Consumers Want ‘Complete Digital Lifestyle’

Everyone does not yet own everything, but that doesn’t mean they’re not trying to.

Consumers are creating highly personalized constellations of products and services on their way toward “a complete digital lifestyle,” according to the latest Digital Consumer Tech Survey by Accenture.

Polled on their usage and buying intentions for various consumer electronics devices, participants said they want the newest and most innovative gadgets even if they already own a staple of consumer electronics. Consumers not only plan to fill gaps and replace current products, but to a large extent they will simply add more of the same.

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How many devices does one person want? About a half of survey respondents say they prefer using multiple devices for different purposes. But almost a third (29%) report wanting just one device for all the functionality they need. This consumer segment consists mainly of late adopters in technology adoption.

Another segment that prefers a single personal device is within the 14- to 17-year-old group, about a third of whom like to access email, the Internet, TV, music, phone calls and more on one piece of personal technology. In other words, not everyone is excited by the thought of multiple devices.

Among the findings in the survey:

  • Smartphones rank as the second-most owned pieces of digital consumer technology among 14 categories.
  • Nearly three-fourths of respondents own a laptop computer, 69% own a smartphone, 57% an HDTV, 37% a tablet and 37% a home gaming system.
  • Owning a smartphone does not preclude consumers from owning other connected devices. More than a quarter of those surveyed own the combined set of a smartphone, laptop and tablet.
  • Looking forward a year, multi-function devices are likely to dominate purchase plans as smartphones, HDTVs and tablets top the list of devices that consumers plan to buy.

Most respondents plan to purchase new devices in the next 12 months despite already owning an earlier version of the device. Among the 52% of consumers planning to purchase a smartphone in the next 12 months, only 4% don’t currently own one. About a third (29%) plan to purchase a replacement for their current smartphone and 19% plan to buy one in addition to the one they currently own.

Almost half of consumers in the U.S. (45%) intend to buy a smartphone soon, compared with 35% last year. When the survey was last conducted, 18% of respondents planned to purchase a tablet. This year, a third plan on buying one.

Accenture’s Digital Consumer Tech Survey polled 6,000 consumers in six countries. The survey covers attitudes about technology ranging from computers and tablets to televisions and gaming systems.

Considering Millennials in Plan Design

Plan sponsors should factor in the needs of Millennials when designing their company’s retirement plan, says a new paper.

The paper, “Retirement Plans for the Millennial Workforce: New Values Need New Plan Designs,” was recently released by Buck Consultants and examines the traits of employees born after 1980 (i.e., Millennials) and how plan design can reflect these traits.

For one thing, Millennials are technologically savvy, so presentation of plan information is important, says Jerry Levy, a principal and retirement consultant in Buck’s Chicago office, and co-author of the report. “Millennials are used to having information on demand, and it being presented in the most up-to-date way,” he tells PLANADVISER. “You need to have an attractive Web portal that meets their expectations.” The website features should be user-friendly and intuitive, he says, as well as include links to frequently asked questions, blogs and discussion areas.

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Millennials also have a tendency to act later rather than sooner, says Levy, so plan features should anticipate this. He adds, “Automatic enrollment and automatic escalation would be very helpful to them.” Similarly, plan sponsors should consider offering managed accounts and target-date funds as part of their investment options, he says.

Plans may want to address retirement-related tax issues. “Since some Millennials may be in a higher tax bracket when they retire, you may want to have a Roth option for your plan,” says Levy. This way, they can take care of taxes now and not have to worry about them later.

Levy also recommends plan sponsors offer Millennials the means to recognize current economic conditions and adjust savings goals accordingly. Millennials will appreciate an outcome-based DC plan that comes “fully loaded” with pre- and post-retirement features, helping individuals better prepare for retirement. It will enroll them in the savings plan with a realistic savings target, select appropriate funds, and make adjustments as needed, the report says.

Finally, Levy notes that Millennials are a more mobile work force, staying employed with a company for shorter lengths of time than their predecessors. “They may leave one job to learn more at a new one.” Giving Millennials the means to roll over their retirement balance from a previous employer can be useful, especially from a recruiting standpoint.

A copy of the paper can be downloaded here.

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