So much for squandered youth. It’s not that millennials are immature or irresponsible, it’s that they don’t have access to 401(k) plans.
Young Invincibles, a millennial-focused advocacy organization, recently found that less than half of low-income working millennials have access to an employer-sponsored retirement account.
The organization’s report, titled “Millennials, Savings, & Retirement Security,” also found that millennial workers with a 401(k) plan are 77 percent more likely to save consistently than those without an employer-sponsored plan. Additionally, more millennials would put a 10 percent increase in income towards saving than spending or debt service.
Further research finds:
Less than half of low-income workers have access to an employer-sponsored retirement plan: Seventy-four percent of millennials surveyed that are working full- or part-time have access to an employer-sponsored retirement plan, however access to these plans varies dramatically by income level. Just 48 percent of workers earning under $25,000 have access to an employer-sponsored plan — far under the 72 percent of workers earning $25,000 to $50,000, 77 percent of workers earning $50,000 to $75,000, and 84 percent of workers earning $75,000 or more.
Millennial workers’ access to an employer-sponsored retirement plan varies dramatically by education attainment: 64 percent of millennial voters without a bachelor’s degree have access to an employer-sponsored plan, however that increases to 82 percent among those with a bachelor’s degree or higher.
Access to an employer-sponsored retirement plan varies by political affiliation and geography: Democrats are somewhat more likely to have access to an employer-sponsored plan (77 percent) than their independent and Republican counterparts (72 percent each). By region, access is notably lower in the West (63 percent) than other parts of the country (77 percent).
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and 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. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
