PLANADVISER - March/April 2019 - 18

Digital Communication Design
trendspotting
The user experience can help decisionmaking
AS the use of digital and mobile technologies
for employer-sponsored retirement
plans continues to increase, a
paper promoted by the Voya Behavioral
Finance Institute for Innovation
proposes that plan sponsors
and advisers have a responsibility to
consider websites and mobile applications
that encourage better retirement
decisionmaking.
The paper, authored by Shlomo
Benartzi, business school professor at
the Anderson School of Management,
University of California, Los Angeles
(UCLA), and senior academic adviser at
the Voya Behavioral Finance Institute
for Innovation, discusses how research
in the field of behavioral science reinforces
the role that digital resources
can play.
Benartzi points to studies showing
that, for example: The number of blank
lines on a retirement plan website
can help shape an employee's level of
diversification; enhancing the design
of an enrollment website can increase,
by 15%, the number of workers who
personalize their enrollment choices
and increase overall plan contributions
by 10%; and presenting higher default
contribution rates in an online enrollment
setting-those double and triple
the typically suggested 3% default
savings rate-can increase savings
rates without reducing enrollment.
" In an age when many individuals
are making important financial
decisions on their digital devices,
research tells us that the design of
the
screen-how information
and
choices are presented-can dramatically
impact
the way workers save, "
says Charlie Nelson, CEO of retirement
and employee benefits for Voya Financial.
" Because digital design can have a
strong influence on long-term results,
it's important to use design elements
that support a plan sponsor's ultimate
goal of helping its employees achieve a
secure financial future. "
Andrew Way, director of research -
annuity, life insurance and retirement,
at Corporate Insight, says, while
website and digital design is moderately
important, it is growing more so
every year. It is-or should be-part of
the request for proposals (RFP) process
for retirement plan sponsors, and it is
valuable to the participant experience,
he says. His firm examines how finanTALKING
POINTS
Biggest Threats People See
To Their Current Financial Health
cial service companies connect with
prospective and current customers via
digital channels and provides them
with research and actionable recommendations
to improve their digital
offerings and overall user experience.
He adds that access to information can
boost participant engagement.
-Rebecca Moore
High cost of living
Health care costs
56%
49%
Source: BlackRock, 2019 Global Investor Pulse Survey
Retirement Nest Eggs
On average, Americans have saved
$327,090 for retirement-an average
13.3% of their annual income.
Source: Kiplinger's Personal Finance
Retirees on Sound Financial Footing
77%
Have enough
money to pay
for health care
69%
Live as well or
better than when
they were working
59%
Will be able to
leave money to
family members
27%
Are able to help
family with tuition
or housing
Source: T. Rowe Price, " Retirement Savings and Spending: Behaviors and Attitudes
Toward Retirement "
Rising prices
34%
18 | planadviser.com March-April 2019
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PLANADVISER - March/April 2019

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