There’s a good chance companies will now have more luck getting younger employees to ramp up their participation in retirement plans than they did in the past.
That’s because there’s new research that suggests this group has undergone a radical shift in their thinking when it comes to retirement planning.
And savvy employers can capitalize on this change to bolster 401(k) participation.
First, the numbers: More than half (55%) of employees under the age of 40 said that retirement security has become a more important issue for them over the past three years.
Forty-five percent of workers in this age bracket are concerned their employer will reduce their retirement benefits over the next two years.
And it appears these workers would be willing to give up a lot for better retirement benefits.
In fact, 44% of employees under 40 with defined-contribution plans said they’d be willing to pay a higher amount out of their paycheck for a more generous retirement benefit.
These stats all come from the 2011 Towers Watson Retirement Attitudes Survey.
With younger workers more concerned about their future, now is the time to ramp up your 401(k) education.
One way: Asking your provider to hold education sessions specifically for younger employees, focusing on what they should be doing and where they should be in terms of their 401(k) balances.