August 19, 2013 (PLANSPONSOR.com) – More attention needs to be paid to younger employees when it comes to investing for retirement, according to a new study from Hearts & Wallets, LLC.
The study, “Inside
Retirement Advice 2013: Accumulator Focus, Acquiring and Growing Relationships
in the Workplace, Online and with Advice and Guidance,” found retirement
services firms have traditionally targeted those between ages 35 and 44. When
it comes to employees that are between 21 and 35 years old, “Three-quarters of
firms agree that they need to do something different for younger investors,”
said Chris J. Brown, principal, Hearts & Wallets.
According to the study, only 16% of resources are devoted by
these firms to seeking out younger employees/investors. Similarly, only eight
percent of firms operate with a focus towards this younger group.
Because few of these younger employees are strongly planning
for or interested in retirement, Brown said, retirement services firms need
to “speak the language of younger investors.” Most of those surveyed for the
study (90%) agree these younger employees “demand more immediate and
varied ways to communicate, access and validate” plan-related information and
that “the industry will have to adapt.”