Eighty percent of Millennials said they would prefer to work for a company with a 401(k) plan, according to a survey by Fisher Investments 401(k) Solutions. However, 80% of Millennials failed Fisher’s 401(k) IQ in the Workplace Quiz, indicating that they are in need of education about retirement planning.
Millennials rely the most on information about retirement planning from individual contacts, be they friends, relatives or co-workers, dispelling the notion that they rely solely on the Internet. They also said they would like their retirement provider to reach out to them personally.
However, only 25% of Millennials working at companies with 200 or fewer employees are enrolled in their plan. Millennial women are less confident than Millennial men in their ability to pick investments. They are also less likely to be enrolled in their company’s plan and more likely to fail the 401(k) IQ Quiz.
“We’re encouraged that the vast majority of Millennials recognize that 401(k) plans can be indispensable to meeting their long-term savings goals,” says Nathan Fisher, managing director of Fisher Investments 401(k) Solutions. “However, when you get down to the nuts and bolts of planning, it becomes clear there’s an education gap. What’s interesting is the reliance and trust Millennials place on advice from their immediate network instead of retirement providers.”
KRC Research conducted the online survey of 1,013 employees for Fisher Investments, conducted in early October.