Online Investor Education Web Resources for Retirees

Exclusively for IRI Members

Published: April 2013

About IRI The Insured Retirement Institute (IRI) is a not-for-profit organization that for more than twenty years

has been a mainstay of service, commitment and collaboration within the insured retirement industry.

Today, IRI is considered to be the authoritative source of all things pertaining to annuities, insured

retirement strategies and retirement planning. IRI proudly leads a national consumer education

coalition of nearly twenty organizations and is the only association that represents the entire supply

chain of insured retirement strategies: Our members are the major insurers, asset managers, broker-

dealers/distributors, and 150,000 financial professionals. IRI exists to vigorously promote consumer

confidence in the value and viability of insured retirement strategies, bringing together the interests of

the industry, financial advisors and consumers under one umbrella. IRI’s mission is to: encourage

industry adherence to highest ethical principles; promote better understanding of the insured

retirement value proposition; develop and promote best practice standards to improve value delivery;

and advocate before public policymakers on critical issues affecting insured retirement strategies and

the consumers that rely on their guarantees. Visit www.IRIonline.org today to experience the vast

resources of the Insured Retirement Institute for yourself.

1101 New York Avenue, NW Suite 825

Washington, DC 20005

PH 202-469-3000

www.irionline.org

www.myIRIonline.org

Preface In the United States today the responsibility for planning and saving for retirement rests with individual Americans. Retirement planning is complex but help and resources are available to all Americans. This white paper provides information on various tools and resources being used by financial services providers to assist Americans with the complexities of planning for their retirement.

Encouraging in these efforts IRI will kickoff National Retirement Planning Week® 2013 on April 8 to encourage consumers of all ages to consider their long-term financial goals and develop a plan for saving for retirement. This year’s effort also will mark the launch of a six-month national campaign designed to broaden and reinforce the week’s goal of increasing awareness of the need for comprehensive retirement planning. In addition to the six-month campaign, IRI has unveiled a retooled consumer website: RetireOnYourTerms.org. While remaining focused on providing consumers with retirement planning tools, tips and information, the site will be revamped to support the coalition’s national campaign. IRI proudly spearheads the National Retirement Planning Coalition, which will oversee both the campaign and National Retirement Planning Week® 2013. The coalition, which is comprised of prominent financial industry, education and advocacy organizations, recognizes that the need to educate Americans on retirement planning is an ongoing effort and is committed to making this a national priority.

Table of Contents

INTRODUCTION ...........................................................................................5

KEY FINDINGS ..............................................................................................6

CONCLUSION ............................................................................................. 15

ABOUT CORPORATE INSIGHT ..................................................................... 16

5

Introduction

Financial education is, and will continue to be a primary concern for financial services providers

well into the foreseeable future. With tens of thousands of boomers reaching retirement age

every day, the importance of retirement products is immeasurable, and educating consumers

about suitable financial topics is one that needs addressing.

Corporate Insight has surveyed the websites of both annuity and retirement plan providers to see

what, if any, resources are available to consumers and plan participants online. We are pleased to

find that issuers of both financial products are utilizing new technologies and similar methods for

educating consumers on general financial principles and key product information.

Among the resources we found online, videos and other multimedia were determined to be a

primary source for educating consumers. Additional methods include quizzes, games, podcasts

and presentations that focus on a wide array of financial topics. There were both similarities and

some key differences in both the quantity and content found on annuity and retirement plan

websites. The Key Findings section of this whitepaper highlights detailed examples of each, so

that you may form a better understanding of the ways in which financial services firms are

focusing on education.

6

Key Findings

Rich Media and Videos Engage Users

Video resources are an excellent way to promote financial literacy and new product information

on the public website. For the firms we cover in our Annuity Monitor coverage group, 50% post

annuity-specific videos on the public site; the same percentage offer advisor site annuity product

videos. For prospective investors, especially those interested in annuities, a captivating video

posted in a central location on a financial institution’s public site can peak the user’s interest

while providing valuable insight on the annuity products or riders. Generally, investors are often

provided prospectuses, fact sheets, flyers and other downloadable resources that explain the

product’s key features; however, a brief introductory video appeals to Web users who may be

daunted by the length of a prospectus, or who may be short on time. Annuity providers do a good

job promoting their videos with public homepage promotional images. Beyond providing videos,

firms should do their best to promote these valuable resources and offer seamless navigation or

quick access once a visitor accesses the public website. The most common method for navigating

to a video page is from a video or multimedia resource submenu tab, offered by 70% of the firms

in our Annuity Monitor coverage group.

Having visited the public websites of firms in the Annuity Monitor roster, we find that half of the

firms covered in this report post annuity-specific videos on the public site; the same percentage

offer advisor site annuity product videos. The most engaging of these videos offer a good mix of

audio and visual aids, utilizing a host speaker and background charts and graphs that offer

product comparisons and/or highlight the key product features of annuities or annuity riders. A

primary consideration for any firm devoting time to a public site video would be to keep the

videos short in order to retain the user’s attention. The implementation of chapter menus to

7

break up the video is a best practice for conveying the desired amount of product information,

but with ample consideration of time and length of video.

Retirement plan providers fall in line in terms of the video content offered to participants.

Generally, plan providers archive video content in an appropriately labeled tab; they are typically

no more than two clicks from the homepage. A range of videos are available on participant sites,

including market updates and tutorials, the majority of which are quite helpful and pertinent.

Videos are well labeled, with insignia near or around them, implying that a particular file is, in

fact, a video. Additionally, videos are kept relatively short and are imbedded in the page, rather

than generating in a new window.

8

Insurers’ Marketing Campaigns Implement #Social Media

Insurers and annuity providers have incorporated several new social media ventures into their

marketing initiatives in recent years, including a significant increase from Annuity Monitor firms in

the previous calendar year. From retirement and press release-focused Twitter feeds, to

campaign-focused Facebook pages, we have seen annuity providers uploading a diverse array of

content in order to engage consumers. Initially, insurance firms and annuity providers lagged

behind their financial services counterparts in the banking, brokerage and credit card industries.

However, new developments in the social media space have signaled an increased focus on the

part of the retirement industry to develop new social media campaigns, many of which target

educating consumers.

9

Polls and quizzes are a common way for firms to engage users on the topic of financial education

using social media. Quick facts as status updates for Facebook also provide insightful commentary

on pertinent financial topics. Finally, repurposing consumer and producer-facing videos on a

YouTube channel is a good way to centrally host multimedia videos that focus on product

education.

10

Retirement plan providers have avoided the rush to social media as it relates to participant sites.

While social media icons have been implemented within the static footer of participant sites,

leading to the general social media pages of firms, little else has been added to the private

participant sites. A few firms archive video on a YouTube page; however, that is merely an

efficient way to organize video files. Yet it is worth noting that retirement plan providers are

selected by a plan sponsor, and the preferences of individual participants are generally not taken

into consideration. Therefore, plan providers rely on other means to acquire business and

generally avoid promotional campaigns, be they print, media and/or social media.

Insurers and Retirement Plan Providers Take Aim at Gamers

The emergence of social media marketing has placed a high level of emphasis on business to

consumer interaction. One of the more commonly found social media tools that we have seen,

are games that engage users while promoting basic financial literacy. In the insurance space, we

have seen several of these games posted on large insurer’s public websites as well. Often, these

themed games reward the player for a general understanding of retirement product solutions and

common financial concepts, such as the importance of owning life insurance. Interactive games

are a great way to engage consumers in a fun manner, while creating significant product

awareness and branding opportunities.

11

Conversely, retirement plan providers appear late to the party in terms of video game

implementation. Presently, only 17% of our coverage group features access to games. None of the

games we’ve seen are specifically geared toward retirement-related education, and, instead,

focus on engaging clients on more general themes. One game takes a light-hearted approach with

a focus on retirement, offering fantastical projections, geared more at firm branding than

retirement solutions. Another game provides actionable advice regarding how participants can

save additional funds, allowing participants to toggle within a virtual world. The game focuses on

general savings strategies, but lacks a reference regarding how the savings should be put to use

(i.e. retirement).

12

ssary of Terms

Product Information Pages Remain, Despite New Rich Media Resources

Product information pages are a longstanding method for online education across financial

products. While product information pages have been found on many annuity provider’s websites

for years, some firms better highlight key product information on their pages; much of this, due to

the structure, layout and presentation of information. The following is an example of a well-

crafted product information page:

13

The above product information page is presented on an engaging template that features four

well-organized tabs, colorful imagery and a beneficial universal right-side Resources section.

Product information is logically organized across four tabs – Details, Benefits, Investment Options

and Prospectus – and includes a convenient Annuity Details table offered on the Details tab,

highlighting the key fees & expenses, surrender schedules and initial investment information. A

description of key features is presented adjacent to the Annuity Details table, while links and

overviews to the firm’s optional benefits are posted within the Benefits tab. In designing a

product information tab, it is crucial to provide performance reporting – historical returns, daily

prices and performance reports. Pages should be organized and key information displayed in an

easily-readable format.

14

Retirement Plan Providers Rely on Presentations to Communicate Info

The implementation of presentations is prevalent throughout retirement plan sites. Providers rely

on presentation tools like Brainshark to communicate what would otherwise be massive

multimedia files. Providers use presentations to educate on a seemingly endless range of topics

including rebalancing assets, tax-deferred compounding and managing debt and credit.

Presentations allow providers to effectively organize a number of multi-media files, arranged in a

particular order, which, when viewed in succession, tell a story. This can be helpful to participants,

especially in the case of the more intricate topic that requires more than a mere two minute clip.

Additionally, points may be driven home more effectively using presentations, as they enable

providers to move between dynamic info-graphics and b-roll footage, as a narrator

simultaneously explains the benefits or limitations of a particular topic.

15

Conclusion

Financial literacy is a central focus of financial services firms across market sectors. For firms in

the business of delivering retirement solutions, the utilization of technology has marked a shift in

online financial education. Now, more than ever, financial institutions are leaning on various

online and mobile channels to convey financial principles to their target audience. Firms are

appealing to a younger generation of consumers, implementing financially-focused games and

social media marketing campaigns. Rich media continues to improve in both quality and

functionality, as videos that promote financial education and firm products and services are

added to firm’s websites. The rapidly evolving landscape of technology is sure to play a key role in

firms’ education of consumers, and we are excited to see the ways in which firms tackle online

financial education in the years ahead.

16

About Corporate Insight

Corporate Insight provides competitive intelligence and user experience research to the nation's leading

financial institutions. For 20 years, Corporate Insight has tracked new developments in the financial services

industry through our syndicated Monitor research and consulting services. We are known for our detailed,

objective research, unmatched expertise, and emphasis on the actual user experience. There are no

assumptions in Corporate Insight’s work – we use live accounts at the firms we track to benchmark their

effectiveness across all major channels and give our clients unparalleled competitive intelligence.

Corporate Insight is continuously tracking and identifying best practices in online banking and investing,

insurance, annuities, mobile finance, active trading platforms, social media and other emerging areas. In the

process, we have helped our clients -- which cover the entire spectrum of the financial services industry --

to stay on top of industry trends and improve their competitive position.

Our intelligence services are utilized by over 70% of the financial services firms on the Fortune 500. Our

research and analysts are frequently cited in financial media outlets such as The Wall Street Journal,

Barron’s, Bloomberg, CNBC, Forbes and SmartMoney and news publications like the Associated Press, New

York Times, Newsweek, TIME and USA Today.

Monitor Services

Corporate Insight’s Monitor Research Services continuously track the online and offline user experience

offered by leading firms across the financial services industry. Our 11 Monitors include:

Banking & Cards

Bank Monitor

Credit Card Monitor

Small Business Monitor

Insurance

Annuity Monitor

Life Insurance Monitor

P&C Insurance Monitor

Brokerage

Broker Monitor

e-Monitor

Asset Management

Mutual Fund Monitor

Advisor Monitor

Mobile Finance

Mobile Monitor

Retirement

Retirement Plan Monitor

Consulting Services Corporate Insight offers a variety of custom consulting solutions including:

Website Audits

Competitive Benchmarking

Usability Testing

Mystery Shops

Merger Integration

Social Media & Mobile Finance