Almost half of Millennials say they want to retire as soon as they are financially able to do so. Confidence in the ability to retire is fairly strong too, with about half of Millennials feeling they will achieve the goal. Interestingly, retirement for Millennials is not based on an age. Instead, financial independence is the new end game.
Freedom To Pursue Passions
Findings from a recent survey conducted by IRALOGIX, a recordkeeping and tech solutions firm, paint this picture of retirement the Millennial way:
“Millennials are revolutionizing the traditional concept of retirement along with the very definition of the word itself, offering a fresh perspective unlike any other generation in the U.S.,” said Lowell M. Smith, Jr., co-founder of … .IRALOGIX. “…. Millennials don’t perceive retirement solely as a departure from the workforce. Instead, they define it as a stage of life characterized by enhanced career flexibility and an opportunity to pursue passion projects and hobbies, fostering personal fulfillment and making a meaningful social impact.”
To wit, just over half (51%) say retirement is defined not by age 65 but by financial independence where they can indulge their lifestyles without relying on traditional employment. About one quarter (24%) noted full retirement at age 65 is a goal they’re highly focused on working toward; and 16% responded that retirement is not necessarily an exit from the workforce, but a time of greater flexibility in their lives.
To understand the Millennial ideal of retirement, the survey asked them “if they see themselves retiring at some point,” and 47% responded that “they will retire as soon as they can afford it,” and “the same percentage expressed moderate confidence that they will accumulate sufficient savings to someday retire.” Another 22% of the Millennials surveyed indicated they will keep working for enjoyment or because “ they don’t have sufficient retirement savings.” Meanwhile, 29% of Millennials “have no confidence” in their ability to ever retire. Indeed, the overall trend toward living into older ages is shifting how everyone’s thinking about retirement.
Flexible hours and flexible benefits are becoming ever more important to workers of all ages, and employers offering these benefits are likely to have a big competitive advantage on the go forward. Consider, for example, an AARP analysis of data from the Bureau of Labor Statistics which uncovered a new bottom line for businesses: “The only segment of the workforce by age that is growing over the next decade is workers who are 75 and older….” Further evidence of older employees remaining active in the workforce comes from Pew Charitable Trusts, which points out: “Currently 62% of workers 65 and older are working full-time, compared to 47% in 1987.”
Protecting Resources–Including Your Own
These days, plan sponsors find themselves extra busy with the work of staying current on ERISA compliance, sifting through SECURE 2.0 provisions, and making benefits competitive. While grappling with the host of trends impacting the workplace, it’s important to remember that plans are already under heightened scrutiny due to increases in both regulation and litigation. Protection is an essential practice for plan sponsors, and at Colonial, a whole year of Fiduciary Liability Insurance costs less than a few dollars a day.
To further protect the business and retirement plan, Cyber Liability Insurance is included at no extra cost. Armed with Colonial’s liability insurance package, if you face claims of alleged or actual breaches of duty in connection with the employee retirement plan, you’ll be protected with defense costs and penalty limits up to $1,000,000.
Colonial offers a simple and affordable way to protect yourself and your business: just opt in below to upgrade your ERISA bond to include Fiduciary and Cyber Liability insurance. You can choose a 1, 2, or 3-year package.If you already have an ERISA bond package with Colonial, you can even lock in your rates by upgrading to the 2 or 3 year package.
Protect yourself, your business and your plan for the go forward:
ERISA Bond+Fiduciary+Cyber Liability HERE
Providing customers with knowledgeable and friendly service since 1930, Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country.