From boomers to Gen Z, creating financial wellness at any age

Today's workforce encapsulates five different generations, and each age group, from Gen Z to baby boomers, have widely different financial needs and concerns that need to be on their employers' radars in a post-pandemic world.

Today's workers feel sky-high levels of financial stress — the pandemic has worsened people's perceived financial outlook, and 83% of adults are stressed by high inflation rates, according to the American Psychological Association. Despite their concerns, only about 50% of employees  feel comfortable talking to their managers about financial well-being. To help, employees need to tailor their benefits more specifically to their employees' needs and invest in financial literacy programs.

Read More: Financial stress is taking a toll on employees' social lives

With such a diverse workforce, there's no one-size-fits-all strategy to ensure financial wellness. But with the right approach, employers can help each generation tackle their financial concerns. 

Gen Z and young millennials

Student debt is a top concern for both Gen Z and young millennials. Two-fifths of millennial employees have student loans and on average, members of Gen Z owe about $20,900 in student loans, 13% more than their millennial counterparts, according to The Federal Reserve Bank of St. Louis. And with student loan repayments restarting soon, paying off debt will likely become an even higher priority than it is already.

At this age, financial literacy is key, says Craig Rubino, head of participant insights, financial wellness, and learning for Morgan Stanley at Work. Debt management tools and education around basic financial concepts can get younger employees off on the right foot. 

To help younger employees make smarter decisions about their finances, he suggests that the workplace provide a multitude of educational tools from webinars and workshops to coaching and financial advisers.

Older millennials and Gen X

As employees age, their financial priorities adjust, too. For members of these generations, employers should emphasize savings and family planning. 

While some employees have been saving for decades, workplaces should continue to emphasize retirement savings habits like catch up contributions into 401(k)s, as well as how to conduct 401(k) rollovers as employees work their way up the corporate ladder, Rubino says. Unlike their younger counterparts, older millennials and Gen Xers are able to digest information for longer periods of time — something he believes employers need to keep in mind when conducting workshops.

 "The styles of learning definitely vary by generation," he says. "For Gen X, they're sort of straddling a fence of two styles of learning. They like traditional training, but they like it in smaller chunks." 

Employers can also provide financial planning sessions for families, such as those with children or those going through a divorce.  For parents' looking to save for their higher education, sessions on 529 contributions and the college education system in general can be particularly helpful. 

Baby boomers

Reaching the retirement finish line is the top priority for the oldest demographic of employees. As millions of baby boomers retire each year from the U.S. labor force, workplaces should provide a more personalized and tailored approach with financial advice, says Rubino. 

"For generations that are nearing retirement and trying to make the best decisions, they like to have a lot of context about what to do with the nest that they've built up," he says. 

Employers should also take into account the impact high inflation is having on  future retirees' saving plans. Employers can help their older workers re-evaluate their retirement plans with access to financial advisers or online savings tools, like financial calculators. 

Regardless of the generation, financial education proves to be the throughline in the journey towards financial success. Education gives individuals the ability to adapt in different parts of their financial journey.

"While there are definitely unique trends for each generation, no matter the age group, we believe that the most important place to start is financial education," says Rubino.
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