Little surprise – Millennials want more time off.
In the vein of party now, pay later, new research from MassMutual finds that 47 percent of American workers age 18 and older want more vacation time. That compares with 44 percent that like better 401(k) matches.
The study, “2015 MassMutual Generations@Work Study,” reveals that preferences for healthcare insurance, retirement savings, vacation and other benefits depend on workers’ generation and gender.
Upon closer inspection, Baby Boomers (ages 50-70) and Millennials or Generation Y (ages 15-35) opt for more time off from work while Generation X (ages 36-49) favors richer retirement benefits. Men tend to prefer more time off while women focus more on health-related benefits.
“Given the varied preferences for employee benefits, the takeaway for employers is to offer as broad a menu of benefits as possible and consider offering new or expanded benefits on a voluntary or employee-paid basis,” Elaine Sarsynski, executive vice president of MassMutual Retirement Services and Worksite Insurance, said in a statement.
Generational Preferences
After choosing more time off, Boomers expressed preferences for financial benefits. Forty-three percent of Boomers would like better 401(k) matches, 38 percent would appreciate having free healthcare coverage, and 24 percent wanted more investment choices for their retirement savings, according to the study. Four in 10 (43 percent) want expanded healthcare benefits.
Breaking with Boomers, Millennials like the idea of flexible work schedules (43 percent) and reimbursements for education and tuition (30 percent). But many Xers joined their Boomer colleagues in wanting better 401(k) matches, most likely a reflection that few Xers have access to pensions and that many Boomers have not saved enough for retirement, according to Sarsynski.
He Said, She Said
Men’s benefits of choice were more vacation time (50 percent), better 401(k) matches (43 percent) and flexible work schedules (39 percent), MassMutual’s study found. Women’s preferences were more evenly spread between more vacation (44 percent), better 401(k) matches and flexible work schedules (40 percent), expanded healthcare premiums (37 percent) and free gym memberships (31 percent).
In addition, there were bigger disparities between men and women when it came to benefits such as free gym memberships (men: 20 percent; women: 31 percent), education/tuition reimbursement (men: 18 percent, women: 27 percent), and more investment choices for retirement (men: 18 percent, women: 11 percent), according to the study.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
