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Leverage C ommunication to Increase Retirement P lan Effectiveness Lisa Francis Director, Customer Experience Strategy Jen Stickney Investment Consultant
Leverage C ommunication to Increase Retirement P lan Effectiveness
Lisa Francis Director, Customer Experience Strategy
Jen Stickney
Investment Consultant
Why are you here at our Education Exchange? I received an email invitation
I have attended in the past
I heard there was free food!
Someone I know told me about it
Why save for retirement?
Why save for retirement?
Make your own schedule
Have an extra cup of coffee
No need to hurry out the door
Why save for retirement?
This chart illustrates the advantages of starting a retirement savings plan as early as possible. The example assumes an annual income of $40,000 (without increases), 6% contribution, 8-10% rate of return, and monthly compounding. This chart is hypothetical and for illustrative purposes only. It is not intended to represent the performance of any specific investment. Actual returns will vary and principal value will fluctuate. Taxes are due when money is withdrawn.
Why save for retirement?
Why save for retirement?
Why save for retirement?
Source: Genworth Financial
Nursing Home = $212/day
Assisted Living Facility = $3,500/month
Home Health Aides = $20/hour
Adult Day Health Care = $65/day
Why save for retirement?
Why save for retirement?
Why save for retirement?
What to communicate? • Back to the “why” – different messages depending on motivating drivers
• Customizing communications to target different demographics results in more effective messaging
• Different ages call for different needs
• Budgeting • Developing a simple
savings plan • Managing Debt • Retirement savings
concepts
• Prioritizing Goals • Incorporating
other goal planning (i.e., life insurance)
• Advice about broader financial planning and efficient ways to invest
• Working with a financial advisor
• Building retirement transition plan
• Saving most efficiently in remaining working years
• Optimal use of multiple income sources
• Healthcare savings plan
• Estate planning and wealth transfer
Customized Participant C ommunications
Stretchers Life Builders Accumulators Transitioners Established Maximize savings opportunities and get to solid financial ground
Support “life- building” needs and begin to think about long-term planning
Address increasingly complex financial decisions and situations
Shift from accumulation focus to retirement income plan
Help manage total financial needs in retirement
What to communicate?
• Don’t assume knowledge
• Be mindful of subconscious biases
63% 20%
8% 6% 3% Which of the below describes a 401(k)?
Retirement savings vehicle
Tax credit for retirement
Type of tax form
Tax-free Health Savings Account
Insurance claim
Source: GoBankingRates
When is the best time to communicate?
Who should relay the message?
Where and how to deliver the message Top 3 Most Popular Channels Based on Age:
Born before 1944
Phone 55.6%
Paper Mail
17.2%
Electronic Messaging
6.6%
Born before 1945 - 1960
Phone 59.6%
Electronic Messaging
22.5%
Paper Mail 13.4%
Born before 1961 - 1989
Phone 46.3%
Electronic Messaging
44.1%
Paper Mail 20.7%
Born before After 1990
Electronic Messaging
42.3%
Social Media 36.4%
Smartphone App
31.9%
Source: Dimensional Data
Where and how to deliver the message
Plans can see up to a
50% increase
in communications with Millennials by using social media rather than depending on phone and in-person interactions
Source: Corporate Insight
Where and how to deliver the message Personal Meetings Group
Meetings
Newsletters
Posters
Video
Blogs
Podcasts
HRIS
Surveys
Different types of messages to deliver
General 401(k) Introduction/Retirement Basics
Investing Basics
Financial Planning
Estate Planning
Social Security & Medicare
In conclusion… • There is no “one size fits all” approach to communication • Early and often is key to keeping your plan top of mind • Targeted messaging works well when you can accurately gauge
your audience • Use variety in your content and delivery methods for
maximum impact
Jennifer Stickney Investment Consultant
(781) 914-1290 [email protected]
Lisa Francis Director, Customer Experience Strategy
(781) 914-1227 [email protected]
Thank you!
