sharpen your penciL
Try these audience-specific quizzes to boost
engagement and financial literacy By Megan Yost
A
What tools would
you find helpful to
engage participants
in the retirement
conversation?
Let us know at
definedcontribution
@ssga.com.
10
s a teacher, my sister has a fairly
straightforward retirement
plan, with a state-funded
pension and an IRA of her own. She’s
a smart, accomplished member of
the millennial generation—and she’s
totally overwhelmed by the thought
of planning for retirement. In fact, she
recently admitted that she throws her
account statements away without even
opening them. Meanwhile, my baby
boomer uncle once mentioned that
he splits contributions to his defined
contribution plan equally among all the
investment options.
I think about those interactions
when considering how to communicate
with different groups of participants.
Millennials, whom we’ve dubbed
Generation DC, will rely on DC plans
more than any previous generation,
whereas baby boomers will soon begin
drawing income from their savings. You
can support their varying needs—and
boost both engagement and financial
literacy—by using communications
tailored to their specific circumstances
and attitudes.
For example, millennials are skeptical
of experts.1 Immersed in the world of
The Participant Summer/Fall 2014
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SSgA_Participant_June14-10
social media, they prefer “likes” and
shares over straight facts or authority.2
Yet their retirement actions today are
critically important to their retirement
readiness.
For their part, baby boomers resist
terms like “senior” and “retirement
homes.”3 Instead, use terms like “active”
or “second act” that convey engagement
with life and family. They face pressing
concerns about how much time they
have left to save and how to manage
their remaining contributions.
We’ve designed a customized quiz for
each group of employees. Consider using
it at a benefits fair or in conjunction with
a 401(k) awareness week, and use the
results to inform your communications
strategy in the future. 
Pew Research, “Millennials in Adulthood:
Detached from Institutions, Networked with Friends,”
March 7, 2014.
2
SocialChorus, “Millennials as Brand Advocates,”
2013.
3
“From Diapers to ‘Depends’: Marketers Discreetly
Retool for Aging Boomers,” The Wall Street Journal,
February 5, 2011.
1
Download the full
quiz at ssga.com/dc/
theparticipant.
ssga.com/definedcontribution
6/17/14 10:11 AM
Questions for Millennials
Questions for Baby Boomers
1. TRUE OR FALSE: I don’t need to plan for
retirement until I’m much older.
2. When I’m in the early stages of my career,
the best approach to investing for retirement
is as follows:
a. 80% stocks, 20% bonds
b. 60% stocks, 40% bonds
c. 50% stocks, 50% bonds
d. 20% stocks, 80% bonds
3. TRUE OR FALSE: People my age should
invest a little in each of their plan’s options.
1. TRUE OR FALSE: I’ve run out of time to
save more.
2. When I stop working, I should consider
investing my money as follows:
a. 100% stocks
b. 60% stocks, 40% bonds
c. 50% stocks, 50% bonds
d. 20% stocks, 80% bonds
3. TRUE OR FALSE: I should think about
how inflation could hurt my purchasing
power in the decades ahead.
ANSWER KEY:
ANSWER KEY:
1.FALSE. Saving for retirement is for everyone. In fact, if
you start now, you have a distinct advantage over someone
who waits. The money you save today can grow. That
growth can produce growth of its own, which can produce
still more growth, and so on. This process can have an
almost unbelievably large impact on the amount of money
you can build over time.
2. a. Stocks lose value sometimes, but over long periods
they may offer far more growth potential than bonds. With
retirement so far off, you really can weather short-term
losses in exchange for stocks’ long-term growth potential.
3.FALSE. Holding different types of investments is a
good idea, but selecting every investment option isn’t
a great idea. Streamline your account by choosing a
well-diversified fund, like a target date fund, which
automatically keeps the investment mix smart for
your age.
1.FALSE. You’re never too old to save. In fact,
people can actually save more after they hit age 50,
thanks to the tax-deferred catch-up contributions
allowed by the IRS. In 2014, you can save an
additional $5,500 in your plan.
2. b. It’s important to keep investing in stocks
even after you stop working. Stocks may provide
the growth potential you may need to fund your
expenses over what could be a lengthy retirement.
3.TRUE. Inflation is the toxic mold of retirement
savings, eating into your purchasing power over
time. Consider investing a small portion of your
portfolio in a fund that’s designed to counter that
effect by holding real assets like commodities and
inflation-protected bonds.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy
or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You
should consult your tax and financial advisor. All material has been obtained from sources believed to be reliable. There is no representation or warranty
as to the accuracy of the information and State Street shall have no liability for decisions based on such information.
7854-SSgA_10-11_Quiz.indd 11
SSgA_Participant_June14-11
6/13/14 9:24 AM
15
%
Plan to go
back to school
in retirement
See themselves
maintaining their current
lifestyle in retirement
65
%
ssga.com/dc/theparticipant
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management, entrusted with trillions* in assets as of
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managers for U.S. defined contribution plans, SSGA has more
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