Capital Group survey highlights need for personalized messages to engage disparate audiences
LOS ANGELES, November 16, 2022 /PRNewswire/ — While there’s no one way to speak effectively about retirement to all of America, the language used in retirement communications is important – and is often a way to communication more reliable than imagery – according to new research from Capital Group, home of US funds and one of the world’s leading investment management firms.
“This research clearly shows that the language and imagery we use in retirement communications is important for impacting people and inspiring them to action,” said Tony Brownhead of retirement strategy at Capital Group. “As an industry, we need to understand how the two work together and connect emotionally between audiences, so we can better educate, guide and support Americans on their retirement journey.”
The study of 2,451 American adults included an audit of 590 images and 691 text messages from 33 companies across multiple platforms, including financial company websites, social media, blogs and marketing content. The results highlight that there is no one-size-fits-all approach to retirement communications. People have a strong sense of individuality and are drawn to messages that recognize and meet their specific needs. The age of the audience, for example, strongly influences preferences for written messages and images.
- Smarter/better messages, for example phrases like “save smarter for retirement”, appeal most to Gen X investors who want to know that their money is working for them to the greatest extent possible, while baby boomers may find this language condescending or condescending.
- Planning imagery and language such as “plan for the retirement you deserve” appeals more to millennials who are just starting to save and have plenty of time to prepare for retirement.
- Images illustrating pleasure and the rate of transition are higher among baby boomers than among their younger counterparts, as retirement may be closer and less speculative for them.
“Research has found that people can have messy, mixed, and deeply personal emotions about retirement,” Brown said. “At the same time, investors seem to want to know that the path to retirement is doable, worth it, and in control of them. When it comes to language, factual and straightforward statements about positive outcomes resonate most.”
- Results-oriented messages such as “knowing that it is possible to live the life I want in retirement” are more effective than messages about getting started and learning. Respondents also preferred factual statements to product-related statements.
- Planning statements that place the individual at the center of the retirement discussion and messages of enjoyment are more appealing and likely to encourage action than negative language such as warnings of potential mistakes or messages of prevention.
- “One of the most common mistakes” was the least preferred message, with 58% of respondents saying they didn’t associate it with feeling more confident and 55% saying they didn’t associate it with desire to save more.
When it comes to images, the study found that those showing people supporting them and planning images are the most appealing, 50% and 47% respectively. The least preferred images were in the category of prevention, for example, where elderly people were depicted receiving healthcare.
The research revealed how difficult it is for an image to elicit a uniform reaction, with a wide range of responses to each image. Also, the respondents were not particularly quick in their reactions, in relation to the language. Many had to stop and think longer. Similar surveys conducted in other industries, for example to gauge consumer product preferences, often generate quick and confident reactions. Slower reaction times can underscore the discomfort or uncertainty that many people feel about retirement and/or investing.
Overall, survey participants indicated that they would like to see more of the following elements in retirement communications:
- Diversity of race and ethnicity as well as life stage and workplace, including retired singles, young people and those working in non-traditional jobs.
- Portraits of retirement as a period of physical activity with a broader description of retirement activities.
- Technology pictures. Overall, respondents liked seeing the technology they use in their daily lives, such as tablets and smart phones.
- People who are actively working in retirement as retirees are increasingly choosing (or needing) to pursue part-time work in retirement.
About the study
Capital Group partnered with market research firm Escalent in Q4 2021 to survey and interview 2,451 U.S. adults in a variety of employment situations, including advised or self-employed investors and a mix of age, gender and race/ethnicity. All qualify as investors by having at least one account, such as an IRA, employer-sponsored retirement account, brokerage account, or digital investment account. The study included an audit of hundreds of written messages and images that make up today’s retirement landscape – taken from financial firm websites, social media and marketing content – followed by sentiment and reaction analysis. participants in these communications.
For more information and the full report, Click here.
About Capital Group
From September 30, 2022Capital Group manages approximately $2.1 trillion of equities and fixed income assets for millions of retail and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Bond investment professionals research and manage bond investments across the Capital organization; however, for securities with equity characteristics, they only act on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.
American Funds Distributors, Inc., Member FINRA.
Media contacts:
Nathalie MarineCapital Group
[email protected]
Tel: (213) 615-4508
Cell: (917) 575-1528
Caroline SemerdjianCapital Group
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Tel: (213) 615-3185
Cell: (415) 572-5828
SOURCE Capital Group
