The Retiring Type
What a Colorful Booklet Can Teach Americans About Saving for Retirement
David Ehrlich, President, The Track Group, Inc.
http://www.dol.gov/ebsa/publications/NRTOC.html
When it comes to saving for old age, most Americans don’t act like the retiring type. Only 42 percent have calculated the amount of money they need for retirement, according to the Department of Labor. And in February the personal savings rate fell to negative 0.5 percent—the lowest figure recorded by the federal government since the Great Depression.
But given that the average American spends 18 years in retirement, the public will need to mull over a few more numbers. Seventy percent is how much a typical person needs for his or her pre-retirement income to maintain a comfortable lifestyle. And of the amount needed for retirement, 40 percent is the number that Social Security may pay.
The Importance of Worksheets, Color, and Ads
Trying to help Americans find the other 60 percent, Congress decided to target personal savings. It directed the Labor Department in 1995 to begin a social marketing campaign.
Saving Matters in its early years was aimed at small businesses, women, low-income workers, and minorities. It featured three national summits, which were held in 1998, 2002, and 2005. And it featured the Osceola McCarty Super Saver award.
The award was given in 2000 to Earl Crawley, a parking lot attendant in Baltimore who, by picking up tips from customers and spending frugally, saved more than $500,000 for his retirement. “He believed in the kind of value system we are trying to pattern,” Sharon Watson, director of the office of employee benefits at the Labor Department, said.
Saving Matters later branched out to include younger people. It also featured a new social marketing technique—a colorful, interactive, and free booklet.
“Taking the Mystery Out of Retirement Planning” helps Americans to calculate their savings, expenses, and future income. Aimed at those 10 years away from retirement, the booklet is informative and handsomely designed. Its 62 pages include eight worksheets, such as “Your Money…10 Years from Today” and “Comparing Projected Income and Expenses.” The renowned graphic artist Andy Attiliis worked as the illustrator.
To publicize the booklet, the General Services Administration worked with the Washington Post, which publishes a popular newspapers supplement on Sundays. It paid off. Parade magazine on March 5 ran a blurb on the booklet.
Results Matter
Though only 70 words long, the story prompted a response many times that. An estimated 50,000 Americans asked for requests for the booklet, and another 100,000 logged on to the campaign’s website, according to Watson. In addition, U.S. News & World Report ran a three-paragraph length story about the publication on March 7. “The point is that even if you don’t have a lot of words, you can have a lot of success,” Watson said.
“Taking the Mystery Out of Retirement Planning,” can be found at http://www.dol.gov/ebsa/publications/NRTOC.html.
In addition, the Saving Matters campaign has partnered with various organizations. It worked with the American Association of Retired Persons to distribute it. The booklet also appears on the website of the Actuarial Foundation.
Given the lack of retirement planning by millions of Americans, Saving Matters ought to be expanded. Even so, the booklet is an imaginative and competent type of social marketing.
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