I know I am probably pretty lucky to have started my 401(k) at the young age of 22. I’m honestly and happily surprised with the amount currently in the account. I wasn’t able to put a lot away, but I was sure to take advantage of the company match we offer. If I was left to my own procrastination, setting up a 401(k) account would probably still be on my to-do list. But luckily I had my parents and a few co-workers on my back. I also had a great HR team who provided education and access (during work hours) to meet with the financial consultant who handled our accounts. It took 30 minutes of my work time to understand what a 401(k) is and why I need one, plus which options would be best for my individual situation.
At the time, I didn’t think it was such a big deal, but now looking back I realize what that 30 minutes means to my future. I will always appreciate that and remember how much my company really did for me.
If you want to attract and keep Gen Y talent remember these three things about their retirement:
1. They’ve probably seen their parents’ retirement savings crash and burn with retirement having to be pushed to later in life. Gen Y will not want this to happen to them. They’re an eager group who will appreciate any education and retirement options your company can offer them.
2. What’s best for your other workers might not be best for Gen Y. According to a recent blog post on SHRM by Stephen Miller, CEBS, Generation Y Favors Target-Date Funds and Roth 401(k)s. Look into whether or not your current plan options provide target-date funds and Roth 401(k)s. These might be more appropriate and help these groups feel more comfortable with 401(k)s.
3. Educate them! Whether you provide the retirement educationor you have someone come in to offer financial education, it’s important to have someone pushing them and taking the time to educate them like I had. The easiest way might be to explain the rule of 72. Allowing time for the funds to grow is important and the rule of 72 helps explain that even a small amount can turn into a nice sum when it’s left to double repeatedly.
Anything I missed that you think should be added to this list?
Originally posted at: http://uecubenefit.uecu.org/