The Research
For its study, CRR presented one of four ads to four groups
of participants. The headline of the two abstract ads said, “Why you should
save more now to ensure you are on the right path to retirement.” The two
concrete ads said, “How you can save more to ensure you are on the right path
to retirement.”
Abstract or concrete wording was also embedded in
descriptions of what participants could do to save. The two abstract ads gave
vague, nonurgent directions: “If you haven’t done so already, you may want to
consider setting up a retirement account,” and “You should consistently
contribute an amount of money that you can afford.”
In contrast, the two concrete ads advised participants to
take four specific steps: Set up your 401(k) or IRA through your employer or
financial adviser; aim to contribute 15% of your paycheck or consistently
contribute what you can and slowly increase the amount, if possible; invest in
a single balanced fund that automatically adjusts the level of risk as you age;
and review your account each year to ensure it is meeting your objectives.
Rebecca Moore