One of the biggest challenges facing retirement plan sponsors today is helping younger employees connect with the idea of saving for a future that feels decades away. At a recent TPSU program hosted at Bellevue College in Washington, Jillian, Director of HR for a manufacturing company with approximately 75 employees, shared a simple but effective strategy: shift the conversation from retirement to becoming a millionaire.
Rather than focusing solely on contribution percentages, Jillian encourages employees to visualize the long-term impact of saving early. By showing how even small contributions can grow over time through charts and projections, employees begin to see retirement savings as an achievable financial goal rather than a distant obligation. She noted that participation rates often increase when younger workers can clearly understand the connection between today’s decisions and tomorrow’s outcomes.
Read the Full Transcript Here:
Fred Barstein:
Greetings, my name is Fred Barstein. I’m the CEO and Founder of TPSU. We just completed a program here at Bellevue College in Bellevue, Washington, in the Seattle area. I’m here with Jillian. Welcome, Jillian.
Jillian:
Thank you.
Fred Barstein:
Would you mind if we ask you a few questions?
Jillian:
Yes.
Fred Barstein:
Thank you. Before we do, tell us a little bit about yourself and the size of your organization.
Jillian:
I am the Director of HR for a small manufacturing company. We have about 75 employees.
Fred Barstein:
Very good. One of the things we hear a lot is: How do we get younger people excited about saving for retirement? Is that an issue you face, and how have you addressed it?
Jillian:
Absolutely. It’s a real challenge to get young people thinking that far into the future and feeling inspired or excited about a retirement plan. My approach is to get them thinking about becoming a millionaire when they retire and focusing on those larger dollar amounts—what a small percentage of savings today can translate into in the future.
I do see participation rates increase when employees start thinking about it that way.
Fred Barstein:
We’ve also heard from other plan sponsors who actually show employees charts illustrating how contributing 2%, 3%, 5%, or 6% over time can grow significantly. That way, it’s not just theoretical—they can actually see the results.
Jillian:
Exactly. That’s been very effective.
Fred Barstein:
That’s great that you’re doing that and that it’s working.
Final question: What did you think of TPSU? Maybe share a couple of things you learned and whether you would recommend it.
Jillian:
I learned so much. I’m really glad that I came today. I gained a better understanding of my responsibilities as a plan sponsor, areas that I can look into further, questions I can ask my advisor, and ways to better engage employees to save for retirement.
It was a great experience, and I’m happy to be here.
Fred Barstein:
Great. Well, thanks for coming, and thank you for watching 401kTV.
