Standard Life is trying to woo “Generation Y” with a campaign of adverts and television sponsorship, the insurer has announced.
The 28-40 age group is notoriously difficult to attract to pension products. According to Standard Life’s investigations, they do not believe that saving for a pension fits into their current earnings and savings pattern. Standard Life’s Head of Marketing Jo Coombes confirmed that “through customer research we know consumers think a pension is a good way to save, but at the moment they don’t believe pensions can fit their lifestyle and be as flexible as they need.”
It’s easy to see why. This is the age when this generation are just getting onto the property ladder and starting a family. Throw into the mix the fact that many professionals in their late twenties will only just have paid off their student debts, and you can see why they might want to enjoy having a bit of spare cash.
This is also the age group that has grown up hearing about pension mis-selling scandals, and people’s funds losing large proportions of their value.
But this is the time in an investor’s life when pensions can be interesting. No, really. Given that you are still quite a long way off retirement, a savings plan that involves new and emerging riskier markets is an option.
The Standard Life campaign suggests that they are introducing a flexible pension product that savers themselves can engage with online. The campaign is expected to invite the target age group to “reality check” their finances.
Everyone knows that the sooner you start saving for a pension the better. But will Standard Life’s proposed campaign convert viewers into savers? The advertisements will be featured alongside popular shows that are repeated on the TV channel Dave, such as Top Gear and Have I Got News for You.
But if they are going to convert this age group into ardent savers, Standard Life have their work cut out.
A survey commissioned by the Financial Times last year showed that only 4% of people in their 20s had started saving for their retirement, although a study by Friends Provident revealed that half of those asked intended to start a pension before they were 30.
Yet Standard Life have put their money where their mouth is, spending a total of £2 million on an integrated campaign of television, online and traditional advertising.
