As Canadian Boomers age, concern is building over the approximately $1 trillion that will be left behind in the country’s largest wealth transference in history. We’re seeing anxieties rise over this wealth transference, as well as conflicting opinions on what Boomers should be doing with their money leading up to and into their retirement. The Bank of Montreal, one of Canada’s top financial institutions, recently released a wealth transference report, predicting that on average each Boomer will bequeath around $100,000. What happens to this money? According to BMO’s study, 79 percent of beneficiaries will use it to reduce debt. Undoubtedly, student debt could be part of that bucket.
Stacked next to Boomers’ wealth transference anxieties, many are wondering: Do I support my kids now and risk my financial future or wait till after I die? A June study by Scotiabank highlights this financial dilemma. “Not surprisingly, Baby Boomer remorse over retirement planning arises as obstacles begin to appear in the path toward the comfortable lifestyles that we all dream of,” says Lisa Ritchie, Scotiabank’s SVP of Customer Knowledge and Insights, in a press release.
With these Boomer concerns making headlines, banks like BMO and Scotiabank are getting ahead of the issue and pointing consumers to the financial counseling and planning they provide—something we’ll see more brands do as this subject gains traction among Boomers.
Photo Credits: Bank of Montreal; Scotiabank
In the wake of the recession, visions of retirement are no longer what they once were. Rather than dreaming of sailboats and vacation homes, Americans are simply dreaming of retiring at all. Given that fewer than a quarter of those with a retirement account say they feel financially secure and look forward to retirement, according to Mintel, it’s clear that there’s great uncertainty and insecurity around the issue of retirement. While many financial services companies have attempted to reassure insecure consumers by highlighting their strength and stability, a new campaign from Prudential goes a different route.
The “Bring Your Challenges” campaign confronts head-on the stark realities faced by most Americans when it comes to retirement and rallies consumers to bring Prudential these challenges rather than shying away from them. The print executions very frankly acknowledge the changing realities and needs of today’s retirees and illustrate how Prudential is there to help navigate this new landscape. Underscoring the reality theme, the “Day One” TV spots feature real-life Americans on their first day of retirement, and the “Day One” microsite lets consumers communicate with each other about retiring.
Prudential is attempting not only to redefine how consumers view retirement (as a start, rather than an end), but how they speak about it. The company also directly addresses the new normal of today’s economy, sending the message that it’s there to help apprehensive consumers adjust.
Photo Credit: www.prudential.com