Data & Research July 26, 2016

Targeting Demographic Groups Pays Off

Younger people are mostly focused on matches, while older folks concentrate on distribution options.
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Age-specific strategies to reach retirement plan participants, rather than a one-size-fits-all approach, is the most effective method for plan sponsors to help participants become retirement ready, OneAmerica found through a five-month analysis of 10,500 visitors to its participant website.

Between September 2015 and January 2016, 29% of people between the ages of 18 and 34 visited the OneAmerica participant website, as did 25% of those between the ages of 35 and 49, and 36% of those 50 and older. Twenty-three percent of those younger than 35 think about retirement every week, compared to 27% of those ages 25 to 49 and 45% of those 50 and older.

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Forty-eight percent of those 50 and older monitor their retirement plan at least once a month, followed by 44% of those younger than 35 and 40% of those ages 35 to 49. Fifty-five percent of those 50 and older say it is very important to track their retirement plan status, compared to 49% of those in the 35 to 49 age bracket and 47% of those younger than 35. Participants 50 and older are most interested in retirement plan investment and distribution options, while those younger than 35 concentrate mostly on employer matches.

“To reach employees, plan sponsors and financial professionals should create targeted communication strategies that factor in age demographics,” says Marsha Whitehead, vice president of marketing for retirement services for the companies of OneAmerica. “Segmenting employee populations by age could be an effective way to provide more personalized and effective messaging, because respondents show variations in retirement planning triggers, potential roadblocks and preferred communications by age.”

Products July 26, 2016

Fidelity Creates Charitable Planning Program for Advisers

The program aims to help advisers align with clients’ charitable goals.
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Fidelity Charitable has launched the Charitable Planning Practice Management program, aimed at helping advisers work with their clients’ on their charitable goals.

“With up to 27% of the $30 trillion expected to transfer from the Boomer generation to their heirs by 2006, charitable planning, as part of holistic wealth management, is a significant client need,” says Krystal Kiley, vice president of relationship and practice management at Fidelity Charitable. “Advisers who incorporate this into their client conversations will differentiate themselves and earn the trust of the next generation. Our mission is to make charitable giving more accessible, and our Charitable Planning Practice Management program is an integral part of that effort by providing education and consulting to help advisers and firms successfully incorporate charitable planning and sophisticated philanthropic strategies.”

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A survey of high-net worth adults found that financial security for their family is their foremost goal, followed by achieving financial independence and then giving back to society through philanthropy.

The program first evaluates advisers’ skills and assesses their needs. It offers workshops and webinars at the Fidelity Charitable University. It includes guides, case studies and study groups with other advisers, CPAs and attorneys.

Each adviser who signs up for the new program can learn about key topics, including essentials in charitable planning, funding philanthropy through non-publicly traded assets and how to engage clients’ families and the next generation with charitable planning.

“Advisers are constantly seeking ways to add value for their clients,” Kiley says. “Philanthropic planning can provide that opportunity by helping connect an adviser with his or her clients’ entire family, including their heirs, and create a philanthropic legacy that spans generations.”

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