It’s hard to get the attention of younger workers (Millennials) about retirement even if they have access to a 401k or 403b plan at work. It’s like saving for a stranger for an event decades away. A plan sponsor attending a TPSU at Loyola University in the Baltimore area reveals some strategies she uses to get their attention.
RELATED READING: The Plan Sponsor’s Guide to Communicating with Millennials
Though there are only 130 employees in the Baltimore area, the company has 37,000 workers, mostly in the US and has the typical challenges of a large geographically dispersed organization. It’s hard to communicate with everyone with so many locations and different languages. Participation is high but the company employees many younger entry level workers posing a challenge to educate them about the importance of saving for retirement in the company’s 401k plan.
Some of the techniques used by the Baltimore based organization include:
- Focusing on life changing events
- Using different methods of communicating like texting
- Showing how a relatively small percentage saved makes a big difference early and does not substantially effect their paycheck
But the two most important techniques that the plan administrator attending TPSU found is to be honest and use peers that are successfully participating in the company’s 401k plan. She asks if they really want to work past 70 and uses the analogy of treating retirement like a vacation. Planning for retirement can be like planning for a vacation.
Less effective is older professionals showing up in suits and ties to talk about portfolio construction or the stock market. Using peers and interactive education programs is more effective – as is providing free food to entice them to come. A plan sponsor attending a TPSU program in Boston decided that they shouldn’t have to offer food to get workers to learn about their retirement and found that the first question at the education meeting was, “Where’s the pizza?”
