For many Millennial employees, retirement feels like it’s a million years away. It’s difficult to prioritize saving money for something that’s decades away, especially when there are more pressing financial issues, like a mountain of student debt.
That doesn’t mean your employees aren’t thinking about saving for retirement; a Charles Schwab survey released last year found that 38 percent of Millennials cited retirement savings as their biggest source of financial stress and 49 percent of all workers surveyed said they feel it’s impossible to figure out how much they’ll need to save to retire comfortably.
Best Money Moves founder and CEO Ilyce Glink has been busy talking to employers around the country about the financial issues they struggle with most. Retirement savings and investing are of particular interest to Millennial employees, who struggle to figure out how much to save and where to put that money to get the best returns down the road.
These are some of the retirement and investing questions Ilyce has been getting from Millennial employees:
- How much should I be saving as a 20-something?
- How much should I be putting into my 401(k)? How much should I put into other investments like stocks or mutual funds?
- What savings vehicles are available to me besides IRAs, 401(k)s and HSAs? Which is best? How much should I put into each?
- What types of investments are smart for someone of my age?
- How do I invest in stocks?
- How do I invest in mutual fund?
- How can I assess risk vs. long-term growth in my investments? What’s a good or safe target growth rate?
- How do taxes differ on different types of investment vehicles?
- What are the best long- and short-term investment vehicles?
- How do I build a diversified portfolio?
The fact that young workers are asking these types of questions is a great sign. Knowing what you don’t know — and seeking the answers you need — is the first step to reducing financial stress and building a more financially secure future.
When employees ask these questions, employers need to step up to help them find answers. It’s not enough to simply offer a 401(k) program, most of which are cumbersome and complicated.
While it’s an excellent benefit, it doesn’t help much if your employees don’t know how to make the most of it. And, if your employees understand the concept of a 401k, but don’t know enough about budgeting to find a few extra bucks each month to stash away in it, it won’t be an effective use of company financial wellness dollars.
That’s where Best Money Moves comes in. The program helps employees assess their financial stress, learn how to manage and solve financial problems, and find room in their budget to both pay down debt and investment in the company’s 401k.
Let us help you help your employees. Call Best Money Moves today at 847-242-0550.