Forbes is reporting that Millenials (those of us who are really 30 and under) are seriously deficient in their retirement saving. The reasons proffered include disinterest in standard retirement plans due to recent market volatility, huge student loan debt, and general youthfulness (i.e. “Retirement? Isn’t that something that you worry about when you’re 40?”) Obviously any fix to the situation would require some kind of persuasive education and a realistic platform for saving. Of course, any suggestions along those lines will be immediately discarded precisely for the reasons that the Millenials are not saving in the first place: the market is not growing any steadier, debt takes years to pay off, and 40 is at least 60 years away. Here at Broad we have not yet seen any movement amongst Millenials, although we have recorded a huge jump in Gen X interest. It could be self direction, with its “create your own app” kind of sensibility, might be the inspiration needed to move forward with retirement investing.
Charles Passy, in a recent WSJ article, doesn’t give a one-size-fits-all answer, but he does mention one striking statistic. If you want your business to be attractive to top employees, there are three major factors in an employee’s decision. The first is salary (obviously.) The second is healthcare benefits. (Of course, these may or may not continue to be a top factor. The efficacy of our legislative process is wonderfully reassuring as to future stability.) And the final factor is an attractive retirement plan. Apparently whether or not employees use it to its fullest, the mere presence of a plan is enough to give employees a happier outlook regarding the position. Find out more about Small Business Retirement Plans.
Yes, the courts are coming around to your side. The WSJ recently reported on a court case involving International Paper and its employees. The workers sued because they felt the retirement plan being offered had unreasonably high fees and a plethora of unsuitable investments. The company settled with a $30 million package. A number of these cases are now working their way through the court system, and offer hope to frustrated employees. Unhappy with your company enough to sue? You might just be able to get a little something out of it.
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