Employers tend to direct retirement education toward those who will soon exit the workforce — Baby Boomers and Gen Xers. That makes sense considering the nearness of retirement for those groups. But it’s the Millennials who now make up the largest constituency in the American workforce, at one out of every three workers. And it seems they need a little help when it comes to saving for their eventual retirement.
The Young and the Restless
Almost half of Millennials are worried about retiring on time, and two-thirds are concerned they will outlive their retirement savings.1
Addressing the unique challenges Millennials face in saving for retirement is important for American businesses struggling to attract new workers. Among the challenges is student loan debt — but there are others. Housing costs are identified by 37% of Millennials as the primary reason they can’t save enough for retirement, with 21% citing student debt.2 Whatever the reasons, there are things employers can do to help. Here are a few to consider:
- Provide targeted financial wellness education. Break down your employee population into segments, such as by age, career stage, family status, etc. That way you can address specifics in your financial education, which may offer employees the information they need at just the right time.
- Keep social responsibility in mind. This is a subject often near to the hearts of younger workers. Consider including ESG (environmental, social and governance) funds among your retirement plan’s investment options.
- Access to personalized investment advice. In spite of their reputation for doing everything electronically, Millennials appreciate personalized financial advice. Check with your plan advisor to find out how to incorporate it without breaking the rule against providing it yourself.
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1Thriving in the New Work-Life World, MetLife’s 17th Annual U.S. Employee Benefits Trends Study, 2019, https://www.metlife.com/content/dam/metlifecom/us/ebts/pdf/MetLife-Employee-Benefit-Trends-Study-2019.pdf
22019 Retirement Pulse Survey “Catching Up On Retirement Savings” September, 2019
Heartland Retirement Plan Services are offered through Dubuque Bank and Trust Company. The information provided herein is general in nature and is not intended to be nor should be construed as specific investment, legal or tax advice. The factual information has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. Heartland Retirement Plan Services makes no warranties with regard to the information or results obtained by its use and disclaims any liability arising out of your use of, or reliance on, it. Products offered through Heartland Retirement Plan Services are not FDIC insured, are not bank guaranteed and may lose value, unless otherwise noted.
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© 2020 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance, nor as the sole authority on any regulation, law, or ruling as it applies to a specific plan or situation. Plan sponsors should always consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.