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 Taxes are due when money is withdrawn.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

Email

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 jennifer.stickney@sentinelgroup.com

Lisa Francis Director, Customer Experience Strategy

(781) 914-1227 lisa.francis@sentinelgroup.com

Thank you!