Cases of information campaigns implemented by the industry Dariusz Stańko Warsaw School of Economics 2010 FIAP International Seminar „Developing the Potential of the Individually Funded Pension Systems”, Viña del Mar, 6-7 May 2010

2 The survey time: March-April 2010 method: Internet 10 questions’ inquiry: target, scale, methods, assessment, role of government institutions, conclusions for the future participants: FIAP members plus CEE countries respondents: 11 countries (approx. 60%) (Chile, the Dominican Republic, the Netherlands Antilles, Honduras, Hungary, Mexico, Poland, Romania, Salvador,Slovakia, Uruguay)

3 Campaigns: types and issues implementation actions: start of the system, multifunds (CL, HU), new rules, updating data (DO) etc. typical actions: pension awareness and knowledge of the system (rules, obligations and rights, institutions), advantages of the funded system (FF vs. PAYG, rates of returns, inheritance issues, safety, possibility of choices, private vs. public, demographic changes), voluntary savings (NA), investor relations (DO) etc. crisis management actions: financial losses in (PL, HU, MEX) political actions (taxes HU, system’s dismantling SL, PL)

4 Campaigns: typical tools used personalised contact (letter, phone, sms, , visits to companies) seminars, conferences, press breakfasts, joint reports press, radio, TV, chats, websites (ads, interviews, leaflets, educational series, info micros) impact assessment PR agencies rather for huge campaigns

5 Campaigns: examples CL multifunds, joined efforts with the government and the financial supervisor UR - National Dialogue on Social Security from 2007/2008, Programme of Integral Advice SAL - Pension education programme with financial supervisor from 2010 MX - co-operation with financial supervisor and National Commission for the Protection of Users of Financial Services (CONDUSEF) HU attempt of tax increase on voluntary contributions, alliance with trade unions PL - “too good education” - system’s initial public info campaign - great support, but negative long- term impact of AFPs’ marketing messages

6 Campaigns: typical problems spotted low pension awareness (financial literacy) limited or no interest in the topic, especially amongst the young little or no support from governments, co-ordination problems ideologisation of the pension system (politicians’ short-term horizon, populism, various interests) part of audience out of reach (media, newspapers) if TV not used

7 Campaigns: what to address in the future? pension awareness (need of saving, knowledge of how to do that) targeting workers outside of the systems or with low salaries (Latin America) performance and safety of the system nature of the demographic problem (CEE)

8 Case study: Chile - multifunds 2002 joint 1-year campaign with the government and the superintendency; PR agency used 4 radio messages: –What would you say if you have 5 ways to change your future? –Do you think there is nothing you can do to improve your future? –How many times have you taken really important decisions in your life? –Do you believe that each person’s destiny is written? interactive CD for TV - 1 Aug 2002 info commercial on TV (local, prime time) - 18 Aug 2002, preceding inserts with multifund application form in the mainstream media - 19 Aug 2002 Internet

9 Case study: Hungary - financial crisis 2008 autumn campaign with a PR agency, from Jan 2009 till June 2009 a press campaign –to counteract the bad timing of introduction of multifunds (at the end of 2008, 75% members were in the aggressive funds) –to explain bad results of 2008 to the population (announcement preceding the information of the Financial Authority) –saving for retirement is a long-term investment –voluntary funds - do not realize losses, unless it is really necessary interviews in newspapers, TV, radio, educational series in free daily newspaper, conferences.

10 Conclusions (I) keep the message(s) as simple as possible better identification of various groups preferences and their situation is needed before implementing mass campaigns communication and education is an ongoing process, do not save on it in „good times” importance of creating good relations with opinion makers, leading media and trade unions that can influence workers and public opinion

11 Conclusions (II) target young generation (cinemas, shopping centers, internet) to counteract the problem of financial literacy and pensions politicization, the pension education should be a part of school/university curriculum explain to media and the public the nature of the demograhpic problem and the role of FF systems (CEE)