Predicting vesting behaviour at a pension provider

Next action predictor

Following the Freedom and Choice changes to at-retirement options, this pension provider experienced an increase in fund withdrawal and external transfers. PA were asked to identify the drivers behind customers withdrawing, transferring or reinvesting money from their pension funds, and to build a predictive model.

The challenge

How PA helped

PA used several customer and advisor attributes as predictors for at-retirement behaviour. This included the level and type of contact people had made with the pension provider, including complaints and valuation requests. We used these to build a first stage predictive model.

Benefit for the clients

Predictive analysis showed the relevance of customer contact behaviour as an indicator for withdrawing funds with over 70% accuracy. The client was able to use this to build more specific marketing campaigns and an improved customer contact approach, with the end-goal of ensuring customers are making well informed decisions at-retirement, potentially leading to better retention of funds.