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Focusing on the positive is key to successful communication on retirement issues, according to new research from investment managers Capital Group and market research firm Escalent.
“The Art of Retired Communicationfound that negative language, such as warnings of potential errors or phrases like “time is running out,” was the least likely to resonate with consumers. For example, only about a quarter (24%) of respondents said the phrase “unforeseen expenses can derail you” resonated with them.
Messages focused on successful planning or a comfortable retirement were much more appealing. A planning-focused message (“Plan for the retirement you deserve”) was found to be appealing by 44% of respondents, with 42% saying such a message would encourage them to take action.
Contemplating a secure retirement held an even higher place. Nearly half (48%) were drawn to “saving enough today to enjoy a comfortable future,” with 45% noting that such a statement would encourage them to take action.
Sticking to the facts was also a plus, with factual statements resonating far more across all demographics than product-related messaging.
According to the study, each generation has different expectations of what they want from retirement communications. The emphasis on planning means more to millennials and Gen Xers than to baby boomers, who prefer messages focused on the fun of retirement and the immediate steps they need to take to get there.
Millennials also said they found images used in retirement-related communications to be generally unappealing (“they mostly notice baby boomers, then tune out”). They also wanted to see “images showing the modern use of devices for planning”.
Baby boomers, on the other hand, have expressed a desire to see images that they find empowering. They also don’t appreciate “being portrayed as confused or at the mercy of a complex industry”.
The study also revealed a risk of relying too heavily on images. Noting that “the importance individuals place on an image is deeply personal,” the study’s authors note that an image that may appeal to a certain audience segment may be totally wrong for others.
Surprisingly, images depicting inclusiveness did not register particularly well with respondents. While respondents said they wanted to see diversity in communications, such images were less cited as less likely to encourage them to want to prepare for the future, want to save more, or create a plan. Language emphasizing inclusivity also missed the mark, with phrases such as “strategies for every life and every stage” coming across only four in 10 respondents.
Jargon-filled language was cited as another barrier to successful retirement communications. “Comprehensible language is often more reliable than imagery in relaying a message,” the study notes.
But the most important feature of successful retirement communication is to focus on both results and planning. “To prepare for retirement, people need to be able to imagine the end result.”
The Capital Group/Escalent study surveyed 2,451 people of age, gender and race/ethnicity in Q4 2021.