What do all of your employees have in common?
Millennial, Generation X and both early and late Baby Boom employees all surprisingly have this in common:
None of them are preparing for retirement in an ideal way.
Financial Finesse, a provider of workplace financial wellness programs, recently released a report that shows employees aren’t doing enough for retirement.
For late baby boomers that are on the cusp of normal retirement age, 50% have not run a retirement projection and only 25% know they are on target to retire comfortably. The numbers are even lower for Millennials and Gen-Xers.
The report also found that early and late baby boomers tend to over-prioritize college planning at the cost of their own financial security. Only 16% of early baby boomers and 10% of late baby boomers reported having a long-term care insurance policy even though the average cost of a private room in a nursing home is $90,520 a year according to the 2012 MetLife Market Survey of Long-Term Care Costs, making it one of the most significant threats to financial security in retirement.
It may come as a surprise, but in terms of response to the recession, Millennials are actually handling their money better than Generation X, even with the lowest income levels. Generation-X is having a harder time with debt, making ends meet, and most aspects of overall financial planning.
Greg Ward, director of Financial Finesse, said the data shows why it is more important than ever for firms to educate its younger employees on the importance of saving for the future and building their nest egg at an early age. Automatic enrollment and automatic contribution are just a few tools that can go a long way for boosting participation in a company 401(k). Having an online platform for employees to easily analyze their contributions and projections can also do wonders.
What are some ways you boost retirement planning? Let us know in the comments below.
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