This is Part 4 of our 7th annual survey of CAP members. Read Part 1, Part 2 and Part 3.
Despite widespread use of social media and mobile applications for staying in touch with friends, checking weather and picking restaurants, the vast majority of members of employer-sponsored retirement plans don’t yet use this technology to receive information about their DC plan or group RRSP. This year’s CAP Member Survey reveals a lingering preference for printed materials, emails, websites and face-to-face meetings.
Few plan members would most like to receive information via mobile-friendly websites or apps (6%) or through social media outlets (2%). The reasons cited for lack of interest in mobile-friendly websites or apps, by the 95% who did not mention these media, include no need/don’t like (16%), no smartphone or data plan (16%), don’t use phone for financial purposes (11%), issues with security (10%), prefer paper (9%), screen too small/hard to see (6%) and don’t have a mobile phone (6%). Those surveyed also say they don’t have much access to social media (4%) or mobile apps (3%) related to employee retirement planning.
“I view social media and mobile applications as a chicken and egg dilemma for the pension industry,” says Susan Cranston, vice-president, small group benefits, with Manulife Financial. “A lot of plan sponsors haven’t gone down the path yet, so employees aren’t seeing it. And if they aren’t seeing it, they aren’t embracing it, because it doesn’t exist in the world that they know right now.
So, of course, they are more comfortable with print. But social media allows us to have two-way dialogue and is as transformational for communicators as the invention of the telegraph, the telephone or email.”
Most (64%) survey respondents say they own some type of mobile device, whether a smartphone or a tablet, and 13% of that group use their device to access their employer-sponsored retirement savings plan, while 31% use it to access personal investments or other financial accounts and 14% for retirement planning tools or information. Although few participants currently use social media to receive general information regarding their employer-sponsored retirement plan or retirement planning, 25% say they’d be likely to if it were provided by their employer. Younger people, especially those under 34, would be the most likely (34%).
“The survey shows that people are still most comfortable receiving pension information via statements and websites,” says Nicole Hunter, national director, total rewards, with Fraser Milner Casgrain LLP. “Younger people are more interested in social media––we all know that––but, unfortunately, they aren’t interested in retirement planning. But I think that social media and mobile apps are a good idea. People are using it for banking because they now see it as secure, so, eventually, hopefully, they may consider looking at their retirement options that way as well.”
The use of mobile apps is more prominent on the health benefits side, but pension industry experts see a lot of potential for retirement benefits as well, especially for simple transactions and messaging to members. Social media such as blogs and YouTube videos could be integrated into communication plans that help drive members to websites and online tools.
Cranston points out that while members today seem reluctant to use the small screen sizes to view pension information, there may be a greater response with the larger-sized tablets and iPads.
“Plan sponsors need to consider whether to skate where the puck is or to skate where the puck is going to be,” she says. “When we think about demographics and how things will evolve in the next five to 10 years, there is going to be a greater appetite for the use of mobile devices with larger screen sizes.”