Building retirement relevancy for millennials
The big takeaway
Contrary to popular belief, millennials aren’t oblivious to retirement planning and actually contribute to a retirement plan on a regular basis. However, millennials overall feel little connection to retirement, creating a barrier to plan engagement. Retirement feels far away and intangible, making it difficult for them to engage with and prioritize saving for it among their other financial needs.
Ways to make it relevant
Talk about the present, not just the future
For many millennials, retirement seems too far away to worry about now. One study participant stated, “I’m currently married, but we are both young and early on in our careers that it hasn't been a huge discussion as of yet.” Speaking of retirement in terms of the distant future can leave a gap in engagement. Instead, focus on the present-day benefits of saving or lifestyle recommendations, along with more holistic financial planning components that affect them now.
How Voya is taking action
We know millennials are thinking about immediate financial needs like buying their first home or a new a car. To help ensure they understand long-term impacts of financial decisions made today, Voya is rolling out a feature as part of the interactive, educational myOrangeMoney® online experience in 2017 that allows participants to model a loan and immediately see the impact it has on their retirement savings.
Not-so immediate gratification: Educate on the importance of planning ahead
Although many millennials are saving in workplace retirement plans, they usually can’t tell you why beyond, “I know I should.” Education is key when helping millennials save for retirement. Discuss how they envision their retirement and how they can act now to achieve those goals. Communicating the value of compound interest is a great way to show how investing over an extended period in a tax-favored account could lead to significant growth opportunities and a more secure retirement
How Voya is taking action: Continued education is at the core of helping participants not only get ready, but also feel ready for retirement. Through Voya’s Global initiatives Webinars, millennials and participants of all ages can tune in at a time that’s convenient for them to learn about retirement and holistic financial planning.
About Voya’s Online Community
To better understand consumer attitudes, motivations and behaviors towards financial planning and retirement, Voya works with an independent market research firm LRWTonic to host private, unbiased forums on the Financial Horizons Community.
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Source: Voya Financial Horizons Online Community, Retirement Readiness Exploration, December 2016