Franklin Templeton Identify $1.5bn Per Year Increase in UK Pension Contributions
Adoreboard's Emotion AI was applied to Millennial pension survey and social data. Disconnects were identified that if rectified could result in a $1.5bn per year (£1.2bn GBP) increase in UK pension contributions from this younger generation.
Franklin Templeton Investments (FTI) is a part of Franklin Templeton Resources, a global investment firm founded in New York and one of the world’s largest investment managers and pension providers.
Challenge
The landscape for employee experience is shifting rapidly to an emerging young workforce with millennials predicted to make up 35% of the workforce.
To remain relevant to the pension conversation FTI needed to uncover how this younger demographic felt about pensions and responsible investing. The challenge was gaining actionable insights from a range of data sources, most notably, open text survey responses and unstructured social data.
Solution
Franklin Templeton used the Adoreboard platform to measure the emotional responses of over 2,500 people in relation to workplace pensions and responsible investment by analysing the unstructured text of survey responses and social media commentary.
Franklin Templeton were able to:
- Blend employee feedback and social media data to provide integrated insights.
- Eliminate manual analysis by 90% increasing the speed to insight.
- Link the drivers of employee engagement to financial impact of increased pension contribution.
Adoreboard was able to provide distinct and unique insights to move the debate forward for the UK pension industry on responsible investing.
Insights identified an ‘emotional experience gap’ for UK millennials demonstrating a wide disconnect between how people feel about their pension and what it currently delivers, particularly around responsible investment and ESG.
If responsible investment is more effectively integrated into DC investment design, it could serve the purpose of providing a significant boost to pension contributions, better engaging generation DC in their retirement savings and also providing additional capital for sustainable investment projects globally.
*DC = defined contributions.
The implication of the insight found that if pension providers could close this gap 45% of Millennials would increase their contributions. In the UK alone, this could result in up to £1.2bn ($1.5bn) per year increase to pension contributions.
The calculations are based on a total of 6.21m DC savers aged between 22 and 39 years old, earning the median UK salary of £28,086 (approx $35,000 USD) a year.
These key insights were covered by the Financial Times and available to view here.
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