Behind the scenes of retirement saving
Johan - retouched
Meryl
Meryl - retouched
At the moment a grim picture of retirement saving is painted in the South African landscape. Many South Africans either do not have the funds to contribute to savings after their monthly budgets have been exhausted, or they feel that saving for retirement is just not that important.
However, the truth is that an individual may be faced with an uncertain future while he or she deals with an uncomfortable retirement. This is an ugly truth, if not a reality, that many who do not save for retirement will face.
Denying your future
Research shows that people tend to think of their future selves as strangers, which is why they do not really think too much about maximising ‘their’ retirement plans. FedGroup thinks about retirement all the time and recently launched a campaign based on people being in denial about their age in conjunction with retirement.
According to Ingrid Green, Marketing Manager of FedGroup, the campaign was developed around an undeniable human insight: no one wants to think about getting older because it forces us to confront our mortality.
“For this reason many older people try to dress fashionably, use cosmetics, and occasionally lie about their age. They want to appear younger than they are. Others take a more extreme approach, with an increasing percentage of the population turning to plastic surgery, Botox, implants, and other cosmetic procedures, in an attempt to deny life's harshest reality, but some people go too far. However, none of this behaviour changes the simple fact that a person is getting closer and closer to his or her retirement age, which is something that nobody should be in denial about,” says Green.
A cut-through campaign
The campaign is linked to real-life situations and how advisers all have clients like these. FAnews chatted to Green about the idea around the campaign, the story behind the campaign and why it is relevant to the retirement landscape.
Green mentions that communications agency, Bain & Bunkell, assisted with the campaign by researching the complexities of retirement products, and spoke to all those involved in the ‘selling’ process. These included employees, employers, brokers and the staff of FedGroup.
“One interesting insight is the disconnect between the ‘present’ and ‘future’ self. This adds to the already well-known aphorism that we are all in denial about getting older, anyway. As a result, very few people think properly about their retirement. This opened the door to our thinking that we needed a campaign that would cut-through this type of thinking,” says Green.
Green further highlights that the most visible aspect of this ‘age-denialism’ is the obsession with appearing younger, and the extremes some people will go to achieve this. “As a society, we seem fascinated by these individuals. Therefore, for the campaign, we chose these people as our models, in order to highlight the issues we are facing,” continues Green.
Through the research, Green points out that it was quickly discovered that South Africans who have had cosmetic work done are less willing to make this fact public than their US counterparts. “Therefore, our models, Meryl and Johan, were found after a search of around sixty prospects. It was important that they had characterful faces, without being well-known,” says Green.
“We worked with a great production team to perform ‘virtual’ plastic surgery. Our photographer, Russell Smith, has spent more than a decade in the industry. He has worked with local celebrities, including Freshly Ground, Trevor Noah and Nic Rabinowitz. Our retoucher, Amy Dresser, is based in Los Angeles and has worked with some of the best and brightest. Her portfolio includes collaborations with Britney Spears and Katy Perry,” continues Green.
She mentions that the actual shoot took a day, and the retouching approximately four more. Ultimately, these arresting images are complemented with some serious copy. “People cannot change the fact that they are going to reach age 65 – no matter how hard they try. Planning for retirement needs to be addressed with urgency,” says Green.
See the specially created microsite, www.age65.co.za
A shift in attitudes
It is important to note that clients need to be informed to make sound financial decisions. This is where financial advisers play important roles to ensure clients are fully educated and aware of what products are available to them.
Green says that getting clients to choose a plan that aims to maximise their returns, while keeping fees as low as possible will mean they will retire well and possibly earlier.
“The fact of the matter is that retirement – like petrol – is a low interest category, if not a grudge purchase, which is why people tend to commoditise, rather than make distinctions on brand and product. However, it is no longer merely a case of simply ensuring that a client saves for retirement. With the complexity in the market and the way many funds are structured today, investors, under the guidance of their advisers, need a more considered approach in choosing the right retirement plan. Choosing to ignore these issues and ‘trust the devil you know’ will deliver lower returns in the long run,” she says.
An adviser needs to ensure that maximum contributions are actually being invested for the member's ultimate benefit. “The best solution is investing in a fund that has been designed to maximise member value. While these offerings may not always be the most popular, when it comes to retirement investing, the right approach should always trump the popular one. Much like the campaign message, advisers should make people think again about the choices they make with regard to their retirement, and the steps they are taking today to secure a comfortable future,” concludes Green.
Editor’s Thoughts:
People are getting closer and closer to their retirement age but as Green points out, people are denial about their age in conjunction with retirement. The campaign is relevant to the retirement landscape as it covers the issues we are currently facing. In real life situations, there is no doubt that advisers have clients like these. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
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