The language surrounding pensions and long-term savings has a tendency to drift into abstraction, and not just when it comes to sustainable investment. We discuss assets under management, glide paths, contribution rates, and long-term risk. But behind every model is a person trying to live a normal life. For many, that life does not always allow space for the behaviours pension schemes rely on.
Watch the video interview or listen to the Risk, Return and Responsibility podcast below.
Blake Allison, Founder and Chief Executive of LifeCents in Washington DC, has spent more than 20 years working with employers and financial institutions across the US on financial wellbeing programmes. Speaking with him is a reminder of how far the industry has to travel if it wants people to feel supported rather than scolded.
What stands out first is how Blake defines the evolution of financial wellbeing. The first generation was all information. Companies gave people brochures, links and calculators and hoped for the best. The second generation layered on apps, nudges and tools. Useful in places, but still missing the point. As Blake sees it, the goal now is more complete. It is about helping people build resilience. Not just knowing what they should do, but understanding why they behave the way they do and which pressures shape their decisions.
It is here the conversation becomes much more human. Blake talks about treating people the way a good GP treats patients the first time they walk into a surgery. Not as account balances or cohorts, but as individuals with context, fears, habits and constraints. When he describes LifeCents as a form of “primary care for financial health”, you understand why pension communication often falls flat. People do not respond to being told they should save more. They respond when someone shows they understand why they are not saving.
We touched on the younger population first. Under thirty fives are passionate about sustainability and long term issues, but Blake is blunt about the clash between aspiration and reality. It is hard to focus on planetary outcomes when you are trying to get on the property ladder or coping with day to day financial pressure. The industry often romanticises their values without recognising the tension. As Blake puts it, people need to be self sustainable before they can think sustainably in the broader sense.
At the other end of the spectrum, the over fifties face a different problem. Many are discovering they are not where they thought they would be. Retirement is either postponed or cut short by health issues. And the gap between expectation and reality can be stark. Blake stresses the need for far more honest preparation. Not in a way that frightens people, but in a way that makes decisions real. The industry cannot assume retirement readiness that simply is not there.
The question of sustainability and returns inevitably came up. Do members really care where their money goes. Blake gives a measured answer. Some do, especially younger members. But he is clear about the need for transparency. If members are choosing sustainable funds without understanding the potential differences in risk and return, then we have replaced informed choice with well meaning intention. The role of financial wellbeing programmes, he says, is to help people make decisions with their eyes open. Passion is good. Blind spots are not.
Our discussion on communication drifted naturally towards the Canadian pension model. For many years, Canadian funds have quietly acquired and managed British assets with skill and clarity, while UK members are often left frustrated by mixed messages. Blake argues that members would benefit enormously from better explanations of why long term risk matters, why infrastructure investment is essential, and what the trade offs really look like. Again, it falls under the umbrella of wellbeing, not as an add on but as part of the core strategy.
I asked him whether anyone is getting this right. Not in a perfect sense, but in a direction of travel. He points to large US employers where financial wellbeing is viewed as part of corporate culture rather than a box to tick. He mentions Wells Fargo, where there is a strong link between community support, employee wellbeing and customer education. It is not glamorous work, but it is serious and it is consistent.
When we moved on to the question of habit building, Blake’s answer was straightforward. Telling people to save more does not work. It has not worked for decades. What changes behaviour is relevance. Tools that speak to someone’s life rather than their demographic category. He explains how LifeCents uses behavioural archetypes to personalise messages. For instance, someone who prioritises experiences might be encouraged to see how those habits affect long term goals, rather than being handed the same generic instruction as everybody else. It is a small shift, but an important one. It respects who the person is rather than who the industry wants them to be.
Social media came up, of course. Tiktok is now a louder voice in many people’s financial lives than their pension provider. That is a problem, not because short form content is inherently harmful, but because trust has moved. Blake argues that financial institutions need to reclaim that ground by creating content that people can believe. Not imitating influencers, but producing trustworthy stories, longer form where needed, that show real people navigating real financial decisions.
Before we closed, I asked for something practical. Where should an asset owner start if they want to take financial wellbeing seriously. Blake’s answer is almost disarmingly simple. Start with a financial health assessment. Not more brochures. Not another generic campaign. Understand the needs of your population, then build a programme that reflects those needs. Too many schemes launch wellbeing tools without understanding who they are trying to help. And too many members are overwhelmed by choice, which usually means no action at all.
What is needed now, he says, is orchestration. A single entry point that pulls existing resources together and connects people to what they need at the right moment. Not a new invention, but a clearer line through what already exists.
Speaking with Blake is a reminder that financial wellbeing is not a soft issue. It is structural. If members do not feel understood, they will not engage. If communication stays generic, people will look elsewhere for answers. And if the industry wants to build trust, it needs to start by listening.
This is not the work that makes headlines, but it is the work that shapes outcomes. And in a world of rising financial pressure and growing complexity, that matters more than ever.
