Pattie Lovett-Reid: Millennials smarter than you think when it comes to retirement planning
Millennials are smarter than you think when it comes to retirement planning.
Healthcare – once considered the most valued company benefit – is rapidly being replaced by pension benefits, and millennials are prioritizing this more than baby boomers.
According to a recent Accenture survey, 78 per cent of job seekers indicated a critical deciding factor in whether or not to accept a job was the ability to participate in a pension plan. Furthermore, pensions remained an important loyalty factor even after employees were hired. Seventy-three per cent of the respondents said they stayed with their employer due to pension benefits.
Time and time again we hear from retirees about what they would have done differently when it comes to retirement planning: Start saving earlier, tuck away more money and plan for living longer than you expect.
The challenge for many people, though, is they simply can't do it alone. It’s not surprising that nine out of 10 millennials in the survey cited an interest in finding out more about retirement planning, while 86 per cent said they would embrace retirement coaching.
This is important for employers who are looking to recruit talented people. Companies need to acknowledge the importance of retirement benefits, and also build awareness around retirement benefits. Twenty per cent of survey respondents said they didn't even know their employer offered retirement planning or coaching, and end up looking at digital channels.
Unmet retirement demands due to the demise of defined benefit plans and to some extent define contribution plans is leaving employees feeling vulnerable and isolated. Companies that addressing these concerns will ultimately be the leaders in the war for talent.