What is social comparison?
Social comparison is a psychological mechanism in which people judge their own situation by comparing it with that of others. People assume that what others do (such as not actively engaging with their pension) is the norm.
How social comparison affects pension engagement
The tricky thing about social comparison is that it’s often based on assumptions. If you believe your colleagues or friends barely think about their pension, you feel little reason to take action yourself. Pensions rarely come up at birthday parties or by the coffee machine at work. Because people don’t talk about it, the assumption grows: ‘If my friends and colleagues aren’t talking about it, it’ll probably be fine.’ The result is a kind of collective passivity around pensions. Paradoxically, many people find comfort in not dealing with their pension because others don’t either, when in fact they should.
Reframing
Pension funds, possibly together with employers, need to find a way to break through this barrier. Social comparison offers plenty of openings to do so, because it also works in a positive direction. The assumptions above mainly concern things people around you don’t do. But what if you turn that around and show what your friends, colleagues or peers do?
For example, show that a growing group of colleagues is actively working on their pension. Share an internal message along the lines of: ‘Almost half of your colleagues have taken extra steps. That gives them a good amount to spend every month in retirement.’ This moves the negative picture (‘nobody does anything about their pension’) towards a positive norm (‘many colleagues have already arranged something and will have money to spend later’). Suddenly, social comparison works in your favour. That’s reframing in action.
Digital technology as a tool
Technology gives pension funds several ways to steer social comparison in a positive direction for their members. In the pension portal, for example, show members how their pension is developing compared with that of their peers. They see the difference, and that invites them to take action too. Or use push notifications, such as: ‘Eight of your colleagues checked their pension overview this month. Have you?’ This sends the message that checking your pension is normal behaviour, which gives people a positive nudge in the right direction.
Consider gamification
A popular approach is gamification: adding game elements. One idea to explore: in a pension app or portal, show how a member ‘performs’ with their pension compared with peers who have the same profile. Saving extra for your pension? Your score goes up. Or use a notification such as: ‘You’re in the top 30% of your age group when it comes to being well prepared for retirement.’ Many apps apply this principle. A well-known example is Duolingo, the app many people use to learn a new language. In the app, you see how other learners are progressing and you challenge friends. Social comparison works positively here: if everyone around you is making progress, you don’t want to fall behind. Pensions could work the same way. Whether you’re learning Chinese or building your pension, people tend to follow the behaviour of their peer group.
Gen Z and influencers
What else becomes possible when we bring in influencers? Through Instagram, TikTok and other channels, Dutch people pick up tips on all sorts of topics, from healthy eating to getting a baby to sleep through the night to cleaning the house. What if we used that same influence for pensions? In June 2025, the AFM (the Dutch Authority for the Financial Markets) published research showing that Gen Z in particular is susceptible to financial (mis)information on social media.* What if we used those same channels to share reliable information in an accessible way?
Start turning it around
Social comparison often holds Dutch people back from engaging with their pension, usually without them realising it. Pension funds need to turn today’s widespread social norm (‘I don’t need to do anything, because nobody else does’) into a positive norm that activates members and challenges them to engage with their pension now. Social norms are a strong driver of engagement, and the more people take an active interest in their pension, the better. So, pension funds: break through the barrier and use the right technology to do it.
*Gen Z: Financial Choices in a Changing World, AFM, June 2025
