Road Test
What are some of the best materials advisers can use to alert defined contribution plan participants to their choices in optimizing retirement income? In this edition of Road Test, a new section in which we review a product or service, we examine retirement income marketing materials and look at the winners of the DC Communications Award.*
Submissions for the awards were examined based on their usefulness to the adviser and participant, their content, and their design. Although the content is important, we did give significant attention to the presentation of the materials; if the information is not presented in a friendly format, participants will be reluctant to engage with it. One criterion that was apparent in most entries, but not all, was a call to action, whether it told participants to contact their adviser, their DC provider, or do some homework before making such contact. This should be a vital piece in any marketing or communications materials.
When it comes to offering advisers materials to use with clients, Lincoln Financial Group was the best of the submissions. The company’s “Be a know-it-all” i4LIFE(R) Advantage campaign provides financial advisers with a complete package of print and electronic materials that include a core brochure, adviser and client PowerPoint presentations, seminar invitations, adviser and client interactive postcards, statement stuffers, adviser e-communications, and a client prospecting letter. These engaging and easy-to-understand materials allow advisers to discuss retirement income, specifically the i4LIFE Advantage product, with clients who are looking for answers to the uncertainty of outliving their income. These materials provide a comprehensive program that identifies an adviser as a resource for participants.
Merrill Lynch offers two sales brochures for its Retirement Income Service: one brief and one more comprehensive, allowing advisers to use the message that better matches a particular participant segment. Merrill Lynch advisers can distribute these brochures to plan sponsors and participants, giving them details of the service, as well as general information about the need to plan for their income needs in retirement. The brochures direct readers back to the financial adviser to help them create an income plan. Both brochures use graphical depictions of the process to show potential users what they can expect when enrolling in the program.
For programs that offer communications direction to defined contribution plan participants, Genworth Financial’s ClearCourse Personalized URLs program is tops, delivering an engaging overview of the product in an easy-to-use electronic format. Participants receive a CD that shows them a short movie, customized with the participant’s name, and the initial settings of the embedded illustration tool in the movie are set based on the participant’s actual circumstances. The movie also embeds links to the product provider’s and recordkeeper’s Web sites. This program, also integrating customized postcard mailings, offers plan sponsors a way to engage participants in retirement income planning without needing in-person meetings.
Another strong product is the “Destination Independence” campaign by Pacific Life Insurance Company, which offers multiple publications addressing issues of income in retirement, including: Social Security, inflation risk, and health care. The campaign is not product-specific, discussing types of solutions and offering readers a road map to establish an income plan. It is engaging and well-designed, using examples and statistics to show why participants may need more money to retire than they expect. It recommends that participants go to an adviser or a financial professional for further assistance, encouraging participants to reach out for help.
Retirement income is frequently a difficult topic. Materials that are able to tackle this topic without overwhelming the user are going to continue to be in high demand going forward.
*In the fall of 2007, PLANADVISER and RIIA sponsored the DC Communication Awards to recognize the best in communication materials designed for teaching defined contribution participants about retirement income. Submissions were reviewed by editors of PLANADVISER. A winner and runner-up were selected for each of two categories: materials for advisers working with retirement plans and materials for participants.