Employees who use Quebec City-based Desjardins Financial Security’s (DSF) On Target Retirement tool are more likely to contribute to their group plans than those who don’t, according to a recent study by the firm.
DSF’s study revealed that in some cases participants contributed 50% more in savings for their retirement than non-users. The study focused on 60 groups with at least 10 participants and an On Target Retirement participation rate of at least 10%. After analyzing 17,500 participants, the study found that on average, participants using On Target start saving earlier.
The tool has been so helpful to participants because it is user-friendly, says Jackie Patel, director of business solutions, Desjardins, in Montreal. “We’ve really simplified it,” says Patel, “so with three easy pieces of information [users] can get a visual of their savings account — if they’re on target, if they’re not.”
The tool, which was launched three years ago, gives participants visual examples of the benefits of savings. By entering their salary, expected retirement age, and contributions, users can clearly see their savings level for retirement. Participants can also change the scenario, such as submitting a different retirement age or contribution amount, to see how their retirement nest egg would change.
In future, Desjardins hopes to engage participants through new media platforms. Currently, Desjardins has used Facebook to promote the retirement tool, says Patel, and has also introduced an augmented reality program. Augmented reality allows participants to click on an image with a smartphone, with the use of an app, to watch a video of an advisor — or another expert — talk about something related to that image. The app can be found at desjardinsAR.com.