Workers younger than 35 are now the fastest-growing segment of homebuyers. Add these mortgages to the fact that their average credit card debt is 10% above the national average, on top of average student loan balances of $26,500 — and you find a financial squeeze play that might be crushing the ability of your younger workers to enjoy the full benefit of your retirement plans. According to the Employee Benefits Research Institute (EBRI), these employees are beginning to understand the problem: Fewer than one in 10 (19%) surveyed say that they are “very confident” of having enough saved to enjoy a comfortable retirement.
What these workers need, suggests EBRI, is more knowledge about retirement planning. Unfortunately, there are few educational resources tailored to this age group. As a result, most of them rely on friends and hunches for their savings and investment ideas — not a particularly effective approach.
Younger employees need to be made more aware of the tax advantages that retirement plans provide, and the power of starting early on regular investments; while employers need to consider investment options that are more attractive to this age group.
Are your younger workers participating fully in your current plans? Do your investment methods and options make it attractive and easy for them to participate? Are educational resources available?
Our benefit and financial professionals stand ready to assist you in these areas. First, let us help you be certain you have the most effective retirement plans in place for your employees at the best cost to you. Second, we can assist you in delivering this message by providing the resources necessary to allow them to take full advantage of your offerings. Let’s talk today.