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Increase retirement savings by connecting users to their future self

Fintech Fintech onboard

Overview

Use augmented reality to show users an aged version of themselves, helping to emotionally connect their current self with their future self. By closing the psychological gap between these two selves, users are motivated to save more for retirement.
a screenshot of the onboard flow explaining how to Increase retirement savings by connecting users to their future self

Business Outcome

Savings Rates

Increase the amount users elect to sve for retirement.

Behavioral Outcome

Present Bias

Showing users their future self to reduces present bias, the tendency to prioritize immediate rewards over long-term benefits.

The Behavioral Science

Future Self

This tactic leverages the concept of the "future self" from behavioral science.

Research shows that people tend to think of their current self in first-person terms, but their future self in third-person terms, as if it were a stranger. This psychological distance makes it harder to empathize with and plan for one's future needs.

However, interventions that make the future self feel closer and more relatable can bridge this gap.

A study by ARP found that exposing individuals to augmented reality versions of their future selves nearly doubled retirement savings compared to a control group.

How It Works

The retirement app uses age progression technology to generate a realistic image of what the user may look like in their 60s or 70s. This aged portrait is prominently displayed while the user makes choices about their retirement savings goals and monthly contributions.

Seeing their older self helps the user emotionally connect to the person they will become decades from now. Rather than an abstract concept, retirement becomes personal - something they need to plan for to ensure their future self's wellbeing. This motivates allocating more money to retirement accounts.

The app also asks the user to reflect on goals that are important to their future self, further strengthening the connection and making those later years feel more vivid and three-dimensional vs a hazy unknown.

By helping users feel more connected to their future selves, this tactic can lead to higher retirement savings contributions. Users who see their aged self are likely to allocate more money towards securing a comfortable retirement.

How It Might Backfire

Feeling of Disconnect

Some users may find seeing their aged self disconcerting or even upsetting, especially if the image doesn't match their self-perception. Others may feel the aged portrait is too unrealistic. In both cases, the negative reaction could undermine the tactic's effectiveness.

Repeated Use

There's also a risk of the tactic losing potency with repeated use, as the novelty of seeing one's future self wears off. Varying the images shown and prompts around them may help sustain engagement.

How To Test

A/B Test

Run an A/B test with a control version of the retirement app that does not show aged self portraits. Compare metrics like retirement savings contribution amounts, frequency of deposits, and engagement with retirement planning features between the two groups.

Surveys & Interviews

Surveys and user interviews can also yield valuable qualitative insights on if and how the aged self images affected users' attitudes and behaviors around retirement, as well as ways to optimize the experience.

Frequently Asked Questions

To enhance a product-led growth (PLG) model using Fintech's onboarding tactic, implement augmented reality features that show users an aged version of themselves during the onboarding process.

This approach can significantly boost user engagement and motivation to use your financial product. By connecting users to their future selves, you can increase the likelihood of them setting higher savings goals and using your product more frequently. This emotional connection can lead to higher user activation rates and increased long-term retention, both crucial elements in a successful PLG model.

To improve conversion rates using Fintech's onboarding tactic, incorporate augmented reality features that show users their aged selves during the sign-up or initial goal-setting process.

This approach can significantly increase the likelihood of users completing the onboarding process and setting higher initial savings goals. By emotionally connecting users to their future selves, you can reduce present bias and motivate them to take immediate action. This can lead to higher conversion rates as users are more likely to commit to using your financial product when they can visualize the long-term benefits.

To optimize your website using Fintech's onboarding tactic, integrate augmented reality features that show users their aged selves at key decision points throughout the user journey.

For example, you could implement this feature on pages where users set savings goals, adjust contribution amounts, or explore different investment options. By consistently reminding users of their future selves, you can encourage more engagement with retirement planning features and increase the time spent on your website. This can lead to improved user experience and higher conversion rates for key actions like setting up automatic contributions or increasing savings percentages.

To A/B test Fintech's onboarding tactic, create two versions of your onboarding process: one with the augmented reality feature showing users their aged selves (version A) and one without this feature (version B).

Randomly assign new users to each version and measure key metrics such as initial savings goal amounts, frequency of contributions, and overall engagement with retirement planning features. Additionally, track long-term metrics like user retention and average account balances. Complement this quantitative data with qualitative feedback through user surveys to understand the emotional impact and perceived value of seeing their future selves.

Fintech's onboarding tactic improves user experience by creating a strong emotional connection between users and their future selves, making retirement planning more personal and engaging.

By showing users an aged version of themselves, the tactic helps bridge the psychological gap between present and future selves. This can make the abstract concept of retirement more tangible and relatable, reducing the cognitive load associated with long-term financial planning. As a result, users may find the process of setting savings goals and making financial decisions less overwhelming and more meaningful, leading to a more positive and motivating user experience.

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