Pensioen, Keuze en de Rol van de Pensioenprofessional

Dit stuk vat de resultaten samen van een aantal recente onderzoeken naar de mogelijke rol van de professional in het ondersteunen van deelnemers bij de omgang met keuzeopties in pensioenen. Neuromarketing onderzoek (hersenscans) bevestigt dat deelnemers tweeslachtig zijn ten aanzien van keuzevrijheid in pensioenen. Op het moment dat gekozen moet worden geeft de deelnemer de voorkeur aan automatische invulling boven het zelf maken van keuze, maar achteraf waardeert men de uitkomst van de zelfgemaakte keuze juist boven die van de opgelegde invulling. De vraag ligt daarom voor hoe en in hoeverre pensioenprofessionals individuen kunnen ondersteunen bij het maken van keuze. Om een antwoord te geven op deze vraag is een tweetal experimenten onder ABP deelnemers uitgevoerd rond de (vooralsnog hypothetische) keuzeoptie om een deel van het opgebouwd pensioen bij pensionering als eenmalig bedrag (“lumpsum”) uit te laten keren. Met de twee experimenten zijn drie vormen van actieve interventie door de pensioenprofessie geëvalueerd, te weten via (1) standaardopties (“defaults”), (2) taalgebruik (“framing”), en (3) informatie over mensen in een vergelijkbare situatie (“peer-informatie”, “social proof”). De experimenten bevestigen dat individuen voorspelbaar beïnvloedbaar zijn in pensioenkeuzes, geheel in lijn met de inzichten van de gedragseconomie. Dit biedt perspectief om deze inzichten door professionals te laten gebruiken bij het ondersteunen van individuen bij het maken van keuzes

Framing and the annuitization decision:Experimental evidence from a Dutch pension fund

We report the effects of framing settings in annuity demand after conducting a survey-based experiment with members of a Dutch occupational pension plan. We gave participants the option to allocate up to 20% of their projected pension accrual to a lump sum. In particular, we investigated the joint effects of consumption and investment frames and gain and loss frames. We present strong evidence for framing effects in annuity demand. Framing effects remain significant when we control for individual characteristics. We also find robust evidence of individual characteristics influencing annuity demand, highlighting the importance of heterogeneity among participants, for example risk aversion, time preference and trust in the pension fund. Gender and long-term debt positions have significant impact how one responds to framing. We conclude that Dutch plan members generally welcome the partial lump sum option over mandatory full annuitization. The application of frames appears to predictively steer annuity demand. The precise effect framing may have, would probably also depend on the institutional environment, which predefines the perspective through which individuals filter annuities

Framing and the Annuitization Decision: Experimental Evidence from a Dutch Pension Fund

We report the effects of framing and default settings in annuity demand after conducting a survey-based experiment with over 3,000 members of a Dutch occupational pension plan. The participants were asked to allocate their real projected pension accrual between a life annuity and a partial lump sum. In particular, we investigated the joint effects of consumption and investment frames and gain and loss frames. We present strong evidence for framing and default setting effects in annuity demand. We also find robust evidence of individual characteristics of influence annuity demand, highlighting the importance of heterogeneity among participants. Framing and default effects remain significant when we control for individual characteristics. We conclude Dutch plan members generally welcome the partial lump sum option over full annuitization. Framing and default settings are generally capable of predictively steering annuity demand. The precise effect framing may have also depends on the institutional environment, which predefines the perspective through which individuals filter annuities

Using social norms to activate pension plan members: insights from practice

Activating pension plan members to think about their retirement, and to take action when needed, is a challenge that many pension funds and financial services providers from around the world are familiar with. Behavioral finance and marketing research have been recognized as valuable sources for ensuring more effective communication in activating and engaging people. One of the most famous behavioral marketing principles is the use of ‘social proof’, also referred to as ‘social norms’. Social norms have been shown in many instances and across various industries to direct a person’s behavior in the desired direction. However, contrary effects are also not rare. Therefore, before assuming that social norms can easily be applied in pension communication, it is important to first establish whether social norms are effective in the pension sector. Additionally, although social norms can be an efficient tool, with a small investment (change of a few words or pictures) leading to big increases in conversion, the application is subtle and should be done correctly. This paper first provides an overview of why social norms influence behavior in general, then discusses four studies in the pension sector in which social norms are applied, and finally develops a list of dos and don’ts when applying social norms

Using social norms to activate pension plan members: insights from practice

Activating pension plan members to think about their retirement, and to take action when needed, is a challenge that many pension funds and financial services providers from around the world are familiar with. Behavioral finance and marketing research have been recognized as valuable sources for ensuring more effective communication in activating and engaging people. One of the most famous behavioral marketing principles is the use of ‘social proof’, also referred to as ‘social norms’. Social norms have been shown in many instances and across various industries to direct a person’s behavior in the desired direction. However, contrary effects are also not rare. Therefore, before assuming that social norms can easily be applied in pension communication, it is important to first establish whether social norms are effective in the pension sector. Additionally, although social norms can be an efficient tool, with a small investment (change of a few words or pictures) leading to big increases in conversion, the application is subtle and should be done correctly. This paper first provides an overview of why social norms influence behavior in general, then discusses four studies in the pension sector in which social norms are applied, and finally develops a list of dos and don’ts when applying social norms

Communication in DC Pension Plans in The Netherlands

As the Dutch pension system will be changed in the upcoming years, there is much to learn from pension institutions that offer defined contribution (DC) products. The initial goal of this research was to find the best practices of DC pension communication. The results of fourteen interviews with pension institutions revealed characteristics of common practices rather than best practices

Communication in DC Pension Plans in The Netherlands

As the Dutch pension system will be changed in the upcoming years, there is much to learn from pension institutions that offer defined contribution (DC) products. The initial goal of this research was to find the best practices of DC pension communication. The results of fourteen interviews with pension institutions revealed characteristics of common practices rather than best practices

Communication in DC Pension Plans: An International Perspective

As the Dutch pension system will be changed from a defined benefit (DB) system toward a defined contribution (DC) system in the upcoming years, there is much to learn from national and international pension institutions that offer DC products. Previously, we have covered the results from fourteen qualitative interviews with communication professionals from DC pension institutions in the Netherlands (Report 1). This report, Report 2, describes the results from fifteen interviews with communication professionals from pension institutions in Australia, Canada, Chile, Denmark, Sweden, the United Kingdom, and the United States

Communication in DC Pension Plans: An International Perspective

As the Dutch pension system will be changed from a defined benefit (DB) system toward a defined contribution (DC) system in the upcoming years, there is much to learn from national and international pension institutions that offer DC products. Previously, we have covered the results from fourteen qualitative interviews with communication professionals from DC pension institutions in the Netherlands (Report 1). This report, Report 2, describes the results from fifteen interviews with communication professionals from pension institutions in Australia, Canada, Chile, Denmark, Sweden, the United Kingdom, and the United States