Simple changes in approach can help advisors capitalize on untapped potential.
As the Baby Boomer generation – 70 million strong – begin
their exodus from the office and into retirement, there’s an even larger
generation starting to replace them. At 77 million strong, the millennials are
about to become the driving force in corporate America.
They’re also about to be introduced to the idea of
retirement investing. Yet how many of them are interested? Plenty, it seems.
According to a Franklin Templeton Investments survey of over 2,000 adults, the
younger generation say they’ll have a better retirement than past generations.
That should make the job of a retirement advisor easy, no?
Alas, while millennials are confident in their ability to
save, they’re not doing it via a retirement plan. The survey found that 40
percent say they don’t have a retirement income strategy, and 57 percent
haven’t started saving for retirement.
That means retirement plan advisors have a challenge. Yet
they also have an opportunity – that 57 percent is a deep well of prospects to
attract into a retirement plan. But it’s going to take more than the annual
benefits meeting to convince cash-strapped millennials to start saving for a
future long in coming.
Just as the face of today’s workforce changes, so should the advisor’s methods of attracting their business. Here are a few strategy shifts that can bring noticeable impact:
Get social. Employees of all age groups are plugged in, but
no one more so than the millennial generation. Grow a following on social media
by sharing content with your audience that speaks to the very real needs of
each demographic. Articles on how to save while paying off student debt.
Resources for budgeting the new house while maintaining retirement savings
contributions. Why a new baby signals a review of a retirement portfolio. Tap
into the life changes that impact the bottom line of your plan participants.
Get to the point. In a climate where messaging is inundating
us from every device, long sales letters are quite often overlooked. However,
don’t forego the snail mail. Mailed letters have become novelties, which has
created a bit more interest than another email. Change up the message, though:
create shorter, more succinct sales messages that target one aspect of
retirement saving: time to increase the annual contribution or explaining the
different allocation strategies.
Sell the sizzle, not the steak. Don’t try selling employees
on the history of your firm or the experience you bring to the job. Make it
about them: show them the benefits of investing. How much money would a
contribution of 6 percent of their income create in about 30 years? How can
they start now to afford that second home when they’re in their 50s?
Get personal. Be that trusted resource who’s easy to connect
with. Send out those emailed newsletters with helpful articles, send the
focused snail mail letters, and keep the messages regular on social media. The
tone should be friendly and conversational, and genuine. Be the advisor who
offers to help them understand various retirement plan components.
Whether marketing to the millennial or to the 40-something employee, retirement advisors have an opportunity to reframe their marketing messages to attract more business. Plus, by giving prospects the information they want in a way that educates them on their options, advisors can be yet another benefit to retirement investing.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.get xpress proposal