SHRM: Generation Z Eyes Early Retirement, Wants Personalized 401(k) Advice
In a recent article from SHRM, Kathy Gurchiek explores the implications of a new Schwab study about the retirement goals and attitudes of Generation Z:
Workers ages 21 to 26 want to retire at age 61. However, these Generation Z members say inflation, monthly bills and unexpected expenses are among the obstacles to saving for a comfortable retirement, according to a new Schwab study.
“Younger workers are still finding their financial footing in an economic environment that is challenging everyone,” said Brian Bender, head of Schwab Workplace Financial Services, in an announcement of the findings. “They’re just starting out, so it’s no surprise that they may feel greater financial pressure, especially with such an ambitious timeline to retirement.”
And while 99 percent of Generation Z respondents noted hurdles to retirement savings, they’re not the only ones: 91 percent of Generation X members, 88 percent of Millennials and 86 percent of Baby Boomers also share their worry.
Additionally, slightly more than half (52 percent) of the 1,000 U.S. workers surveyed said their employers took steps in the past year that helped them manage their financial stress. Among Generation Z workers who credited their employers with some type of action:
- Increased pay—31 percent.
- Increased 401(k) match—25 percent.
- Handed out an additional bonus—23 percent.
- Decreased their hours for better work/life balance—17 percent.
- Added new employee benefits—15 percent.
To read the article on SHRM’s website in its entirety please click here.
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