Retirement security is a significant priority for millennials.
The US is gradually approaching a retirement crisis, and millennials know it. People are living more than thirty years past the official retirement age of 65, which means social programs are being stretched thin and pension plans are drying up. A study conducted by EY and the Economic Innovation Group revealed that Americans aged 18-34 are appreciably nervous about their ability to retire in the future. Seventy-four percent of survey respondents expressed concern that Social Security won’t be available to them when they retire.
This uncertainty is fueled by the fact that most millennials graduated from post secondary schools during or sometime after the Great Recession. There weren’t as many jobs to go around back then and salaries were suppressed as companies scrambled to recover financially. Millennials have long been eager to start accumulating savings, which has proven to be an uphill battle as they struggle to pay off student debt nearly a decade after the economic downturn. Given these circumstances, it’s no surprise that 60% of young people polled in a Willis Towers Watson survey prefer guaranteed retirement benefits to an increase in salary.
What does this mean for your organization?
This is valuable information to know from both a recruitment and a retention standpoint, especially if your HR department has entry-level positions to fill, or a considerable portion of your workforce is under the age of 35. With the understanding that retirement is weighing heavily on their minds, you can turn your organization into a solution to their problem.
This doesn’t necessarily mean you must raise wages. The Willis Towers Watson statistic demonstrates many millennials are thinking long term, and they’re willing to sacrifice income in the short run to achieve their retirement goals. Your organization can attract and retain young talent by alleviating their retirement anxiety. For example, some companies incorporate equity into their employees’ compensation or make regular contributions to their 401(k) or Roth IRA plans.
Another way to help your employees reach their retirement goals
Last week, we explored the negative impact financial stress can have on your employees’ productivity and health. If you want your staff to be as healthy and engaged as possible, it’s critical to provide them with the resources they need to address these challenges. The LifeSpeak platform is a fantastic resource for this purpose because it contains 1500+ expert led trainings on a range of topics, from finances and fitness to mental health and relationships. Our clients’ employees can access these resources anytime using any device, and use is anonymous and confidential. To learn more about how LifeSpeak helps employees thrive, please book a demo with us today.
Also published on Medium.