Talk about a creative use of marketing dollars. Voya Financial will give every baby born in the United States on October 19, 2015 a $500 mutual fund investment. The Center for Disease Control and Prevention puts the average daily birthrate at 10,829, so the company formerly known as ING is on the hook for about $5.4 million if they all sign up—but it’s well worth it.
The second annual Voya “Born to Save” campaign is timed to coincide with the first working day of National Save for Retirement Week. The company says it was introduced last year as a way to support the national savings event and help the next generation on its path to retirement readiness.
“While retirement is still a distant milestone for a baby, the goal of Voya Born to Save is to underscore a simple but important point – that it’s never too early to start planning and saving for the future,” Charlie Nelson, CEO of retirement for Voya Financial, said in a statement. “We are pleased to help the many babies born today who will one day be working towards their own financial goals. We also want to encourage all Americans to think differently about how they can prepare for retirement.”
In a recent survey of more than 1,000 new parents, Voya found that roughly four-in-ten (40%) spent at least $500 on baby-related items in the first year that they later determined were nonessential or they never used. Nearly one-in-five (20%) of the moms and dads spent over $1,000 on these items. The survey also found that a majority of this over-spending (60%) went to clothing, toys and baby entertainment, while approximately one-in-five (20%) went to upgraded strollers, baby carriers and accessories. A similar amount (20%) also went to expensive nursery furniture and decor.
“We recognize that families have many competing financial priorities in life, which can make saving for retirement even more challenging,” noted Nelson. “But what these findings show us is that as difficult as the saving process can be, there may always be a way to find some extra dollars to earmark towards retirement. Whether it’s cutting back on the more expensive items, setting and sticking to a budget, or making sure to pay your retirement plan first, the goal is to make regular contributions whenever you can – no matter how large or small – every step of the way.”
A gift for the ‘Class of 2014’
To further reinforce the benefits of consistent saving, Voya is also giving each Voya Born to Save baby from the Class of 2014 their own savings gift. More than 1,000 families established an account for their children in response to last year’s inaugural campaign. Tomorrow, October 20, 2015, is their first birthday and Voya will deposit an additional $50 mutual fund investment into their existing accounts.
“We think this birthday gift is a great reminder that saving for retirement requires regular attention, planning and contributions,” added Nelson. “While the realities of life can get in the way – especially for new parents during the early years – we encourage everyone to find simple ways to make saving a priority.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
