Millennials—we love ‘em, they annoy us and we’ll spend a ridiculous amount of time trying to figure them out. At this point, we’re not even sure they understand themselves, but companies and product producers are falling over themselves to connect.
JPMorgan Asset Management is the latest to take on the younger generation, and helpfully provides three findings on their attitudes toward retirement saving and investing.
- A majority identify as “do it for me” investors.
JPMorgan’s research shows that, “despite their generally accepted reputation as self-assured and independent, those under 30 are more likely than those 30 and over to classify themselves as ‘do it for me’ investors”, according to the firm.
They say they want help selecting their investments and prefer to leave most of the ongoing investment decisions to experienced investment professionals versus older “do it yourself” investors who seem to crop up in every bull market.
- In general, they expect their employers to take responsibility for helping them save and invest for retirement.
“These young employees, less experienced in managing their own finances—and admittedly a long way from retirement—are more likely to assign at least some degree of responsibility to their employers for helping them save for retirement,” JP Morgan reports.
What’s more, half of those under 30 think their employer has an obligation to help them choose the right investments, compared with only 22 percent of their older colleagues.
- They are among the strongest proponents of the “automatic 401k.”
“[P]articipants indicated an encouraging level of support, particularly among participants under 30, for these plan features, as well as asset allocation strategies, that may help automate and simplify employee retirement-related decisions while leaving the ultimate choice in participants’ hands. A large majority are in favor of or at least neutral toward automatic enrollment and automatic contribution escalation, and the group is close to unanimous in its support of target date funds and re-enrollment.”
“Rather than seeing the implementation of the automatic 401k as an example of employers overstepping their roles, participants, especially those under 30, appear to appreciate and to some extent expect their employers to proactively help them get and stay on track for a secure retirement,” the company concludes.
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.
