For years now we've seen stories about the fact that Americans aren't saving enough for retirement. In fact it seems like some aren't saving at all. It's a conundrum for financial services firms.
To get people to save more, for the past four years, Prudential has been trying to educate people about behavioral barriers that are getting in their way, such as procrastination and optimism bias. No wonder they weren't effective.
Now they have announced that they are moving on to "urging them to act now by taking steps toward retirement readiness. " Not much of a strategy if you ask me.
But, they may actually be onto something. What they have done is to create a "Race for Retirement." They have introduced a specific goal -- saving an additional 1%, and have created this website, which encourages people to take a pledge to achieve it. And, it is keeping track of how many people take the pledge and how much money would be saved if they actually follow through.
Oh and did I mention that they are capturing names and email addresses when you sign up?
Interesting approach. Take a look at the website and tell me what you think. Would this approach encourage you to save more?
Gazdik, T. (2015, December 4) Prudential Effort Encourages More Retirement Savings. mediapost.com. Retrieved December 4, 2015, from