Unlike business owners of other generations, Millennials are more likely to be prepared for and supportive of their employees’ retirement planning, a Nationwide survey suggests.
The survey notes that 57 percent of millennial business owners feel it is their responsibility to help their employees save for retirement compared to just 31 percent of baby boomers and 44 percent of gen X business owners.
“Our research shows that millennial business owners understand both the importance of saving for retirement and the need for workplace retirement benefits,” said John Carter, president of retirement plans for Nationwide. “Millennials grew up during the Great Recession a decade ago, which significantly impacted how the generation spends, saves and manages their money and businesses. Now, they are planning ahead and taking actions that could help them and their employees achieve financial security in retirement.”
Benefits are a crucial consideration for potential new hires and retaining current employees. According to the survey, 51 percent of millennial business owners agree that offering a comprehensive retirement plan helps them attract and retain talent.
“With the continued economic expansion tightening labor markets, it’s more important than ever for employers to offer comprehensive benefits like retirement plans,” Carter said.
Nearly a third of millennial business owners say tax reform and the current economy has left a lasting impact on them, enabling them to increase retirement fund contributions.
The End Game
But it doesn’t stop there. Millennials also have their eyes on the big picture. Millennials are 13 percent more likely than previous generations to have an exit plan for their businesses than previous generations.
In fact, 23 percent of millennial business owners have identified a third-party to sell their business to in preparation for their retirement.
Carter said, “It’s promising that Millennials are so focused on retirement and want to do more to prepare both themselves and their employees for retirement.”
AdvisorNews Managing Editor Cassie Miller may be reached at cassie.miller@Adnewsfeedback.com. Cassie has an extensive background in magazine writing, editing and design. Follow her on Twitter @ANCassieM.