Millennials and Gen Z employees aren’t stashing enough away for retirement, CNBC reports.
What’s going on: “Millennial and Gen Z employees under 35 currently have an average of $37,211 and $6,264, respectively, saved in their 401(k) retirement plans, according to a new report released by Vanguard, an investment firm that represents more than 30 million investors.”
- The older workers in this age group (25–34) have an average total savings rate of 10.5%, while the younger ones (under 25) have a rate of 8%.
- For comfortable retirements, plan participants should be saving at a rate of 12% to 15%, according to Vanguard.
The good news: “Retirement plan contributions reached a record high last year, according to Vanguard. The investment firm attributes this trend to the increasing usage of automated features, such as automatic enrollment and automatic annual contribution increases.”
What manufacturers can do: Employers that help their workforces achieve financial security for retirement are highly sought after. The NAM Manufacturers Retirement & Savings Plan is a multiple-employer plan that provides account management, financial education and retirement security for your employees—while reducing administrative costs and shifting fiduciary responsibility from you as the employer. Learn more here.