Well-applied technology holds the key to enhanced user experience in a wide range of domains, and retirement planning is no exception.
Intrinsically ‘heavy’ fields like retirement planning tend to suffer from low levels of interest and engagement, resulting in sub-optimal value addition to (and value capture) from customers.
By identifying areas where the application of technology can create new opportunities for engagement, retirement plan management providers stand to gain significantly in brand perception, competitive advantage, and share of wallet.
Here are a few ways in which you can apply tech to help your customers with their retirement planning:
1. Gamification of retirement planning through micro-savings
Gamification is a trend that has taken businesses across sectors by storm as a great way to build greater customer engagement. The core of gamification is the simple concept of positive reinforcement – motivating customers through rewards, scorecards and leaderboards to perform desired actions.
When it comes to retirement planning, one excellent example of the application of gamification is through micro-savings, where a small amount is debited regularly – “change” from every online purchase, for example. This has led to the rise of several round-up apps that encourage savings.
This concept readily lends itself to application in the retirement planning domain, benefiting solid stickiness and engagement with the retirement provider brand.
2. Calculators and dashboards for visualization of savings
Many retirement readiness calculators exist today, where retirement plan participants can choose different savings rates and durations. The reports generated from these calculators help visualize how their retirement income would look.
However, one of the significant challenges customers face in retirement planning is data opacity. It tends to be very difficult to correctly understand where one stands and what the right next step should be.
A primary reason this is a difficulty is that numerous pieces of disparate data need to be brought together to create a meaningful visualization – such as social security, student loans, mortgages, outside savings, assets in other investment classes, etc.
However, we believe that this is a challenge that needs to be addressed to deliver a single comprehensive dashboard covering everything from internal rate of return (IRR) and return on investment (ROI) to setting and tracking goals and measuring retirement readiness, and more. This is part of Congruent’s CORE development pipeline – watch this space!
3. Automated features for easier customer operations
Technology can automate several routine and mundane client actions, making for a superior user experience. A great example of this is the Auto Deferral Increase (ADI), which allows users to set-and-forget the amount their annual contributions should increase for their retirement savings as they progress through their careers.
The other big one from an automation point of view for retirement planning is for plan participants to automate scheduled transfers from their checking or savings accounts to their retirement plan to ensure that they are moving consistently towards their retirement goals.
If you are a plan provider looking to deliver a streamlined CX to your customers as a point of differentiation, talk to us today! Our range of solutions are geared towards the unique needs of the USA retirement plan management industry, and we’ve added significant value to leading players in the space. Click here to schedule a consultation.
