5 retirement savings plan engagement strategies for young employees
March 31, 2016 6:21 AM
5 retirement savings plan engagement strategies for young employees
College graduations are just around the corner, which means a new group of young people will join the workforce in the coming months. As these new employees begin their careers, it’s important for their employers and advisers to ensure they understand the value of saving for retirement. With looming college debt and other living expenses, many young employees aren’t worried about the future and financial planning, and instead choose not to participate in their retirement savings plan or do not invest as much as they should.
To better engage younger employees in retirement planning, Kelli B. Send, senior vice president – participant services, with Francis Investment Counsel, shares some helpful strategies to implement.
To better engage younger employees in retirement planning, Kelli B. Send, senior vice president – participant services, with Francis Investment Counsel, shares some helpful strategies to implement.
1) Make it interactive
Instead of simply lecturing at employees, design opportunities for employees to actively engage in their financial education. Videos , activities and prizes put an interesting spin on financial topics.
2) Limit industry jargon
One reason young people shy away from financial discussions is a lack of understanding and the perception that planning for retirement is too complicated. Explore ways to simplify topics, breaking them down for employees to easily understand.
3) Highlight the bigger picture
Saving for retirement is just one component of a healthy financial plan. Young employees especially can benefit from learning how various facets of financial planning like budgeting and debt management contribute to the establishment of a strong financial foundation.
4) Offer one-on-one meetings
Every employee’s needs are unique, so it’s essential that employers offer opportunities for employees to meet with professional advisers one-on-one. This allows them to receive the personalized advice they need to set their own financial goals.
5) Expand employee resources
Financial education resources must go beyond the walls of the workplace. Provide employees with independent access to online planning tools and resources like a retirement savings calculator, informational blog articles and online chat with financial professionals.
