Building An Online Pension Tool That People Love To Use

What does it take to create a self-serve pension tool that supports users in making confident, informed decisions about their retirement savings?

In this episode of Digital Customer Communications, Kevin Hollister, founder of Guiide, shares his experience developing a self-serve online tool that simplifies the complexities of retirement planning.

Kevin’s insights reveal how understanding user needs, simplifying complex processes, and focusing on clear guidance are essential when creating digital tools that customers will actually use.

Establishing Demand: Knowing What Customers Really Need

Kevin highlights the importance of understanding demand before developing any self-service tool.

Many customers are looking for accessible ways to independently tackle the complexities of retirement planning.

Guiide began by researching popular search terms like "pension calculator" and "how much money do I need at retirement".

This showed that thousands of people each month seek guidance on converting their pension savings into lasting retirement income, often without the support of a financial adviser.

"We looked at Google search terms and found that over 100,000 people a month were searching for help converting their pension pots into a sustainable income for life."

— Kevin Hollister, Founder of Guiide

This research confirmed the need for a self-serve tool that provides clarity on converting pension savings into income, which became the core purpose of building Guiide.

Simplifying the User Journey to Improve Completion Rates

Initially, Guiide’s retirement planning tool was detailed and comprehensive, but only 1–2% of users completed their plans.

By analysing user feedback and behaviours, the team at Guiide realised that simplicity would be key.

They reduced the number of steps, made interface adjustments, and added a more intuitive layout to make the tool easier to navigate.

"It became evident to me really quickly that we had to simplify things down to make that flow through the journey much better."

— Kevin Hollister, Founder of Guiide

With these changes, Guiide’s completion rate jumped to around 50%, showing that a streamlined experience significantly enhances usability and encourages users to complete the planning process.

Anchoring Users’ Expectations With Practical Guidance

One of the major challenges in retirement planning is setting realistic income expectations.

To address this, Guiide incorporated "anchoring" by using the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards, which offers benchmark figures for different retirement lifestyles.

"Giving people an anchor in terms of a reasonable living standard really helped. If you say to somebody, 'How much do you think you need?' it could be anything. But if you give them a grounding, it's much easier for them to plan."

— Kevin Hollister, Founder of Guiide

These anchors give users reference points, helping them make practical decisions without feeling overwhelmed by abstract numbers.

Providing Solutions Instead of Complex Variables

The team's approach emphasises providing clear solutions rather than overwhelming users with numerous adjustable variables.

Guiide originally allowed users to set multiple custom inputs for calculating retirement income. However, feedback showed that customers preferred simple, actionable guidance.

Now, Guiide offers three straightforward outcome options—"reduce income," "increase contributions," and "use other assets"—to help users align their finances with retirement goals.

"We have three solve buttons now: reduce income, increase contributions, or use other assets. We found that giving people the answer rather than variables to play around with worked really well."

— Kevin Hollister, Founder of Guiide

These options allow users to make clear, confident choices without too much cognitive burden.

Personalising the Tool for Different Demographics

Although the team originally envisioned Guiide for users with smaller pension pots, they found that most users had larger pension assets, averaging around £300,000.

Guiide was adapted to accommodate both demographics by adjusting the default settings in various use cases and deployments.

For instance, users with smaller pots might have different recommended default settings to prioritise their retirement income.

"The demographic using Guiide is probably more wealthy than I had initially envisaged. For users with smaller pension pots, we adapt the default settings to meet their needs."

— Kevin Hollister, Founder of Guiide

This flexibility makes the tool relevant to a broad audience, demonstrating how digital planners can personalise recommendations to suit diverse financial profiles.

Clarifying When Professional Guidance May Be Needed

The team emphasises the necessity of guiding users on when to consult professional advice.

While Guiide provides extensive self-service guidance, some aspects of retirement, such as complex drawdown decisions, may require professional support.

For these users, the team recommends consulting a financial adviser.

"If you can’t use a tool like Guiide unaided, then execution-only drawdown shouldn’t be something you’re doing. You should be seeking advice."

— Kevin Hollister, Founder of Guiide

This guidance helps users make decisions with confidence while being aware of the limits of self-serve tools.

In Summary

Deploying a self-serve pension planner that customers will use requires a deep understanding of their needs, a commitment to simplicity, and a design focused on clear outcomes.

By anchoring user expectations, offering straightforward solutions, and adapting for different demographics, Guiide demonstrates how digital tools can empower customers to plan for their financial futures confidently.

Kevin’s insights underscore the value of balancing independence with clear guidance, helping users navigate complex financial decisions with ease.

References:

Digital Financial Tools Saving Consumers on Average £37 per Month, Credit Connect, 2024

Best Retirement Calculators, Rob Berger, 2024

Digital Tools Boost Canadians' Retirement Savings, Wealth Professional, 2024

How Digital Communities Can Drive Financial Decision-Making and Customer Satisfaction, Financial Health Network, 2022

The Top Three Digital Challenges Faced by Financial Institutions, Forbes, 2021.

Providing Solutions, Not Variables in Financial Tools, The Review of Financial Studies, 2024

Digital Technologies Can Help People Save for Retirement, Lund University School of Economics and Management, 2024

How Financial Planning Technology Can Improve Consumer Pension Optimism, EV, 2023

Financial Tools for Retirement Planning, ClickDo, 2024

Meeting the Self-Service Needs of Today’s Financial Consumers, DocuSign, 2023

Reviewed By:

Sabrina McClune, 25.10.24

Sam Kendall, 25.10.24