A Google search of “millennials” returns nearly 35 million results in less than a second’s time. And in greater and greater numbers, millennials are entering a workforce where some of their coworkers remember having to head to the library and use the Dewey Decimal System to zero in on the answer to questions now found with the click of a mouse. How companies react to this changing workforce is one of the many challenges firms face in the years ahead. And make no mistake: the millennial challenge is one all companies will face in some form. According to a 2015 Pew Research Center study, millennials now comprise a greater chunk of the workforce than any other.
While much has been written and researched on the differences between millennials and their working peers, there is one obvious area in which millennials have common ground with their older and younger co-workers. For all workers, the need to save for retirement is clear and essential.
And time is on the side of millennials.
A retirement calculator can help paint the picture of what is needed to have a reasonable post-work income. And a compound interest calculator displays how a long timeframe -- and consistent saving -- can lead to a nestegg growing bigger and bigger.
The good news? The importance of saving isn't going lost on younger investors. Per CNBC, Merrill Lynch found that 401(k) participation by investors aged 18-34 surged more than 60 percent in 2014.
With private-sector pensions harder and harder to find, 401(k) plans are vital to retirement saving. And the portability of 401(k) plans could be key as well for millennials. To wit: the 2016 Deloitte Millennial Survey found that about 2-in-3 millennials surveyed expected to leave their current job by 2020. (Overall, Deloitte surveyed 7,700 workers born in 1983 or later.)
If you would like more information on how to deal with a changing workforce or have any other employee benefits questions regarding millennials, contact a Plexus client service team representative at 847.307.6100 (Deer Park), 312-606-4800 (Chicago – Loop), 972-770-5010(Dallas) or 405-840-3033 (Oklahoma City).
Similarly, if you would like to learn more about employee education and plan design for millennials and employees of all generations, Plexus Financial Services can help. Contact a client representative at 847-307-6222, and let’s have a conversation. Increasing retirement saving is our passion.
Disclaimer: Plexus Financial Services does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable; we cannot assure the accuracy or completeness of these materials.
Plexus Financial Services is located at 21805 Field Parkway, Suite 300, Deer Park, Illinois 60010. The company phone number is 847-307-6222.
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