Build Retirement Plans for Different Generations

A strong retirement plan is at the center of financial wellbeing, productivity and employee engagement. But when the workforce is comprised of several generations — from Gen Z all the way to Baby Boomers — crafting a retirement plan that meets the needs of all employees can seem impossible.

Young workers may be concerned about anything but saving for retirement. Millennials may be trying to save for a home down payment. Gen X employees could be worried about how to pay for college or credit card debt. And Baby Boomers are often wondering how they can retire when they’ve been strapped for many years paying down credit card debt, paying for college and making home payments.

So how can employers help young adults establish strong early career savings habits while helping pre-retirees prepare for their exit from the workforce?

Scraping by today becomes an obstacle for tomorrow

For employees who are scrambling financially and can’t find the extra money to save for tomorrow, saving for retirement may seem like an unattainable goal.

Debit is a problem for Americans, no matter their age: Roughly 9% of credit card balances fell into delinquency in 2023.¹ That might not be surprising, given credit card interest rates are averaging nearly 25%.²

Employees emotionally and mentally stressed over their finances — and their financial future in retirement — are less focused on their jobs and less productive.

Retirement plans for different generations are built through education

With auto-enrollment for new employees, government contributions for lower-income workers and access to savings in case of emergencies, SECURE Act 2.0 will help increase participation. Also, employers can also take steps to personalize the retirement plan to increase engagement while sending personalized messaging to address a range of scenarios that affect individual employees.

Education for younger employees on finances can help them budget effectively, spend wisely and save diligently. In addition, it’s important to educate employees — of all generations — to understand how the realities of retirement, including how much they’ll need to have in retirement (rather than simply being told to max out employer matching contributions).

Much of improving retirement planning across different generations in the workforce is behavioral: Understanding how to budget, how to address multiple priorities and why long-term savings goals like retirement sometimes need to take priority over immediate or short-term wants like an expensive vacation or car.

Employers investing in their employees’ financial wellbeing results in a better engaged, more productive workforce. Tools like HUB FinPath can help strengthen the financial health of a workforce, through the use of financial coaches and interactive learning and planning tools to help employees better manage their relationship with money.

HUB Retirement and Private Wealth offers institutional and retirement services to for-profit and not-for-profit organizations and customized private wealth management services to individuals and families. HUB Retirement and Private Wealth employees are registered representatives of and offer securities and advisory services through various broker dealers and registered investment advisers, which may or may not be affiliated with HUB International. Insurance services are offered through HUB International, an affiliate.

¹ Federal Reserve Bank of New York, “Household Debt and Credit Report (Q1 2024),” accessed May 28, 2024.

² Lendingtree, “Average Credit Card Interest Rate in America Today,” May 13, 2024.