Plan sponsors promoting their retirement plans is an effective way to encourage employees younger than 35 according to a survey conducted by OneAmerica. That’s 40% of those surveyed, compared with 32% of older workers.
The study indicated that younger participants are also more open to “new and interactive” methods of communications. NAPA reports, “Millennial participants are almost twice as likely to welcome text message notifications than respondents age 50 and older are”.
Further, the survey indicated that employers should enable a “friends and family discussion” by introducing materials to suggest topics and guide conversations, “especially for the youngest age group, due to the influential nature of so-called ‘water cooler chats’.”
Another study puts to bed the reports that Millennials haven’t been saving enough. Fidelity reports that the average balance for Millennials who have been participating in their 401(k) plan for 10 years have reached $92,900 at the end of this year’s second quarter – that’s up from $84,700 just a year ago.
The overall balance for long-term savers reached $241,300 at the end of 2Q, up from $231,500 a year ago. Fidelity customers with all of their 401(k) assets in a target date or managed account topped 45%, setting a record at the end of 2Q16. Of those savers who had all of their 401(k) savings in a target date fund, only 1% made an investment change over the past year. By comparison, 13% of investors who manage their own 401(k) made changes over the same period.