A picture says more than 100 words? The answer depends on the goal of pension communication. Should participants “like” what they see or should they be nudged to take action?
Visualizations are a promising pension communication tool for improving participants’ understanding and encouraging planning actions. We examine the impact of different forms of visualizations on the level of pension information understanding, willingness to take action, and on participants’ moods, perceptions of usefulness, and ease of use.
Visualizations (as compared to text) are highly appreciated by participants and increase understanding of pension information. But, for participants with low financial literacy and numeracy skills, visualizations reduce willingness to take action.
Therefore, pension communication should not utilize a one-size fits all approach. Communication plans must consider that participants are different: some prefer visual information while others prefer verbal information. Pension plans should offer both verbal and visual communications material, to satisfy all participants and improve knowledge and attitudes. More research is needed to identify for whom and under which situations visualizations produce positive effects.
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