How to motivate millennials to participate in retirement savings
Why aren't millennials participating in retirement plans? In this article, Zito explains why and how you can motivate your millennial employees to participate.
Millennials comprise one-third of the U.S. labor force, making them the single-largest generation at work today, according to Pew Research Center. But they don’t appear to be functioning as full-fledged members of the workforce just yet — at least when it comes to participating in benefit plans.
The National Institute on Retirement Security found that two-thirds of millennials work for employers that offer retirement plans, but only about half of that group participates. That means just one-third of working millennials are saving for retirement through employer-sponsored plans.
The culprit for such low participation originates primarily with eligibility requirements. Millennials are more prone to disqualifying factors like minimum hours worked or time with the company — products of being relative newcomers to the workplace and spending the early parts of the careers in a deeply challenging labor market. The passage of time will hopefully help relax these eligibility limitations.
But there are other headwinds bearing down on millennials that could be holding them back from plan participation, and which present an opportunity for plan sponsors to demonstrate value to the largest working generation. For one thing, millennials have earned the most college degrees as a share of their generation, according to the Center for Retirement Research at Boston College, all while tuition costs have continued to outpace inflation. The resulting financial burden is compounded by the fact that millennials are earning less so far in their careers, despite their education gains, than older generations were earning at their age.
It’s important for sponsors to figure out how to enroll more millennials, and not just because it will generate goodwill. Boomers will continue to roll assets out of their plan accounts as they retire. The flight of their outsized share of plan assets will leave a smaller pool to share plan costs. Increased millennial engagement can offset this drawdown.
Plan design that gives due consideration to the rise of millennials should consider how to help with their financial needs and play to their strengths.
Harness millennial tech savvy
Growing up immersed in an electronic and interconnected environment reduces the learning curve that millennials might face in using planning tools. Simple offerings like a loan payment calculator or retirement savings projection interface can make a profound difference on the path to financial preparation.
The flipside to millennials’ willingness to tinker is that they tend to over-scrutinize their investment mix. TIAA found that millennials are three times as likely as boomers to change their investment allocation amid a market downturn — typically a decision that ends in regret. The compulsion to de-risk tends to strike after the worst of the damage is done, leaving investors ill-prepared for the ensuing recovery.
Solutions like target-date funds can remove the need to think about allocations altogether, so millennials can focus on more effective factors like retirement savings or loan repayment rates and stretching for their full matching contributions.
Provide an education benefit umbrella
Compound interest — the accelerant that makes saving and investing for retirement over several decades so effective — works in a similar way against borrowers that are slow to repay their loans. This is an acute problem for millennials, but it doesn’t stop with them. Almost three-fifths of 22 to 44-year-olds have student debt, and they’re joined by more than one-fifth of those over 45-years-old.
Employer-sponsored student loan repayment assistance can take a variety of forms. It can be as simple as directing participants to enroll for dedicated loan payments, and can extend all the way to helping them refinance at a better rate or consolidate multiple loans.
The education benefit umbrella can also cover tuition reimbursement programs for employees that want to continue their education but are hesitant to spend the money. These programs can also serve employee retention goals as they’re typically offered with a payback period if workers leave shortly after being reimbursed.
Any program that lowers employee financial stress will likely help improve productivity. From a practical standpoint, workers have more disposable income — and feel wealthier — once they’ve vanquished their loans.
Being an advocate in helping employees accomplish that goal has obvious benefits for organizations that are seeking to retain members of the country’s largest working generation.
SOURCE: Zito, A (9 August 2018) "How to motivate millennials to participate in retirement savings" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/motivating-millennials-to-participate-in-retirement-savings
5 things millennials need to know about life insurance
Does life insurance cross your mind often? Odds are, it's the last thing on your mind. Read this blog post for the five things millennials should know about life insurance.
Being catapulted into the adult world is a shock to the system, regardless of how prepared you think you are. And these days, it’s more complicated than ever, with internet access and mobile devices being must-have utilities and navigating tax forms when they aren’t as “EZ” as they used to be.
Maybe you’re still living with your folks while you get established. Or maybe you’re looking forward to moving out of a rental and into a house or to tie the knot. Life insurance might be the last thing on your list of things to deal with or even think about. (You’re not alone.) But here are five things you might not know about life insurance—that you probably should.
1. Life insurance is a form of protection. If you Google “life insurance” you’ll get a slew of ads telling you how cheap life insurance can be, without nearly enough information about what you need it for. That’s probably because it’s not terribly pleasant to think about: this idea that we could die and someone we care about might suffer financially as a result. Life insurance provides a financial buffer for the people you care about in the event something happens to you. Think just because you’re single, nobody would be left in the lurch? Read the next point.
2. College debt may not go away. Did someone—like your parents—co-sign your student loans through the bank? If so, the bank won’t discharge that debt upon your death the way that the federal government would with federal student loans. That means your parents, or others who signed the paperwork, would be responsible for paying the full balance—sometimes immediately. Don’t saddle them with the bill!
3. If you don’t know anything about life insurance, it’s probably better if you don’t buy it off the internet. It’s what we’re used to: You find the thing you need or love on Amazon or Ebay or Etsy, click a few buttons, and POOF. It arrives at your door. But life insurance is a financial planning product, and while it can be as simple as a 20-year term policy for less than a cup of coffee each day (for real!), going through your options with an insurance professional can ensure that you get the right amount for the right amount of time and at a price that fits into your budget. And many people don’t know that an agent will sit down and help you out at no cost.
4. Social fundraising only goes so far. This relatively recent phenomenon has everyone thinking that they’ll just turn to GoFundMe if things go awry in their lives. But does any grieving person want to spend time administering a social fundraising site? The chances of going viral are markedly slim, and social fundraising sites will take their cut, as will the IRS. And there is absolutely no guarantee about how much—if any—money will be raised.
5. The best time is now. You’ll definitely never be younger than you are today, and for most of us, the younger we are the healthier we are. Those are two of the most important factors for getting affordable life insurance coverage. So don’t delay. And if you don’t have an agent, you can also use our Agent Locator. The key is taking that first step.
SOURCE: Mosher, H. (5 July 2017) "5 things millennials need to know about life insurance" (Web Blog Post). Retrieved from https://www.lifehappens.org/blog/5-things-millennials-need-to-know-about-life-insurance/
How to help millennials tackle 2 major financial pain points
Researchers say 65 percent of millennials reported being stressed about their finances. Read to find out why millennials are the most reluctant to face their financial struggles head on.
Stress. Shame. Confusion. Embarrassment.
That’s what comes to mind for millennial employees when they think about their personal finances. It’s draining employees’ ability to stay focused on the work at hand and maximize their creativity and productivity. According to a 2017 PWC Employee Financial Wellness Survey, 65 percent of millennials reported being stressed about their finances. Additionally, approximately one-third of employees report being distracted by personal finance issues while at work, with almost half of them spending three hours or more each week handling these matters during the work day.
While employee financial stress is not new, it’s particularly strong among millennials. This group is experiencing many firsts. They are the first generation to face such a large student loan debt crisis. They are the first to need to save enough money to fund retirements that may be the longest in human history. These are no small challenges.
With millennials set to comprise 50 percent of the global workforce in less than two years, it is essential that employers help this group garner the tools necessary to experience financial calm, clarity, and confidence in the face of these challenges. But first, we need to understand why millenials are reluctant to address their financial concerns head-on.
Millennial employees are distracted by money shame
Millennials tend to be a pretty outspoken group. So why are they not speaking up more about their financial stress and the degree to which it distracts them at work?
A big part of this is overarching “money shame.” After years of schooling and higher education, it frankly can feel embarrassing to admit one is struggling with money issues. This is particularly true if the money issues are due to student loan debt – a kind of “good debt” that was supposed to make their lives better. Many millennials are wondering how they can feel so bad (financially) when they “did all the right things” (educationally). As an employer, you need to recognize this money shame is causing your millennial employees to hold back asking for help.
How employers can help their millennials overcome money fears
Employers can help their millennial employees overcome their money woes by providing financial wellness education around the two areas causing the most financial stress for millennials: student loan debt and saving for retirement.
Both of these topics can be extremely overwhelming so baby steps are key. A good introduction to both of these topics could be an educational video laying the groundwork for the big concepts that need to be addressed to help ease employees into the reality of dealing with each of these vital issues.
With regard to student loans, the education here is trickier, as some employees will have government loans, some may have private loans and some may have a combination of both. Providing basic educational lunch-and-learn type lectures to review the role of budgeting in finding the extra funds to accelerate debt paydown, and to discuss various options for consolidation, income based repayment plans and other options can help give employees a sense of relief that they have some tools and information they can use.
When it comes to retirement, many 401k and 403b providers offer onsite education for plan participants. Instructing these providers to focus heavily on these three points can go a long ways towards helping millennials understand how to make smart choices here:
1. The mathematical impact of saving early (i.e. a dollar saved and invested for your retirement in your mid 20s is four to five times more valuable than a dollar saved in your mid 40′s due to the power of compounding).
2. It’s not enough to save for retirement; wise investment choices must be made too (and often the smartest and most cost effective decision here is to use target date retirement funds composed of underlying index funds).
3. The extremely positive mathematical implications of contributing to a retirement plan at least to the point of the employer’s match (i.e. that this is literally “free” money and equates to a guaranteed rate of return; if you are matched $0.50 on the $1.00 that’s a guaranteed 50 percent return which you will not get anywhere else!)
While there are very few “sure things” in the business world, investing in reducing millennial employee financial stress and increasing work enjoyment and productivity has the potential to generate positive “human capital” dividends for years to come.
SOURCE:
Thakor M (13 July 2018) "How to help millennials tackle 2 major financial pain points" [Web Blog Post]. Retrieved from https://www.benefitspro.com/2018/07/02/how-to-help-millennials-tackle-2-major-financial-p/
'Pawternity' leave acknowledges pet owners' needs
Studies show that pet-friendly policies are trending. Are you considering implementing pet-friendly employer policies? In this article, Gurchiek lists questions employers should consider when creating pet-friendly policies.
When Anne Doussan adopted Celie, a Labrador retriever mixed breed in 2016, she had no idea her 8-week-old pup had three serious heart conditions and would require frequent trips to the veterinarian. Her boss at One-Sixteen, a real estate investment company in New Orleans, was understanding when Doussan needed to take paid time off (PTO) for Celie's appointments.
"They were incredibly understanding of my puppy's special needs," Doussan said, noting that she was allowed to report to work a few minutes later than scheduled or leave a few minutes early from her job as executive assistant. And with her supervisor's permission, she took extended lunch breaks to check on Celie. When Celie began having seizures, Doussan's boss let her bring Celie to work so Doussan could keep a careful eye on her. Her boss even let Celie take refuge under his own desk during rainstorms. When Celie's condition required her to stay home, Doussan was allowed to work remotely.
Doussan experienced the benefit—however informally—of "pawternity" leave. Pet-friendly employer policies are a trend, according to Steven Feldman, executive director at Human Animal Bond Research Institute (HABRI) in Washington, D.C. HABRI conducts research into the health benefits of having pets.
"Over the last five years we've seen this [trend] increase," Feldman said. "Millennials are getting pets as their 'starter kits.' A lot of Millennials, before they have children, often end up with feline or canine children as a way to start [parenting]."
In fact, Millennials are the primary pet-owning generation, slightly edging out Baby Boomers (35 percent and 32 percent, respectively), according to the American Pet Products Association.
"Those [pets] are just as much a part of their families as human kids will be later on. They're looking for … acknowledgement [from employers] of the important role of pets in their lives."
That acknowledgement can take different forms. Organizations that don't allow pets in the workplace may still offer pet-supportive benefits—pet health insurance, pet bereavement leave, time off to take a pet to the vet—that "signal you're looking at the employee's entire family," Feldman said. "These are all things that show you care."
That can translate into engagement and retention. Ninety percent of employees in pet-friendly workplaces feel highly connected to their company's mission, fully engaged in their work and willing to recommend their organization to others, according to a survey of 2,002 full-time workers in the U.S. HABRI and Nationwide, a health insurance provider headquartered in Columbus, Ohio, conducted the online survey in December.
Pets are considered part of the real estate team at AE Home Group in Baltimore, said Jeff Miller, who is a realtor for the company.
"Most of our real estate agents have dogs, and many of our clients are the direct result of time spent at the dog park," Miller said in an e-mail. "Whenever an agent gets a dog, it's like we're gaining a new team member. We'll lower that agent's client load for the month and encourage them to get involved with local dog-training groups and organizations. We find that this almost always pays off with even more clients and a larger network of homeowners and potential homeowners."
Questions to Consider
Marie Larsen, SHRM-CP, office manager and HR generalist at Searls Windows and Doors Inc. in Plainfield, Ill., said her employer does not offer pawternity or pet bereavement leave, but it would support an employee who wanted to use PTO for pet care or time to mourn.
"I've been that grieving employee and knew that I would be useless at work after putting our dog down last August. That's why we took her in on a Friday afternoon, I took the afternoon off, and my family and I had the weekend to be together and grieve. If a pet were to die suddenly, obviously the timing would be out of the employee's control," she said.
However, while Searls would allow an employee whose pet had died to take the day off unpaid if that employee had no PTO left to use, Larsen said she would struggle to recommend offering specific pet bereavement or other pet-related time off.
"Having specific days for pet care or pet grieving leaves a company wide open for problems. Having a general policy that allows employees with pets to utilize their standard PTO for furry family members might be a better overall approach," she said.
Creating a pet-friendly office takes some thought, Larsen noted. She suggested employers consider the following questions before venturing into pet-supportive benefits:
- "What constitutes a pet? A Dog? Cat? Lizard? Gerbil? Fish? Horse? Someone's pet is someone's pet, regardless of what type of critter it is. If one pet owner gets time off, ALL pet owners should get time off," Larsen said in a SHRM Connect discussion.
- "How much time would a company allow? One day per year? Two? One per pet? One day per pet might work if the employee lost one animal, but what do you do for someone who lost a tank full of fish? I had a friend who put one of her dogs down, then less than a month later had to put her other dog down. How much time off would she get? One day for each dog? More? Less?"
- "Bringing a new pet home, especially a very needy puppy or kitten, could take weeks for them to mature beyond the 'baby' stage. How much time would a policy allow for these situations? A couple of days? A couple of weeks?" she asked.
- "What do you do about employees with no pets? How do you provide similar benefits to prevent these employees from claiming discrimination?"
A specific pet policy makes sense, Larsen said, for businesses where pets are part of the culture, such as Rover.com, which provides dog-sitting services nationwide.
That's the case at Seattle-based Trupanion, which provides medical insurance for pets. The company offers its 500 employees three days of pet bereavement leave. It has had 250 dogs "and a few brave cats" in the workplace, according to Michael Nank, the company's public relations manager.
"Our pets are an important part of our culture, and they constantly remind us why we come to work—to help the pets we all love to receive the best veterinary care," Nank said in an e-mail. "When one of our employees loses a pet, we are acutely aware of the family-like bond that exists between them and their pet, and the need they may have to take the time to grieve and process the loss."
SOURCE:
Gurchiek, K (10 July 2018) "'Pawternity' Leave Acknowledges Pet Owners' Needs" [Web Blog Post]. Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/pawternity-leave-acknowledges-pet-owners-needs.aspx
3 Ways to Reshape How You Communicate About Benefits with Millennials
Communicating the benefit needs amongst generations and can cause confusion when keeping up with the satisfaction of your younger employees. Ensure millennial happiness with these tips on their unique benefit standards.
As two millennials ourselves, we know what most people think about Generation Y. Many use terms like “techy,” “entitled” and maybe even “lazy” to describe our generation.
But, the reality is today’s millennials are more global, civic-minded and, though you may not expect it,financially conscious than any other generation. And, according to the Pew Research Center, we now represent 35 percent of today’s workforce.
Millennials are also now getting married and starting families. And yes, purchasing more benefits products through their employers as a result.
As we millennials grow up, it’s important to reconsider how you communicate with us about benefits—because it’s a lot different than how you’ve communicated with other employees in the past.
For example, consider your Gen X and Baby Boomer employees for a moment. When you communicate about benefits with them, it’s relatively straightforward. You probably use tools like email, in-person meetings, flyers and newsletters. And messaging probably revolves around safety, reducing risk and explaining the finer points of the benefits themselves.
But when you’re talking about benefits to millennials, things should be a little different. We’re more digitally fluent than other generations. We’re demanding more flexibility—in our work and family lives. And, we’re increasingly cost-conscious.
It’s a different approach. And, we want to talk about three key ways you can start to reshape how talk with millennials more effectively when it comes to benefits:
For millennials, it’s all about the emotion and sense of responsibility. One of the most interesting findings we’ve picked up over the last few years when communicating with millennials has been to focus messaging on making an emotional connection. Highlight the peace of mind benefits will provide. Discuss the fact that purchasing benefits like disability, life and critical illness insurance through their employer is the right, and responsible, thing to do.
In a recent survey conducted on behalf of Trustmark Voluntary Benefit Solutions “providing peace of mind” was the number one reason millennials gave for why they enrolled in key benefit areas. While this was true across all generations in the study, millennials chose “it’s the responsible thing to do” more than others as a secondary reason for purchase. That emotional connection tied in with responsibility is absolutely key when talking to this demographic.
Millennial stereotypes don’t apply. If you’re communicating with millennials, most people would think digital technologies like text messages and social media would be the way to go. However, that’s not the case. According to Trustmark research, millennials listed “meeting in person” and “calling a representative” as their top preferred channels for communicating during enrollment periods—followed by digital communications channels. Surprising, right? It probably shouldn’t be, given millennials’ desire for more personalization in multiple facets of their lives.
Value, convenience and high-level messaging are key. Through our research, we found that millennials react favorably to messaging around value and convenience—so be sure to hit on those points throughout the enrollment process. For instance, explain why coverage is needed or why an employer-paid policy is not enough. Talk about benefit policy costs in comparison to other low-cost items, like a daily cup of coffee. Discuss the value of employer contributions—and what those contributions can mean to millennials’ bottom lines. Also, make sure to share the convenience and ease of payroll deductions; how their employer is simplifying things by making the deduction and payment for them.
Finally, remember, when it comes to benefits, millennials aren’t as concerned about the details of their insurance plans. They want to understand the basics—what’s covered, how much it costs, and why they might consider a specific offering over another. Resist the urge to focus on the fine print, and keep messaging at the higher levels.
Magic number 3
One more thing that may help reshape your approach to communicating with millennials: The number three. That’s the minimum number of times you should be communicating with millennials during your enrollment process. Our research found that employees remembered and appreciated benefits more when they saw three or more distinct communications. In fact, 72 percent of employees who received three types of benefits communication rate themselves “likely” or “very likely” to recommend their employer based specifically on their benefits program.
Does that help give you some ideas for how to reshape your approach to communicating with millennials about benefits? Overall, just make sure to remember that we millennials are looking for personal and professional offerings from our employers that are unique to us—including benefits. And be sure you’re ready to talk with millennials using the right messaging, the right tools and the right cadence to ensure success.
SOURCE:
Dahlinger, M and Moser, C (27 June 2018) " 3 ways to reshape how you communicate about benefits with millennials" [Web Blog Post]. Retrieved from https://www.benefitspro.com/2018/06/27/3-ways-to-reshape-how-you-communicate-about-benefi/
Millennials, tech industry driving adoption of paid leave programs
More employers are voluntarily offering paid leave benefits to win over millennial workers in an increasingly competitive marketplace, but costs related to workforce management and thin profit margins in many industries have hampered widespread voluntary adoption, according to The Paid Leave Project’s report, “Emerging business trends in paid family medical leave.”
The project, an initiative managed by “action tank” Panorama, interviewed representatives from 470 large U.S. employers across 23 industries to find top reasons for voluntarily offering paid leave programs – as well as main barriers to offering such benefits.
The leading factor that prompts most companies to voluntarily offer the benefit is employee demand, particularly from millennial workers who hear about other companies’ paid leave policies from the media as well as from their friends and family members who receive such benefits. More than 40 percent of companies that already have paid leave cited this as a driver.
Some employers say they want to be considered a “best employer” within their industry. Says a representative from a manufacturing company: “A company can choose to be in the middle of the pack, but we don’t see that as a competitive advantage. We want to be leaders.”
Employers in specialized industries or geographies with a tight labor market say a compelling benefits package, including paid leave, is key to attracting and retaining top talent. “The war for talent is pretty bad,” says a representative from an aerospace company. “We are taking a deeper dive at looking to expand (our) total rewards.”
The tech industry is leading the way, with employers like Netflix and Spotify, respectively offering 52 weeks and 26 weeks of parental leave. Part of this is because other industries are increasingly needing tech talent as the “digital revolution” is now transforming their own sector, including transportation, retail, telecommunications, healthcare, and manufacturing. Some companies in these industries are directly reaching out to technology companies to benchmark against their benefits.
The main challenge to offering paid leave is cost, including paying for a resource to temporarily fill a role while also funding the employee’s leave,
“Employers from retail, manufacturing, transportation and others with a high concentration of hourly workers indicated that coverage is particularly challenging for their sectors,” the authors write. “Given the nature of production and frontline roles, it can be logistically complex for such workers to cover their coworkers’ duties in addition to their own.”
Those industries with low profit margins, such as retail and transportation, find it particularly difficult consider offering paid leave because it just isn’t financially viable, they contend.
Says a representative from a nationwide retailer: “How can I offer paid leave when I can’t even offer comprehensive healthcare, including dental insurance?”
However, a handful of employers in these industries who have embraced paid leave are seeing positive results, including outdoor clothing and gear retailer Patagonia, according to the report.Over the last five years, 100 percent of the women who have had children while working at Patagonia have returned to work. This has led to a balanced workforce and about 50 percent representation of women in all management levels.
For those who offer paid leave, many are also implementing “wrap-around” supports to complement the benefits, such as flexible work schedules to ramp on and off when employees return from leave, providing private locations for mothers to breastfeed, and employee resource groups for new parents. More and more employers are also expanding paid leave for those are providing caregiver services to elderly or disabled family members.
Organizations such as DMEC, the Integrated Benefits Institute (IBI), and providers such as LeaveLogic offer valuable research, tools, and resources for employers as they roll out or expand benefits, according to the report. Moreover, The Paid Leave Project, in collaboration with the Boston Consulting Group, created a comprehensive paid leave Playbook for employers, which includes cost calculator and industry benchmarking data; paid leave policy template; tips for employers in states with new paid leave laws were recently added; and paid Leave best practices and case studies of companies that offer the benefit.
The latest report builds on earlier work by The Paid Leave Project and the Boston Consulting Group, which in 2017 released “Why Paid Family Leave Is Good Business,” a summary report from initial research into the paid leave practices of more than 250 U.S. companies.
In 2018, The Paid Leave Project will focus its research on industry-specific dynamics, the challenges for companies in states with current or pending legislation, and how employers are tracking paid leave data, results, and return on investment.
Read the article.
Kuehner-Hebert K. (2 March 2018). "Millennials, tech industry driving adoption of paid leave programs" [Web Blog Post]. Retrieved from address https://www.benefitspro.com/2018/03/02/millennials-tech-industry-driving-adoption-of-paid/
Eligibility, lack of plans keep millennials from retirement saving
As millennials reach the age to save for retirement, there is a clear lack-of-knowledge in the arena of what plans they need and how to save for them with the continuing costs of their lifestyles. In this article, we take a look at why this is.
Millennials are way behind on retirement savings, but it has nothing to do with self-indulgence or feasts on avocado toast.
Instead, what they actually need are retirement plans, and earlier eligibility to save in them.
A new report from the National Institute of Retirement Security highlights millennials’ precarious retirement futures with the news that only a third are saving for retirement. It’s not because they don’t want to, or are being extravagant, because when the numbers are crunched they actually save at rates equal to or higher than those of their elders—even if not as many of them can do so.
Millennials are getting a raw deal. Not only are traditional defined benefit plans disappearing, with the likelihood that a millennial might actually be able to participate in one, they’re worried that Social Security—which runs way behind the cost of living anyway—will be of even less help to them in the future as an income replacement than it already is for current retirees. Add to that the fact that more than half of millennials are expected to live to age 89 or even older, and they have the added worry of outliving whatever savings they might have managed to stash.
In fact, millennials need to save way more than their elders to stand a chance of having a retirement that honors the meaning of the word. Says the report, “[S]ome experts estimate that millennials will need to make pretax retirement plan contributions of between 15 percent to 22 percent of their pretax salary, which at 22 percent, is more than double the recommendation of previous generations.”
They’re viewed as irresponsible, but 21 percent are already worried about their retirement security, says the report, and while 51 percent of GenXers and boomers contribute to their own retirement plans, just 34.3 percent of millennials participate in an employer’s plan, although 66 percent work for bosses that offer such plans.
In fact, 66.2 percent of millennials have no retirement savings at all. Zip, zilch, zero. And millennial Latinos? A whopping 83 percent have a goose egg, not a nest egg. Latinos have it much worse, incidentally, than any other millennials group, with just 19.1 percent of millennial Latinos and 22.5 percent of Latinas participating in an employer-sponsored plan, compared with 41.4 percent of Asian men and 40.3 percent of millennial white women—who have the highest rates of participation in a retirement plan.
Despite working for an employer who provides workers with a retirement plan, millennials don’t always have a way to save, since said employer may have set barriers in place to prevent participation until an employee has been with the company for at least a year. And millennials are, of course, known as the job-hopping generation—so if they don’t stay in one place they never qualify. Close to half of millennials—40.2 percent—say they’re shut out of retirement plans because of employers’ eligibility requirements, including working a minimum number of hours or having a minimum tenure on the job.
But don’t accuse them of having no desire to participate: when they’re eligible, more than 90 percent do so.
Read the article.
Source:
Satter M. (2 March 2018). "Eligibility, lack of plans keep millennials from retirement saving" [Web Blog Post]. Retrieved from address https://www.benefitspro.com/2018/03/02/eligibility-lack-of-plans-keep-millennials-from-re/