It’s never been easy to get young employees to put part of their paychecks into a 401(k) account. Let’s face it — you’re probably not too worried about retirement when you’re feeling 10 feet tall and bulletproof. But there are ways to draw ’em in, the experts say. Try these strategies:
- Automatic enrollment. You know how this works — all new hires are signed up for the 401(k) program. If they decide they don’t want to participate, they have to complete the opt-out paperwork. Just the exercise of going over the forms often gets workers thinking about the pros and cons of retirement savings. And companies get an opportunity to sell youngsters on the merits of the program.
- Tailored advice. Sure, your plan probably offers participants some financial guidance. But younger employees have a specific set of concerns, like saving for a first home and budgeting money for college loan repayment. If your 401(k) vendor can show them ways to juggle their current obligations and contribute a little something to their 401(k), young employees are a lot more likely to sign on for the long haul.
- Show ’em you can take it with you. One of the most common misconceptions younger employers have about 401(k)s: They think it stays with the company if they change jobs. So it’s important to emphasize that what they dump into their retirement fund is theirs no matter where their career may take them.
