We’ve come a long way from the Atari and Commodore 64 days. Today, nearly every working-age American has a super computer in their pockets, with the ability to download thousands of games in less than two minutes. In the latest issue of NAPA Net the Magazine, John Iekel highlights a few financial advisor firms that are harnessing this ubiquitous technology to make it easier and more fun than ever to enroll and invest in a retirement plan.
Gamification refers to the practice of using games to do more than just provide a visual and competitive distraction from real life; it’s a way to teach and engage people with a message that they might not be receptive to in a more traditional context. Iekel spoke to Mark Noble, the director of sales at North Carolina-based iJoin Solutions, which develops games that financial firms like Voya have used to encourage plan sponsors and participants to enroll in and contribute to workplace retirement plans.
“Gamification, by definition, is about applying game-design thinking to non-game applications to make them more fun and engaging,” Noble says. And with 80 million more active gamers (141 million) than retirement savers (61 million), according to Voya Financial, there is a large audience that would be receptive to learning more about retirement planning, if it were done in a fun way.
To reach that goal, programs like the ones iJoin develop largely resemble popular cellphone games like Tetris or Minecraft. Iekel highlights a game that Voya Financial promoted, called “Struct,” where players build a construction team with four members, each of which represents a different investment strategy. They must also use materials to build structures, and each of the materials represents an investment type, such as cash, stocks and bonds. During each of the 12 levels, the player is introduced to a new investment concept.
The numbers show that these games are very effective engagement tools to an audience that is both receptive to and ignorant of many important retirement concepts. According to Towers Watson, 78% of employers said retirement readiness is a top issue for their employees, but just 12% said their workers knew how much money they needed to be prepared for life after work. But 90% of employees who completed the iJoin gamification process enrolled in their employers’ plans, while 95% of workers said the game was effective in helping them plan for retirement.
To read Iekel's full story on gamification, click here and then on "Game On!" under the Investment Management topic heading.
To view a recap of gamification expert Gabe Zichermann’s session at last month’s NAPA 401(k) Summit, click here.
