Communication strategies in the operations of Retirement Benefit Schemes: a case of defined contribution (DC) schemes
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The study aimed at finding out the communication strategies that are employed in the operations of the defined contribution pension schemes The study was guided by the following research objectives: to identify members' information needs with regard to the defined contribution pension schemes; to identify the level of knowledge of the members of defined contribution schemes and; to identify the communication strategies employed by trustees in defined contribution scheme. The study targeted 93 respondents initially although 63 respondents responded to the questionnaire translating to a response rate of 67.74%. Majority of the respondents were male. Majority of the respondents were aged between 20- 39 years. Majority of the respondents had first degree of education. About two thirds of the respondents indicated that their pension trustees had not communicated to them in the past three months. Half of the respondents indicated that they were aware of the risks involved in the Defined Contribution plan. Half of the respondents seemed to be knowledgeable about their pension scheme activities. About two thirds preferred someone else to make investment choices for them. On how well informed the respondents were about the details of the Defined Contribution pension plan, half of the respondents indicated that they were very informed on the dynamics of a DC scheme. Half of the respondents indicated that they moderately required advice from their employer and independent financial advisor. Majority of the respondents indicated that they were confident to manage their investments during retirement and were confident to allocate their investments and savings to different types of investments. On an open ended question, the respondents cited the online communication strategies as the most efficient method fund managers and trustees should adopt. In conclusion. the study supports the notion that members of Defined Contribution have not been well communicated on the risks and investment opportunities involved in Defined Contributions as majority of the members were still eager to know what their role as members were in the newly converted schemes.