Why now’s the time to target younger workers with 401(k) education
There’s a good chance companies will now have more luck getting younger employees to ramp up their participation in retirement plans than they did in the past.
That’s because there’s new research that suggests this group has undergone a radical shift in their thinking when it comes to retirement planning.
And savvy employers can capitalize on this change to bolster 401(k) participation.
First, the numbers: More than half (55%) of employees under the age of 40 said that retirement security has become a more important issue for them over the past three years.
Forty-five percent of workers in this age bracket are concerned their employer will reduce their retirement benefits over the next two years.
And it appears these workers would be willing to give up a lot for better retirement benefits.
In fact, 44% of employees under 40 with defined-contribution plans said they’d be willing to pay a higher amount out of their paycheck for a more generous retirement benefit.
These stats all come from the 2011 Towers Watson Retirement Attitudes Survey.
With younger workers more concerned about their future, now is the time to ramp up your 401(k) education.
One way: Asking your provider to hold education sessions specifically for younger employees, focusing on what they should be doing and where they should be in terms of their 401(k) balances.
Free Training & Resources
White Papers
Provided by Personify Health
Further Reading
The IRS has announced updated health savings account (HSA) contribution limits and high-deductible health plan (HDHP) parameters for 2027, ...
While the IRS can assess penalties under the Affordable Care Act (ACA), it can’t issue the certifications required beforehand, a court ha...
You have great well-being benefits. So why don’t employees use them to the max? Nearly 80% of employees have access to well-being ...
Today’s economic conditions have placed most working Americans in a tight spot unlike anything since the Great Depression. And it’s...
It’s that time of year again: Employer health insurance plans are up for renewal. For finance leaders, this period can feel like a lotter...
On Aug. 7, 2025, President Trump signed an executive order expanding 401(k) plans’ ability to include alternative investments – such as...