Me, my life and my pension · 4/12/2018 · newsletter is send on a monthly base. The ... in education) Integrate pension benefits overview in bank account statement Sharing success

Me, my life andmy pension

April 18th, 2018

Pieter Kiveron

Director KPMG

2© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative

(‘KPMG International’), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks of KPMG International.

Portal / App

Insight

E-mail alertsPension 1-2-3

Overview

Pension communications

Action perspective




Some figures

Source: Pensioenmonitor, Wijzer in Geldzaken

makes time on a

regularly base to study

own pension situation

is of the opinion that they

should take a closer look at

their expected financial situation

from retirement date onwards

believes to be well

informed about the level

of pension benefits




Financial budgeting is a challenge




Behavioral characteristics influence pension awareness

Source: Brüggen en Knoef




How can we help participants?

Focus more on right

side of the brainPersonalization

FramingFinancial incentives

From informing to motivating and activating




Focus communication more on right side of the brain

Right side – emotion & creativityLeft side – ratio

Numbers Symbols

Objective A lot

of text

Slow

Conscious

ComplexRational

Abstract

Intuitive

PicturesSubjective

Little text

Quick

Unconscious

Easy Emotional

Creative






Numbers Symbols

Objective A lot

of text

Slow

Conscious

ComplexRational

Abstract

Intuitive

PicturesSubjective

Little text

Quick

Unconscious

Easy Emotional

Creative

A lot of text

Pension is a difficult subject which you rather

not like to think of. Sign up for the newsletter via

the website of your pension fund. The

newsletter is send on a monthly base. The

newsletter includes the latest pension news.

Little text

Pension is a difficult subject. Sign up for the

newsletter to receive the latest pension news.





Rational

Pension is income from retirement onwards.

Emotional

Pension is meant to enjoy your life from retirement

onwards.


Numbers Symbols

Objective A lot

of text

Slow

Conscious

ComplexRational

Abstract

Intuitive

PicturesSubjective

Little text

Quick

Unconscious

Easy Emotional

Creative





Complex

In your pension file you can look at your accrued

benefits

Easy

In your pension file you can see what level of income

to expect from your retirement date onwards


Numbers Symbols

Objective A lot

of text

Slow

Conscious

ComplexRational

Abstract

Intuitive

PicturesSubjective

Little text

Quick

Unconscious

Easy Emotional

Creative




The use of framing increases effectiveness of communication

Source: Eberhardt et al.

Responding to a sense of loss encourages action

INSURANCE

(LOSS)

INVESTMENT

(GAIN)

Make sure today to obtain

more insight into your

pension

Invest time today to obtain more

insight into your pension

If certainty about your future pension is

important to you…

If an investment into your future pension

is important to you…




1. Incentives - “what’s in it for me?”

2. Mappings – framing

• making it easy for your customer to understand what they are going to experience

• Megapixels, Gigabytes, Real income

3. Defaults

• Automatic software updates

• Auto-enrolment, auto-escalation, life cycles, fixed annuities, …

4. Give Feedback – show the result

5. Expect Error – make wrong choices (human error) impossible

• Check investment knowledge before Self investing is possible

• Mandatory annual check for pension providers against prudent policy

6. Structure Complex Ideas

• NEST Lower Growth fund (instead of ‘Low Risk’)

• NEST Higher Risk fund (instead of ‘High Return’)

Choice architecture

Richard Thaler

Cass Sunstein




Explanimations• Customer journey

• Life events




Explanimations

https://www.youtube.com/watch?v=vDGixHfSygM




Interactive pension television• Data analytics




Interactive pension television




Other ideas to create awareness with focus on the right side of the brain?

Netflix serie

National

pension test

(BNN) SIRE campaign

Focus on next

generation (integrate

in education)

Integrate pension

benefits overview in

bank account

statement

Sharing

success stories Visualize

Obligated

pension training




Dutch pension system

PILLAR I

GOVERNMENT

(AOW)

Minimum living

standards

PILLAR II

EMPLOYER

Current

living

standard

PILLAR III

PRIVATE

Individual

additions

(escrow annuity

savings)

Pension Provisions

PILLAR IV

PRIVATE

Wealth

creation

PILLAR V

PRIVATE

Human

capital

(continue

working)

ANW

WIA

Survivors’

pensions

Disability

pensions

Life

insurance

Disability

insurance




Dutch pension system

PILLAR I

GOVERNMENT

(AOW)

Minimum living

standards

PILLAR II

EMPLOYER

Current

living

standard

PILLAR III

PRIVATE

Individual

additions

(escrow annuity

savings)

Pension Provisions

PILLAR IV

PRIVATE

Wealth

creation

PILLAR V

PRIVATE

Human

capital

(continue

working)

ANW

WIA

Survivors’

pensions

Disability

pensions

Life

insurance

Disability

insurance




Dutch capital markets 2018

Sou

rce:

Gro

up

Life

, CB

S

State pen

sion

Mandatory industry-widepension funds

Voluntary industry-widepension funds

Companypension funds

Occupational pension funds

General pension funds

PPI

Insurers

Net an

nu

ity

Insurers

Banks

Housing value

-/-

Mortgage debt

=

Surplus value

Savings

Shares & Bonds

Business assets+

Material interests

Other assets

1st Pillar 2nd Pillar 3rd Pillar 4th Pillar

Net

pen

sio

n

€1,500 billion €150 billion €1,100 billion




Dutch capital markets 2038?

State pen

sion

IORPs

Banks

IORPs

Banks

Housing value

-/-

Mortgage debt

=

Surplus value

Targetedsavings

Wealth creation

Business assets+

Material interests

Other assets

1st Pillar 2nd Pillar 3rd Pillar 4th Pillar

Insurers

Asset managers

National&

Pan-European

Assetmanagers

Care

Net an

nu

ity

Net

pen

sio

n

Insurers




Pan-European Personal Pension product

PEPP

Transparent

Simple

Cost-effective

Strong consumer protection

Cross-border




The day has ended.

A wonderful day.

We have worked, laughed, lived, cared, and now….. we are going to sleep soundly.

We are well organized in the Netherlands, right?

Well, much has changed without noticing.

And we need more money of our own, later.

Many of us have to work till the age of 71.

Every year you retire earlier will cost you 7% of your pension.

And maybe, you also need to repay your home mortgage.

Luckily, you can do something yourself.

Make sure you know what you need in the future.

Go to your bank. Any bank.

We do not care where you want to do something about it.

As long as you do act.

Because, you will need it in due time.

Bring on the future!

Bring on the future




It’s your turn

Thank you! Pieter Kiveron

Director

Pension Advisory FRM

Office: +31 206 567632

Email: [email protected]

KPMG on social media KPMG app


© 2018 KPMG Advisory N.V., registered with the trade register in the Netherlands under number 33263682, is a member firm of the KPMG network

of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved.


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Me, my life and my pension · 4/12/2018 · newsletter is send on a monthly base. The ... in education) Integrate pension benefits overview in bank account statement Sharing success