Seniors saving for retirement seems a little out of place. Seniors saving for retirement seems downright anachronistic. Seniors saving for retirement has now been confirmed in a study, The study conducted by Quality Logo Products – identifies that three-quarters of college seniors are now planning! (It may surprise you to learn that means college seniors, not the ones who qualify for AARP discounts.)
While planning for their financial future is top of mind for college seniors, their confidence in that future is less than optimistic. The survey of 900 current college seniors, found that this cohort is quite concerned about life post-graduation. That can be interpreted as financial stress.
Key findings from the survey include:
- A majority (84%) of America’s college seniors don’t have a job lined up for when they graduate.
- Upon graduating, 40% plan on beginning their first job.
- Only 12% anticipate staying at their first job for five or more years.
- Flexible hours is the top priority for the class of 2023.
- A majority (54%) of college seniors are concerned about affording rent and utilities as they enter the workforce.
- The class of 2023 holds post-graduation expectations that do not align with reality: 43% expect a starting salary of $60,000, but the average college graduate earns just $42,000.
Flexible hours are a top priority (68%) for college seniors when it comes to employee benefits. Retirement plan contributions ranked second (34%), with mental health benefits a close third (28%).
Looking at their financial expectations, 25% of college seniors now expect to earn a lower salary than they did when they started their course of study. Still, only 18% of seniors expect their starting salary to dovetail with the national average; 1 in 5 expect to earn $70,000 to $100,000. Despite their lofty earnings expectations, many are still concerned about making ends meet. Nonetheless, 52% say they won’t negotiate their first salary, even if it’s lower than expected.
Nearly a third of the class of 2023 hopes to work remotely at least 25% of the time, but 85% of employers won’t likely allow remote work. These folks’ expectations about job satisfaction are also misaligned: 70% said they expected to enjoy their first job, however, only 20% of Americans report being passionate about their job.
It is encouraging that the majority of college seniors plan to save for retirement and that employer contributions are important. The takeaway for employers is that while recruiting new talent, be sure to tout the retirement plan, if you offer one. Since the class of 2023 also values flexible hours and mental health benefits, be sure to put those benefits front and center in the interview process also. If your firm does not offer those benefits it may be difficult to attract and retain quality talent. In that case, it may be worth revisiting your employee benefits package and making adjustments to fit the needs of new graduates. Seniors saving for retirement may be just the talent you can attract and help!
