Benefits

Communication Needs More Focus on Younger Employees

By Kevin McGuinness editors@plansponsor.com | August 19, 2013
Page 1 of 2
View Full Article

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.”