Organizations are taking a psychological approach to analyzing the way Americans think about their retirement.
New research from Capital Group studied close to 2,500 American adults and how they respond to retirement language and imagery, confirming a finding that the industry has understood for some time—there really is no one-size-fits-all approach to retirement communications.
The study included 590 images, 691 written messages, and 33 companies across financial firms’ websites, social media, blogs, and marketing content, and found several personal factors influenced preferences for both messages and imagery. Age, for example, was one of these influences. Phrases like “saving smarter for retirement,” appealed most to Gen X investors who want to ensure their money is working harder for them. Baby Boomers, on the other hand, found this type of language to be patronizing or condescending, according to the study.
“The research revealed that people can have messy, mixed and deeply personal emotions about retirement,” said Toni Brown, head of Retirement Strategy at Capital Group, in a press release. “At the same time, investors seem to want to know the pathway to retirement is doable, worth it, and in their control.”
According to the study, outcome-oriented messages such as “knowing that it’s possible to live the life I want in retirement,” proved more effective than messages about getting started and learning. Respondents also preferred factual statements over product-related ones.
Planning statements that position the individual at the center of the discussion around retirement, and enjoyment messages, were more appealing and likely to encourage action than negative language such as warnings of potential mistakes, or prevention messages.
“One of the most common mistakes” was the least preferred message, with 58% of respondents reporting they did not associate it with feeling more confident and 55% saying they did not associate it with wanting to save more.
Pictures are worth 1,000 words
Imagery also proved to be powerful to survey respondents. Pictures that focused on planning and included language like “plan the retirement you deserve,” appealed more to Millennials who still have decades to save for retirement. They were also popular with all age groups, as 50% of total respondents approved of images including scenes of people helping one another, and 47% of respondents liked pictures with images of planning, including people working on computers or tablets, or meeting with advisors.
Images showing senior individuals receiving healthcare or navigating obstacles appealed to 44% of respondents; pictures with growth on charts, or even metaphorical growth like plants or planting reached 41% of people; imagery with social enjoyment appealed to 35% of respondents; and images showing people learning, practicing a skill, or depicting self-improvement was approved by only 28% of survey respondents.
Imagery portraying enjoyment and transition rated higher with Boomers than any other age group, as retirement tracks closer for them.
Additional findings
Respondents were also surveyed on what images and language they would like to see more of in their retirement communications. Overall, respondents requested the following:
- Diversity of race and ethnicity as well as life stage and work setting, including retired singles, younger people and those working non-traditional jobs
- Portraits of retirement as a physically active time with a broader depiction of retirement activities
- Images of technology. Universally, respondents liked seeing the technology they use in their daily lives, such as tablets and smartphones
- People actively working in retirement as retirees are increasingly choosing (or needing) to pursue part-time work in retirement
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