MR No. 2018 - 15
14 May 2018
The interim results of a second FMA, MBIE and industry trial has shown targeted communications created using behavioural insights, are more likely to lead KiwiSaver members to make an active decision about their fund.
The trial, which was run with ANZ, focused on members who were turning 56, at a time when the ANZ lifetimes fund automatically moves a member from a balanced fund to a conservative balanced fund. These members were specifically targeted for the trial after previous FMA research showed those getting information or advice 10 years out from retirement were more confident in retirement.
The trial involved just over 2000 participants. Members received either an original letter notifying them of their new fund allocation or an updated letter created using behavioural insights.
The updated letter included prompts to check their retirement savings were on track by using online tools or by calling and speaking to an ANZ adviser. Members were also told most people who seek advice do so when they are in their 50s.
More people who received the updated letter switched funds and MBIE analysis has determined the interim results to be statistically significant. The trial has now been extended to include emails to members. This is because e-mails tended to be more effective in prompting members to take action than a letter.
Simone Robbers, FMA Acting Director of External Communications and Investor Capability said, “Providers regularly send letters and e-mails to their members and we would like to see more providers adopting these techniques. Adopting communications that use behavioural insights can influence more members to think about their financial future and then take action.”
The results will be published in full when the extended trial ends.
A third behavioural insights trial, involving AMP and IRD, is scheduled to get underway shortly. Details of the outcome of the first trial, involving KiwiWealth, can be found here.
Senior Adviser, Media Relations
021 702 036