According to the J.D. Power 2018 Group Retirement Satisfaction Study released May 24, 2018, Millennials are the most likely of all the demographic groups to have set specific retirement savings goals, and have the most savings in group retirement plans relative to age.
The survey found that 51 percent of Millennials have set specific retirement goals, compared to just 44 percent among Gen-X and Boomer participants. Of the 51 percent of Millennials who have set goals, 83 percent say they are on track to meet them.
The survey also found that 61 percent of Millennials have at least $25,000 in retirement savings, and 27 percent have more than $100,000. Conversely, only 75 percent of Boomers have more than $100,000 in savings. This means the average Boomer will hit age 65 with just 3.4 years of current income saved.
Finally, just one-fifth of 401(k) participants plan to roll over to current plan providers. While there is an enormous “money in motion” opportunity looming, just 20 percent of current group plan participants say they “definitely will” roll over those assets to their current plan provider in the future. However, when plan participants are digitally engaged, aware of guidance and education resources, and experience transparency around fees, the likelihood that they will roll over their assets to their group plan provider increases to 48 percent.
Employers can use this information. They should considering upping their game to focus on making information and resources around retirement plans universally accessible through digital means. Employees should, at the least, be able to login to their accounts at their leisure and on the device of choice. Employers should also be sure they are educating older generations on opportunities to catch up and add more to their retirement.