Plan Design Ideas for Millennials
Millennials (those born after 1980) seem to favor lifestyle over salary, expect to change jobs and careers, are technologically advanced, and have a tendency to act later rather than sooner. These traits, according to a report from Buck Consultants, suggest a different approach to plan design is needed to engage this group.
Plan design suggestions include:
Offer a robust website that includes frequently asked questions, as well as blogs and community chat forums. Millennials will also expect a smartphone application.
- Include both automatic enrollment and automatic contribution increase features.
- Offer managed accounts and target date funds.
- Make socially responsible investments available.
- Use emails to maintain plan awareness.
- Offer a Roth 401(k) option.
Buck’s report is at http://tinyurl.com/BuckMillennials.
For plan sponsor use only, not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.
Kmotion, Inc., P.O. Box 1456, Tualatin, OR 97062; 877-306-5055; www.kmotion.com
© 2014 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance; nor as the sole authority on any regulation, law or ruling as it applies to a specific plan or situation. Plan sponsors should consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.