There’s a lot of reports about how Millennials aren’t saving, or aren’t saving enough, for retirement — but a new survey tells a different story.
Fidelity reports that the average balance for Millennials who have been continuously active in their 401(k) plan for 10 years reached a record $92,900 at the end of the second quarter, an increase of nearly 10% from $84,700 one year ago.
The overall balance for long-term savers reached $241,300 at the end of Q2, up from $231,500 one year ago.
The percentage of Fidelity customers with all of their 401(k) assets in a target date fund or managed account topped 45% at the end of Q2, a record. Among savers with all of their 401(k) savings in a target date fund, only 1% made an investment change within their 401(k) over the past 12 months, compared to 13% of 401(k) investors taking a “do it yourself” approach.
‘Moving’ Millennials
Speaking of Millennials, a survey OneAmerica conducted found that promotion of a retirement plan by the plan sponsor is most effective at spurring those younger than 35 (40%), compared with less than a third (32%) among older workers.
The survey also showed that younger participants are more open to “new and interactive” types of communication and engagement: Participants younger than 35 are almost twice as likely to welcome text message notifications than respondents age 50 and older are.
The survey also shows that employers should facilitate a “friends and family discussion” by providing materials that help introduce topics and guide the conversation, especially for the youngest age group, due to the influential nature of so-called “water cooler chats.”
Fidelity reports that the average balance for Millennials who have been continuously active in their 401(k) plan for 10 years reached a record $92,900 at the end of the second quarter, an increase of nearly 10% from $84,700 one year ago.
The overall balance for long-term savers reached $241,300 at the end of Q2, up from $231,500 one year ago.
The percentage of Fidelity customers with all of their 401(k) assets in a target date fund or managed account topped 45% at the end of Q2, a record. Among savers with all of their 401(k) savings in a target date fund, only 1% made an investment change within their 401(k) over the past 12 months, compared to 13% of 401(k) investors taking a “do it yourself” approach.
‘Moving’ Millennials
Speaking of Millennials, a survey OneAmerica conducted found that promotion of a retirement plan by the plan sponsor is most effective at spurring those younger than 35 (40%), compared with less than a third (32%) among older workers.
The survey also showed that younger participants are more open to “new and interactive” types of communication and engagement: Participants younger than 35 are almost twice as likely to welcome text message notifications than respondents age 50 and older are.
The survey also shows that employers should facilitate a “friends and family discussion” by providing materials that help introduce topics and guide the conversation, especially for the youngest age group, due to the influential nature of so-called “water cooler chats.”
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