4 ways to engage a younger workforce with pension saving
Pensions are not exactly top of the agenda for younger generations, especially when they feel so far away from retirement age.
However, according to a report from Charles Schwab, Gen Z, more than any other generation, want to retire early. The question is can they do it? Well yes, but they need support from you, their employers.
There is a correlation between people who are on track for their retirement goals and strong financial wellbeing. When employees are on track with their pension savings, they feel more confident about their financial future.
And confident employees equals happy employees.
Make it personal
To motivate and connect with your younger workforce about their pension savings requires personalised experiences targeted on their life stage, unique needs and financial priorities in the present.
Here are four ways that employers can engage younger generations with their retirement:
1. Financial education
Lack of financial education at school and money taboos mean most people – particularly younger employees – don’t know how to plan for retirement.
It’s therefore left to employers to provide pension education. But to engage the younger workforce, the financial education needs to be personalised, inclusive guidance that reinforces how to tackle pension savings throughout their career.
Financial education is the only effective way to encourage employees to spend wisely and save at the same time.
2. Mentoring
To supplement education, training and mentorship programmes are effective ways to motivate retirement planning strategies.
Younger employees may feel inspired by seeing their peers engaging with retirement planning.
Make it fun by facilitating peer-to-peer mentoring programmes or establish different networks where employees can share their retirement experiences, tips, and best practices for saving.
3. Creative campaigns
Consider launching a series of creative financial wellbeing awareness campaigns throughout the year that include clear, accessible instructions to learn more.
Global Money Week (18-24 March), Financial Literacy Month (April) and Pensions Awareness Day (9 September) are examples of key events employers can flag up.
And the campaigns should integrate with workshops, educational resources and retirement planning tools to motivate and remind different generations about life after work.
4. Matching contributions and incentives
Offering employer matching or other incentives can motivate younger employees to take part in the pension plans you offer.
Matching contributions provide an immediate boost to employees’ retirement funds, and improve their lives in retirement.
Help younger generations achieve their early retirement goals by supporting their financial preparations today. Get in touch if you want to find out more about how Nudge can motivate your younger workforce to engage with their pension savings.
In partnership with Nudge
A leading financial wellbeing benefit using behavioural science & technology to help employees.
