Do you know how long it takes most people to break their New Year’s resolutions?
According to a ComRes survey from 2015¹, 63% of UK adults admit they have not kept their resolutions in the past.
Of those, 43% didn’t last a month. 66% had lasted a month or less. And a whopping 80% had broken their resolution by the three-month mark.
New habits are remarkably difficult to ingrain – even when they are announced with great fanfare, even when you have the best of intentions, even when you start out strong.
And that has big implications, if you want to get your staff to save more into their pensions.
Over the past few weeks, we’ve been discussing the 5-step process you need to take your staff through, to get them to invest more for their retirement.
You need to help them internalise that if they don’t put more money away, they will likely not be able to retire comfortably. They need to make a general decision to change their savings habits, formulate a plan, and then act on it.
You might think that once they had been through this mental journey – which could take months or even years – they are now fully committed to building their pension pot.
But it’s just not true.
Saving is like any other behaviour or habit. It has to be maintained and people have to commit to it, again and again.
If they don’t, they might reverse course.
As soon as money is tight – for example, if they have to foot an unexpected bill or even see their spending go up around Christmas time – there will be a temptation to pare back their pension investment. They could even drop out of AE altogether.
It’s pretty easy to do… and then they’re back at Square One.
That’s why the fifth and last phase of our 5-step model to get people to save more for retirement is ’Maintenance’.
In many ways this is the most difficult challenge.
And that means that as an HR or Benefits director, you cannot afford to stop talking to people about pensions even if they have recently increased their contributions and appear to be – on the surface – convinced of their necessity.
You need to strengthen their resolve.
Your pensions comms must constantly confirm they were right to put more into their pension…
And remind them of the good reasons they decided to do so in the first place.
To ingrain the savings habit, you should also increase their financial literacy and help them make sensible financial decisions in other areas.
Here’s a snippet of a comms piece we have produced for people in the “Maintenance” stage.
It comes from a magazine we produce, to get people to think more deeply about their finances, their retirement and pensions:
That article is just one of many in the magazine…
Which in turn, is just one of many resources in our ready-to-go pensions communications package, which you can use in your own company to engage your staff with pensions and savings.
As well as a regular magazine, it includes fun videos (video is the future of pensions comms), easy-to-follow presentations, learning modules, interactive guides, in-person meetings with our consultants – and much, much more.
It also includes material to support your staff at every stage of their pensions journey – whether they are just starting to think about their pension and haven’t saved a penny, or whether they are seasoned savers whose good habits need to be maintained and encouraged.
They are all tried-and-tested, and easily customisable.
All that remains for you to do is put your own logo on them and watch as your employee engagement with pensions skyrockets.
To find out more about what’s included, and how it can help your staff save more, click here.
New Year’s resolutions are easily broken. But with the right comms, we can make sure that your staff put more money into their pensions – and then stay committed to that investment until they retire.
Topics: Next Generation Savings