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MICRO ONE STEP AHEAD IN THE PENSIONS GAME The UK home improvement retail giant has achieved the impossible: using an app, it has made pensions fun and interesting Gamification: the new way to get the young saving for their futures Ros Altmann, a Baroness in the British House of Lords and a pensions expert, was asked recently how to ensure that people have enough cash for a comfortable retirement. Pension saving should be made more “fun,” responded the former Minister of State, Department for Work and Pensions, so people are encouraged to save more for retirement. She suggested that, given their popularity, apps and gamification are ways people could become more engaged. Retail giant Kingfisher, which includes wellknown home improvement brands, such as Screwfix and B&Q in the UK and Brico Depot in France, is already ahead of the game. In 2013, as part of a five-year communication plan, the company launched a campaign to automatically enroll 14,000 new members into 40 • Allianz
MICRO its pension savings plan and then educate its entire 36,000-strong UK workforce about pension savings. The project uses a mix of channels to get the message out, but it was the Bolt to the Finish mobile app that really sparked interest amongst young employees. “From the beginning, we wanted to have a strategy that would be fun and engaging so as to actually draw people in,” explains Dermot Courtier, head of group pensions. There were three different groups targeted: eligible job holders who were automatically enrolled under new legislation, non-eligible jobholders who fell outside the salary and age requirements, and entitled workers. “Just sending out a blanket letter to everybody wouldn’t really bring the importance of pensions to life,” says Courtier, “So we developed the Bolt family to make pensions more appealing and more personable to members. We’ve used them in everything from educational videos to websites and even refrigerator magnets.” LESSONS LEARNED Courtier said the Bolts have been kept alive because employees have identified with the family as retirement messages. Among the characters is Tommy Bolt, the eligible jobholder, Deirdre Bolt, the non-eligible jobholder, and Sanjay Bolt, the entitled worker. The characters and other imagery draw on products central to the company’s fortune, such as nuts and bolts, screws and tape measures, so as to engage with members in a fun way while educating them. The app, which can be downloaded from Apple and Google, is the first of its kind to be used in the pensions field. What inspired the company was the composition of the workforce. Some 25% of the Kingfisher workforce is under 25, which is also the age group of the biggest gamers. Courtier says the app is primarily geared towards these younger workers as they are equipped with smartphones and tablets. During the game, users play as a member of the Bolt family and overcome obstacles to » THE YOUNGER BOLTS CAN AFFORD MORE MISTAKES AND STILL BUILD SIZEABLE SAVINGS « BANAFSHEH GHAFOORI collect as many gold coins as they can before a nut (symbolizing retirement) catches them up. Upon completion, they are ranked on a leaderboard and then directed towards the pension trustee website, where more educational material about saving is hosted. COMPLEXITY MADE SIMPLE A core part of the communications, says Banafsheh Ghafoori, pensions technical and communications manager, was to encourage members to increase their contributions from the minimum auto-enrollment rates. Kingfisher hopes employees with a working life of 40 years will retire on the equivalent of two thirds of their final salary (including the state pension) using the default option. Saving more, of course, would provide a greater buffer against potential financial hardships. To illustrate the point about savings, just as in the real world, the oldest Bolt character has the shortest time to collect coins. It is important to explain to youngsters starting work about the benefits concerning the pensions and the retirement scheme, and equally how they should be saving over the long term, says Ghafoori. “Pensions are complex, so it also needs to be explained when they should take the opportunity to increase contribution levels so as to have a larger pension pot. In the game, the younger Bolts can afford more mistakes and still build sizeable savings.” Results have been impressive. Surveys have demonstrated improved awareness, understanding and active engagement amongst the workforce. Overall, 78% of players said that playing Bolt to the Finish encouraged them to think about saving for their future; 78% told someone else about the game or shared it and 67% played the game more than 10 times. There was also a rise of 35% in web page views, indicating longer-term educative engagement. Clicks and downloads are one measurement, but more important for the future of employees is action on savings. On this metric, Kingfisher is also pleased. Research revealed that 44% of those surveyed said they intended to increase their scheme contribution. Since the launch, the scheme has seen an increase of 20% of employees choosing to contribute to the maximum matching contributions of 8% by the member and 14% by the company. In terms of costs, Courtier says the app has been good value for money, explaining that the current biggest communication expense is the postal cost of sending out hard copy material. Compared to this, especially given its longevity, the app is on par with general communication spends for medium-sized pension schemes. The intelligent use of digital platforms has been noticed. Courtier says that Kingfisher has not only been approached by other companies asking to learn more about the Bolts, but has also been approached by the UK Treasury itself. “The most important lesson we can provide, is to keep it fun, simple and engaging,” he reflects. “You have got to recognize that most people do not understand long-term retirement planning and it takes time and repetition for them to develop that knowledge.” Allianz • 41
Page 1 and 2: Multiplying investment and retireme
Page 3 and 4: OPENING BELL BRIGITTE MIKSA Head of
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Page 11 and 12: Over 100,000 vendors at the market
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Page 15 and 16: Most governments in Asia are now in
Page 17 and 18: FOCUS WEIGHING UP THE GLOBAL COST
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Page 21 and 22: FOCUS » IF WE OFFER A PRODUCT THAT
Page 23 and 24: FOCUS PATIENTS WITHOUT BORDERS Medi
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Page 27 and 28: FOCUS “For those with a risk of g
Page 29 and 30: FOCUS Outdoor air pollution, which
Page 31 and 32: Who’s the fairest? The Shanghai D
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Page 35 and 36: FOCUS by experts. Typical is Eduard
Page 37 and 38: HOLDING BACK Who wants to live fore
Page 39: HOLDING BACK Geroscientists are dis
Page 43 and 44: MICRO Allianz • 43
Page 45 and 46: MICRO FOCUS DR. EDUARDO P. BANZON S
Page 47 and 48: What lies ahead for the Chinese eco
Page 49 and 50: Global opportunities MACRO CHINA SH
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Page 61 and 62: MACRO DONGHYUN PARK Principal econo
Page 63 and 64: AWARDS FOR PROJECT M PRINT AND ONLI

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