How important is it to deliver targeted messages as we attempt to engage, communicate with and educate different participant demographics in our retirement plan?
In a word, very. Targeted communications and relevant tools, like mobile apps and online planners — preferred by 66% of Millennials and Baby Boomers, according to Willis Towers Watson — are critical devices to have in your retirement plan education arsenal. Each generation has different concerns, and so the guidance and messaging you deliver needs to be tailored to reflect them.
For example, education is especially important for Boomers, many of whom are actively preparing to retire. In this group, one in four has saved less than $5,000 for retirement, according to an Indexed Annuity Leadership Council (IALC) survey. Pensions aren’t much help, either — an estimated 56 million Boomers aren’t expected to receive any pension income, according to the Insured Retirement Institute (IRI), and future retirees will need more than $400,000 to fill the gap.
Research from NerdWallet suggests that for Millennials to accumulate enough for retirement, their savings rate needs to be at 22% starting now to accommodate for lower projected market returns.4 However, many are focused on paying off student loans, and an Allianz Life study shows 70% prefer to travel than to save. Educating this demographic about the importance of saving early, and illustrating for them how concepts like compounding make a significant difference over time, as well as showing them how today’s savings translates to tomorrow’s income, are key in convincing them to grow their nest egg along with planning trips to exotic locales.5 What’s more, Willis Towers Watson found that 59% of Millennials and 54% of Boomers valued tools to help them track retirement goals. These are just some examples of how tailoring key messaging and offering access to retirement planning tools can make all the difference in helping various generations get on track to more financially comfortable retirements. Learn more at http://tinyurl.com/WillisTowersWatsonsurvey