another tile and it takes all the friction out of knowing your current pension balance.

“We are very tech-focused. Gamification is really important, to the extent that we have our own gaming team in Dundee, where the original Grand Theft Auto (one of the biggest gaming franchises) was conceived. If someone enters our pension app they will spend four minutes if it’s gamified, compared with 40 seconds if it’s not.

“Lloyds Bank is in the top 15 banks in the world for use of AI. We’ve started to introduce AI Agents into the app operating within the regulated boundaries. The brilliant thing is we have all these genuine questions people ask us – those 6500 recorded questions from last year have been fed into the agent alongside the answers – it’s learning just how our customers speak and how our products work”.

Another feature is the willingness to tailor communications to different audiences, using team members who genuinely understand the communities they're speaking to.

“We need to go where people are, talk the way people talk. Authenticity is key. People are using social media for all sorts of searching and in the UK we saw 118 million searches on TikTok for the word ‘pension’ last year – it’s a genuine resource. Short items get people interested. Simple measurements matter most – have they downloaded our app and used it? Have they come back again? If so, you can then nudge them to take next steps.”

It’s taken Robert’s team five years to achieve one million registrations on the app. Each month since there have been over two million log ins, and they hope to double that number over the next year.

On a separate note, next year the British government will introduce Pension Dashboards which means members will see all their pension savings in one place, so the question ‘what have I got?’ will be much better answered by technology.

What can Australia learn?

Before we finish, I ask Robert to share his thoughts on the Australian super system and where we are at when it comes to engaging members. He replies that he thinks we’ve done a good job on the accumulation side, but notes the size of our super savings pot is huge – but largely due to the high mandatory employer contribution of 12%. In the UK it’s 8%, and that includes an employee’s own contribution as well.

“Australia has got people in – in a way the government has given them a free kick – but I’m not sure that funds have yet developed the robust engagement that will see their members retire well.”

What do you think?

I tried out the Pension Mirror and got an age three years younger. I then went and put some makeup on and came up 10 years younger. Love it! Either way, the average savings by age were much lower than those in this country. But what a great tool to get people exploring and comparing their own retirement savings progress.

Interested in learning more about the Scottish Widows use of AI, gamification or their key metrics in a recent retirement report? They’re all covered as different topics in the Scottish Widows Workplace Savings podcast series.

 

Kaye Fallick is an independent retirement commentator and author, www.kayefallick.com. This article is general information and does not consider the circumstances of any person.

 

  •   5 August 2026
  • 12
  •      
  •   
12 Comments
tarks
August 06, 2026

I agree about OZ super being way ahead, but what I find confusing here is how/if your state pension will inter-act with your super at some point in retirement. At least anyone who has paid 35 years' worth of UK National Insurance contributions can be assured of getting a full state pension at 67, no matter how large their private pension or SIPP. I find this makes planning easier.

4
Dudley
August 06, 2026


'If you have less than 10 years of National Insurance (NI) contributions, your direct UK State Pension income is £0, because 10 qualifying years is the strict minimum required to receive any new State Pension. However, your total minimum income can be supported through means-tested benefits like Pension Credit, which guarantees a standard weekly income of £238.00 for single people and £363.25 for couples.':

Planning is easy with less than ~$A1,500,000.
Guild stairways to heaven and/or blow capital retaining $A499,000.
Collect Age Pension and return on remaining capital, reverse mortgage said stairways.

Rob
August 06, 2026

Yes but...... If you think of a State Pension as an "Annuity", there has a "fund" sitting there that can meet that "future Liability" and, in the UK, there simply isn't!. You are relying on future Govts and taxpayers to meet that liability and I have serious doubts about that as they are stupid.

Example - I paid National Insurance for years in the UK and I get a small UK pension which is taxable in Australia. My wife also gets a small pension and never worked in the UK! To make it more ridiculous you used to be able to "buy extra years" - my case paid them GBP 4500 and they pay me an extra GBP 1500 per year - not a bad return! No moral qualms, paid more than enough UK tax!

Bottom line - relying on any provider to pay you an income into the future for maybe 20-30 years, is as good as the Assets that back that promise. I personally see no reason to trust any Government!

2
Dudley
August 06, 2026

"no reason to trust any Government":

Trust a gilded home?

$A1,000,000, survival mode reverse mortgage $A25,000 / y = 40 y.

Plus real net return with real capital preserved:
= ((1 + (1 - 0%) * 5.5%) / (1 + 3.8%) - 1) * 499000
= $A8,172.44 / y

or planned death at $0:
= PMT(((1 + (1 - 0%) * 5.5%) / (1 + 3.8%) - 1), (97 - 67), -499000, 0)
= $A21,185.99 / y

'Who wants to live forever?'

1
Kaye
August 08, 2026

Hi Rob, yes, we have been good at decumulation. But do you think we are equally good at the next part - helping savers get there money out? It's not so much the blue bus that dazzles, more the idea of a senior fund manager bothering to get out from behind his desk and listen to members and their most urgent questions that impresses me. I genuinely love the face-to-face engagement involved in this initiative, warmest, Kaye

3
David
August 06, 2026

"If these customers also have a Scottish Widows pension, we show them that pension value right next to their bank account, it’s just another tile and it takes all the friction out of knowing your current pension balance."

Westpac/BT started doing this in 2007. Lloyds/Scottish Widows launched their version of function in 2018, 11 years later (according to Google AI).

Not a new thing. And not an innovation of Scottish Widows.

2
lyn
August 07, 2026

Kaye, gave me 1991 memory of Scottish Widows (pre Lloyds) when Father died & assisted my Mother re affairs, found Sc/Widows his w/place pension was during 35yr career, prior12 yrs to that an employer didn't offer w/place pension facility, was amazed at amount he received as hadn't known. They first class to deal with at difficult time. Being under Lloyd's umbrella for while amused, friend made redundant by them about 30yrs ago at 49, w/place pension enabled retire to Spain at existing holiday home & still does on Lloyd's pension after only a 31 yr career, methinks Lloyds not doing too badly depending on which side of its' fence one sits!

2
Errol
August 06, 2026

Big super was slow to embrace the Retirement Income Covenant. In fact several funds failed to implement the RIC by the mandated date.

There is a lot more advice from super funds for people in the accumulation phase but little for those in the income phase - large industry funds are too engaged in trying to boost their member numbers spending large amounts on “compare the pair” and showing ,embers riding around on “Blue Monsters”.

There is the usual end of year seminars (on line as well), Having attended many of these, they follow the usual bland performance review with the eternal get out of goal free card “we’re focused on long term performance” when results haven’t met stated objectives.

I wonder what the take up of RIC products has been? While there are some benefits for certain people, the products are poorly explained and require locking in a permanent decision. It often feels to me that my super fund ticked the box to comply with the RIC requirement but left it at that. My fund doesn’t even have advisers anymore, they will recommend some though. Invariably the fees are e pensive for once off advice.

So I don’t think big super or the Government have done enough to educate and support those in the income phase

1
Francis H
August 05, 2026

I think our retirement savings system could be improved if workers not only knew how they were travelling on any given day with their super savings but also what their age pension entitlements would be on that given day. A simple calculator might help. Of course , our current age pension system may not apply when they reach age pension age. For political reasons it will probably be very similar. Knowing how your super savings are travelling on any given day can be a two edged sword. If your savings are below those of the average worker it can lead to people taking risks to bring their super up to the average. I think we may have seen this in recent cases where workers were encouraged to leave perfectly good industry and retail funds for higher returns elsewhere. In many cases they have lost most of their savings. Would they have done that if they had known their aged pension entitlement ? A Government guaranteed pension entitlement would help, although as Sir Humphrey would say, that would be a courageous decision.

Kaye
August 09, 2026

Hi Francis - yes, you've nailed it - the interaction between Age Pension entitlements and super drawdown remains a mystery for most pre-retirees - given the different rules which might apply depending upon whether your are in a couple or single household, the type of assets you have and how deeming rates are applied, whether you want to work post eligibility age - good calculators can show these sums but it's difficult if your fund doesn't have one or cover all possibilities ...

1
Graeme Newcombe
August 10, 2026

Great article thanks

 

Leave a Comment:

RELATED ARTICLES

Rob Prugue’s spiritual super journey

Putting off that retirement speech

How much super should you have?

banner

Most viewed in recent weeks

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Lithium's latest drop and what it means for ASX investors

Lithium's latest sell-off has punished ASX miners as prices remain hostage to shifting expectations. The key challenge is navigating a market prone to extreme volatility despite a strong case for the long-term demand outlook.

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Latest Updates

Planning

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Superannuation

How much super should you have?

Average super balances are one of the most misleading benchmarks. They ignore your goals, spending and future needs, creating a false sense of security. Here is how I calculate exactly where I need to be at every decade.

Retirement

Retiring from work is easy, retiring into life is harder

Most people spend decades planning how to retire. Far fewer plan for what comes next. The biggest retirement challenge isn't always financial, and it often catches even the most prepared retirees completely off guard.

Shares

Right asset class, wrong index: the trap in Australian small caps

Most Australian portfolios are concentrated in large caps, with relatively little exposure to smaller companies. But what if the biggest risk isn't the economy, interest rates or valuations? For many, the risk is hidden in plain sight.

Property

Are these assets the missing piece in Australian portfolios?

Many investors remain concentrated in shares, cash and property. Despite their popularity among institutional investors, real assets remain underrepresented in many SMSF portfolios. Could they be the missing piece?

Investment strategies

The biggest risk that buy-and-hold investors ignore

Investors spend decades learning how to stay invested, yet few have a plan for getting out. When a financial goal has a hard deadline, a worked example shows why a fixed derisking schedule should outrank buy-and-hold discipline.

Investment strategies

How passive investing is driving the decline of active fund alpha

Why have active managers struggled as passive investing has surged? Research suggests that flows into index funds and ETFs are creating structural headwinds, penalising the stock-picking strategies that once generated alpha.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.