Benefits

How to Engage Younger Employees in Retirement Saving

By Jay Polansky editors@plansponsor.com | June 29, 2012
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June 29, 2012 (PLANSPONSOR.com) – Saddled with student loan debt or a down payment on a house, younger employees see retirement saving as far off.

“When we use the term ‘retirement’, they tune out.” Danelle Kronmiller, director of marketing for Individual Investor Services at The Principal Financial Group, told PLANSPONSOR. “Our job is getting them to prioritize saving for retirement.”

Employee communications should engage younger employees by discussing retirement in current terms. Instead of telling younger employees the total amount of money they need for retirement, Kronmiller suggests plan sponsors and financial professionals show them how little a portion of their paycheck they need to stash away to reach their retirement goals.

That way retirement seems more pressing, or as Kronmiller said, “in the here and the now.”

Kronmiller also suggests sending targeted communications to younger employees. At The Principal, younger employees (members of the "Getting Started" life stage, clients who are between the ages of 20 and 34) receive a newsletter with information tailored to their needs.