ROSELAND, N.J., Oct. 23, 2013 /PRNewswire/ -- In support of
National Save for Retirement Week, ADP®, a leading
global provider of Human Capital Management (HCM) solutions, offers
tips to help small and midsized business owners engage Generation X
(employees between ages 30-50) and Generation Y (employees
under age 30) to help raise awareness about retirement
savings. ADP also shares pointers younger employees can take
to get their retirement planning on track for the future.
According to the Employee Benefit Research Institute's (EBRI)
2013 Retirement Confidence Survey, only 13 percent of Americans are
"very confident" about their retirement planning. The study
also showed that 75 percent of workers between the ages 25-34 have
accumulated less than $25,000 in
total savings and investments.
"Generation X and Y workers know they need to plan for
retirement, but often don't feel confident in their ability to do
so," said Chris Augelli, vice
president, product marketing and business development at ADP
Retirement Services. "These younger generations are looking
for assistance in meeting retirement savings challenges.
Employers who can provide them with the tools, guidance, and
investments to help them successfully plan for their future can
significantly boost employee recruitment and retention, and improve
overall morale within their businesses."
Tips for Employers: To best engage with Generation X and
Y employees, employers should remember these tips when helping with
their retirement planning:
- Speak Their Language – Technology has reshaped the way
younger generations communicate. Use modern communication
channels to inform employees about the importance of having a
retirement savings strategy by creating blogs or social media
forums for employee benefits programs, and consider communicating
with employees via text message.
- Offer Automatic Options – Using technology to simplify
the process can help Generation X and Y employees maximize the
benefit of their company's retirement plan. Consider plans
with features like automatic enrollment, automatic rebalancing, and
automatic deferral increases. Including target-date funds for
employees to choose from can also be beneficial. These
investment options provide fully diversified investment portfolios
based on the employee's targeted retirement date.
- Provide Retirement Readiness Information – Younger
employees generally want to study plan information and retirement
savings projections on their own time, so providing easy access to
online, mobile-optimized plan data as part of a retirement
readiness program is important. Consider plan providers that
offer participants interactive retirement savings calculators and
the ability to compare their investment options based on investment
type, performance, fees and more.
Tips for Employees: While Generation X and Y employees
may feel that retirement is too far away to consider today, it is
prudent to start planning today. Below are three steps to
help younger employees get a head start on retirement saving:
- Leverage the Stock Market – The 2008 financial crisis
may have convinced younger workers to distrust the stock market
since many were directly impacted by the unemployment and
underemployment issues that resulted. However, the market
still remains one of the best pathways to grow their retirement
savings over time.
- Diversify Your Investment Portfolio – Younger workers
typically have a longer investment horizon and often have a higher
risk tolerance. This can give them the opportunity to invest
in higher risk investment vehicles that may offer higher
returns. Most importantly, they should embrace a
well-diversified portfolio.
- Enroll Early and Consider Automatically Escalating Your
401(k) – Building on the savings principle of paying oneself
first, younger workers who auto-escalate their 401(k) plan
contributions can take advantage of compounding investment returns
and train themselves to live within their means.
To learn more about ADP Retirement Services, please visit:
www.adp.com/401k.
About ADP
With more than $11 billion in
revenues and more than 60 years of experience, ADP®
(NASDAQ: ADP) serves approximately 620,000 clients in more than 125
countries. As one of the world's largest providers of
business outsourcing and human capital management solutions, ADP
offers a wide range of human resource, payroll, talent management,
tax and benefits administration solutions from a single source, and
helps clients comply with regulatory and legislative changes, such
as the Affordable Care Act (ACA). ADP's easy-to-use solutions
for employers provide superior value to companies of all types and
sizes. ADP is also a leading provider of integrated computing
solutions to auto, truck, motorcycle, marine, recreational vehicle,
and heavy equipment dealers throughout the world. For more
information about ADP or to contact a local ADP sales office, reach
us at 1.800.225.5237 or visit the company's Web site at
www.adp.com.
Media Contact:
Jim Duffy
ADP
(973) 712 - 2070
Jim.Duffy@ADP.com
SOURCE Automatic Data Processing, Inc.