Millennials Look to Employers for Retirement Guidance

About 30 percent of hospitality sector employees are Millennials, a larger percentage than ever before, according to the ADP Research Institute. However, very few of these individuals feel confident about their financial future. A 2013 Employee Benefit Research Institute survey reveals that only 15 percent of employees ages 25–34 believe they will have enough money to live comfortably during their retirement years.

Chris Augelli, vice president of product marketing and business development for ADP, recognizes the potential retirement hurdles that lie ahead for Generations X and Y, and aims to increase retirement awareness and education among these young people.

“Today’s workers expect that they are going to have to work longer and retire later in order to accumulate sufficient retirement savings,” Augelli says. “Up to 18 percent of [Baby Boomers] are stepping out of the workforce in the next five years, meaning even more of our workforce now is going to be constituted of Generation X and increasingly, Generation Y. The important thing here … is that the retirement savings equation for Generation Y in particular is a vastly different landscape then what it was for the boomer generation.”

With a tumultuous transition quickly approaching, Augelli says it is more important than ever for young generations to be financially savvy. He says it’s essential for employers to provide young personnel with retirement readiness education and ways to start saving.

“It’s really client sponsors and employers,” Augelli says. “We’re hoping they are looking at data like this, and they are realizing the turnover in their workforce, and that they are going to adopt different strategies to better engage Millennials in the retirement saving process.”

In order to engage Generations X and Y, employers must first reinstill Millennials’ confidence in the notion of savings. “[Millennials] have gone through the upheaval of 2008, and they’ve seen … what happened to their parents and their savings and their job situation. They now have trepidation when it comes to saving,” Augelli says. “Do they implicitly trust the stock market? Time and again the research is pointing to no, they do not, and with good reason.”

Millennials are full of questions, Augelli adds. They are cautious of saving, they question whether social security will be there for them in a meaningful way, and a great majority does not have access to any pension plan. Augelli says this high level of distrust provides a terrific opportunity for employers.

“While Millennials may not know how to go about saving for their own retirement, they are very much aware that they do need to save for their retirement,” he says. “Those employers who can give them access to a qualified retirement plan and give them guidance as to how to maximize their savings, they, in turn, receive greater loyalty. It gives the employers a true chance to help in attracting and attaining the best talent.”

Auguelli drives home the importance of earned media in the workplace. He says instituting an internal social media site or blog can benefit the younger demographic tremendously. This site can provide an arena for discussion between seasoned employees and those just entering the workforce. Individuals are able to share their successes and advice for investing, saving, and retirement.

“People naturally trust the recommendations of other people like them or people who they have a personal relationship with and trust their input,” Auguelli says. “Nowhere is that preference for earned media stronger than with the Millennial generation.”

He says it’s also beneficial for employers to provide an interactive website with a calculator, retirement articles, instructive videos, and information on company retirement and savings plans, so young workers can have 24/7 access to retirement education.

Back

What Clients Say About Patrice & Associates

  • Darryl Jackson has been amazing during this whole process!

    He has kept in contact with me from the very beginning! He gave the company I interviewed for a good vision of myself and they are talking highly of me! Without Darryl, I would still be jobless! He has called me on several occasions to check in and show me that he is reaching out to the next people he needs to reach out to! I could not have asked for a better supporter to help me in my job search! His business is going to excel if he continues to work this hard with his clients like he did with me and I honestly cannot thank him enough!
    Thanks,
    Josh Adams
    Darryl Jackson has been amazing during this whole process!
  • Matt gave excellent information that helped me put my best foot forward. 

    I had the pleasure of working with Matt Lopez.  We have been on this journey with a few companies. I always felt well represented and excited about the opportunities I was presented. His timely follow up is one of the many attributes that stood out the most.  It is hard to find professionalism at this level.  He gave consistent feedback, and pep talks before my interviews.  It's quite a process when dealing with second and third interviews, and Matt constantly provided great energy and enthusiasm.  He also made sure I was always prepared in having all the ammunition I needed.  Whether footnotes, information about the brand, or providing key examples to respond during the interviews.  With this pandemic, it's been difficult.  Many companies are hesitant with the direction they are moving.  Even with my vast experience, Matt is my most valuable asset.  I have several Colleagues and I would highly recommend his service without a doubt.

    Best,
    James McClain Jr.
    Matt gave excellent information that helped me put my best foot forward
  • Sally Kennedy is prompt, professional, and thorough!

    We found 2 employees using Sally Kennedy's services.  I wanted to let you know, she is amazing to work with!  We have used other services and she was able to find, by far, the best candidates for the positions.  I look forward to working with her and your company in the future!

     

    Best Regards,

    Kelley Smith

    Sally Kennedy is prompt, professional, and thorough!
  • I would recommend Darryl to any candidate!

    Darryl Jackson did a great job providing the resources and the tools I needed to land a great job. He was patient, knowledgeable, and willing to go the extra mile to ensure that I was successful.     Thank You So Much! Jalen Hannah I would recommend Darryl Jackson to any candidate!
  • Allison Sullivan was fantastic in finding me a wonderful position!

    She was very professional and upbeat! My background was a perfect match for their opening and their remote position, in my field of expertise, is exactly what I was looking for! I could not be happier!
    -Lisa Williams
    Allison Sullivan was fantastic in finding me a wonderful position!