The study, called ‘Saving in mind’ which Standard Life claims is the first of its kind, found that using positive communication will help consumers take positive action with regards to their finances, in turn making them feel more confident and optimistic about their future.
Presenting information about retirement in a positive tone, highlighting practical steps for finding out more information or taking action, could help people to feel more motivated and positive about the future, the study found. Conversely, adopting a negative tone was least likely to help people, particularly where guidance was not provided.
“We know that people can feel all kinds of emotions when they think about saving for the future, from anxiety and hopelessness, to optimism and security, and how they approach their savings is an important factor,” said Roy Halliday, chief executive of Standard Life Hong Kong.
“The future of savings communication should be personal and positive, not nebulous and negative. The results show that positive communication with guidance on what to do next help people feel more motivated and able to take action.”
Meanwhile, Cognitive Neuroscientist Lynda Shaw, who appraised the study, said: “The results of this study also showed that just offering savings guidance – simple steps as to what to do next– regardless of emotional tone, did in fact increase a participant’s intention to save.
“It can be argued that guidance on what to do next not only promotes curiosity and interest, but also simplifies. It helps people feel confident to make that next step.”
The study revealed of those who take control and check their finances every month, almost half (47%) feel confident about their financial future. However, of those who never check their finances, a meagre 4% feel confident.
More than half of people saving for the future feel optimistic, compared to just 20% of those who are not saving for the future.
Conversely, only 25% of savers felt pessimistic compared to 44% of non-savers.
The research, conducted by neuroscience research agency Mindlab, used both electroencephalography techniques within a lab environment and a benchmarking questionnaire to assess the relationship between savings and emotions.
During the lab phase of the experiment, 36 participants (18 male, 18 female aged between 25 and 50) were analysed to explore the effect of the emotional tone of financial information and the effect of a call to action message with this information.
Headquartered in Edinburgh, Standard Life is a leading provider of long-term savings and investments to around six million customers worldwide with 8,500 employees globally.
