Young people won’t listen to much, but they will listen to plan sponsors about the importance of 401(k) plan participation.
According to a recent OneAmerica survey, employers “should actively promote the advantages of signing up—a task that becomes progressively more difficult as their workforce ages.”
Employer promotion of the 401(k) or similar plan is most effective at spurring those younger than 35 (40 percent), followed by 35- to 49-year-olds (32 percent) and lastly those aged 50 and older (32 percent).
“The older participants get, the less effective workplace promotion of retirement benefits is,” Marsha Whitehead, vice president of marketing for retirement services for the companies of OneAmerica, said in a statement. “It’s imperative that plan sponsors and financial professionals get involved early in every sense of that word. They need to think of themselves as a trusted resource for their employees — particularly those younger than 35.”
Survey results suggest that employers should tailor messaging and education programs by age group, due to different concerns and priorities. For example, participants just starting their careers tend to be more concerned about student loans compared to participants who are closer to the end of their careers.
The survey also showed that younger participants are more open to “new and interactive” types of communication and engagement. Participants younger than 35 are almost two times as likely to welcome text message notifications as those respondents age 50 and older.
The survey also shows that employers should facilitate a “friends and family discussion” by providing materials that help introduce topics and guide the conversation, especially for the youngest age group, due to the influential nature of so-called water cooler chats.
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.
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