There is good news to report on savings and our future. Time Inc.’s “Why Millennials are Flocking to 401(k)s in Record Numbers” article states that the number of millennials enrolling for the first time in 401(k) plans jumped 55 percent in the first half of 2014. The Bank of America Merrill Lynch 401(k) Wellness Scorecard released the data in their twice a year trending report.
With approximately 25 percent of our workforce today being millennials and projected to become 50 percent by 2020, there is hope for retirement for their generation.
Nate Ryan, a millennial marketer with our friends at CEL Public Relations, provided me his perspective, “It seems my age group is becoming tighter with our spending and giving more attention to our savings in general. When it comes to a 401(k), it is commonly viewed as the easiest way to not be tempted to dip into a savings account for malicious spending habits.”
Perhaps it is the Millenials that have learned from the past and give hope to the future of retirement savings. If so, it is a lesson well learned.
So how do you know if your team comprised of multi-generations measures up? According to The Wall Street Journal “The New Way to Measure Your 401(k)” is based on projected income. The Department of Labor has been encouraging company plan sponsors to provide a projected retirement-income calculation for participants.
We were ahead of this recent reporting trend and continue to provide you with your annual TSC 401(k) Health Check each year. Ten years ago we developed the Health Check with this information on your participants’ 401(k) savings plan contributions. It’s a valuable tool for sponsors and participants. If you have questions about your TSC 401(k) Health Check, contact your TSC Administrator.