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04.23.19

How to Market Retirement Accounts to Young Banking Customers

Eric Sivertsen

Younger generations are notoriously tricky when it comes to financial planning. While some start their retirement journeys early and contribute to their funds often, others miss the boat and don't start saving until many of the advantages of starting young have already slipped away. As a bank or credit union marketer, it's not only in the best interest of your institution to open more retirement accounts for young people, but it is also in the best interest of those young people to start saving early. Knowing this, how do you market your financial brand's retirement offerings in a way that appeals to the very people who should be starting down their roads to retirement?

Check out these tips and tricks for marketing retirement accounts to younger generations.

Lead with "A Little Goes a Long Way"

One of the most common objections from young people talking about retirement planning is that they don't make enough money to justify saving any for their retirement. This comment is nearly universal when talking to those who are delaying the start of their saving, so it's important to emphasize that they don't need to be carving out a massive chunk of their pay each month for that designation. Capitalize on the idea that any money they put in now will continue to build their wealth for the next 40 years of their lives, and all they have to do is deposit it in their retirement accounts. When framed as a small first step that can snowball into a strong financial future, the concept of saving for retirement doesn't seem so daunting. 

READ: How to Get Your Youngest Banking Customers Excited About Financial Education

Concentrate on Compounding Interest

As a marketer for a financial brand, you are well-versed in the impact that compounding interest can have on the retirement accounts of people who start saving early. For young people who are looking at starting their retirement savings, time is of the essence. The sooner they start to save, the more their money can grow over time and the better off they will be 40 years down the road. Find ways to emphasize the benefits of getting a head start on retirement savings, without focusing too intently on the consequences of failing to do so. If you can get young people excited about the concept of saving their money, then they will likely take your advice and start down the road to retirement with you by their side. 

Emphasize the Ease

In a recent national financial literacy survey, those aged 18-34 scored worse than any other age group. The fact of the matter is that young people generally don't know as much about their finances as older generations, because they haven't had to yet. It can be tough to appeal to people in this age group by touting the sophistication of your bank or credit union's retirement accounts. Those things don't mean anything to them yet, because they aren't interested in retirement yet. You first need to get your foot in the door and cultivate interest, and the best way to do that is by focusing on the ease of getting started. Younger people who are only minutely interested in saving for the future are looking to set up retirement accounts with financial institutions that make the process simple for them to understand, with limited red tape and a streamlined enrollment process. If you can check all these boxes, then they will surely pick you when they choose to get serious about their financial futures.

Stop the Scare Tactics

It's a common trope among financial brands to attempt to scare people into taking their finances seriously. They make commercials that show a family that is struggling financially, only to be rescued in some way shape or form by the brilliant financial wizards at a bank or credit union. While these scare tactics may work for some, the concept of financial planning can already be scary for people of a younger generation. Young adults today were children during the financial crisis of 2008. They have grown up in a world where making the wrong financial decision could cause you to lose your nest egg, and this fear can sometimes lead to retirement paralysis.

READ: Why Your Bank or Credit Union Could Benefit from Quality Video Content

With the power of the internet at their fingertips, today's young people have access to all the information they could ever need with respect to retirement savings. More often than not, they simply need a little push in the right direction to spark a passion for financial planning and retirement. If you can get them interested in investing in their futures, then they can quickly move from retirement rookies to ingenious investors. All it takes is a bit of help from these strategic marketing approaches.

9 Marketing Tactics Your Financial Instituion Needs to Try E-Book