For millennials, workers ages 22-39, participation in retirement savings plans has increased to more than 73%. However, more than 30% of those participating are saving less than what is needed to maximize their company match. A recent article from Employee Benefit News provided some recommendations for plan sponsors to engage the millennial generation and help spur them to increase their deferral rates. These recommendations include adopting automatic deferral increases, targeted communications, and employing new online tools. Focusing millennials on the big picture of how much they will have saved for retirement at their targeted retirement date rather than on their current savings rate and engaging participants competitive spirit by sharing how much others of the same generation are saving may help to bolster the millennials’ desire to save.
Are millennials taking advantage of the full company match in your plan? Does your plan offer tools to motivate participants to increase deferrals?