PLANSPONSOR - December 2017/January 2018 - 44
BEHAVIORAL FINANCE
Future Shock
Millennials prioritize short-term financial goals over retirement saving
The Demographic Group
More than one in three American workers
today are Millennials, or adults ages 18
through 34. In 2015, this group surpassed
Generation X to become the largest share
of the U.S. work force, according to a Pew
Research Center analysis of U.S. Census
Bureau data.
Boasting a disproportionately large
share of immigrants relative to the
entire U.S. population, and most having
reached the traditional age of transition
from college to the working world,
Millennials will continue to add to the
labor market for the near future, Pew
researchers indicate.
A few more stats set the scene for
Millennials' ballooning work force representation,
starting with the fact that
Generation X's labor force participation
rate peaked in 2008, at 84%. In 1998,
according to Pew, Gen Xers were roughly
the same ages as today's Millennials, and
that year only 80% of the Gen X population
was in the labor force. Considering
these statistics together, it is reasonable
for plan sponsors to assume that the
proportion of Millennials in their work
force has room for significant growth.
The Challenge
According to a survey by BMO Wealth
Management, only 10% of Millennials
consider retirement planning a current
priority. Meanwhile, 37% say retirement
is " too far away to address as a
main goal, " particularly in light of more
pressing financial responsibilities such
as saving for a first home or car purchase.
Fully 22% of respondents would prefer
to pay off their accumulated debts first,
before they start to save for retirement.
Stephen Williams, senior vice president
of wealth planning at BMO Wealth
Management, in Chicago, calls the survey
results troubling, all the more so because
Millennials at the start of their career have
a huge opportunity to leverage compound
savings and investment returns. As
Williams lays out, even modest savings
efforts early in one's wealth accumulation
44 PLANSPONSOR.com Decembe 2017r-January 2018
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PLANSPONSOR - December 2017/January 2018
Table of Contents for the Digital Edition of PLANSPONSOR - December 2017/January 2018
A QDIA in Transition
An Unseen Challenge
Alternative Assets in TDFs
Active or Passive Strategies
Boosting Employee Savings
Selective Mining
Future Shock
PLANSPONSOR - December 2017/January 2018 - Cover1
PLANSPONSOR - December 2017/January 2018 - Cover2
PLANSPONSOR - December 2017/January 2018 - 1
PLANSPONSOR - December 2017/January 2018 - 2
PLANSPONSOR - December 2017/January 2018 - 3
PLANSPONSOR - December 2017/January 2018 - 4
PLANSPONSOR - December 2017/January 2018 - 5
PLANSPONSOR - December 2017/January 2018 - 6
PLANSPONSOR - December 2017/January 2018 - 7
PLANSPONSOR - December 2017/January 2018 - 8
PLANSPONSOR - December 2017/January 2018 - 9
PLANSPONSOR - December 2017/January 2018 - 10
PLANSPONSOR - December 2017/January 2018 - 11
PLANSPONSOR - December 2017/January 2018 - 12
PLANSPONSOR - December 2017/January 2018 - 13
PLANSPONSOR - December 2017/January 2018 - 14
PLANSPONSOR - December 2017/January 2018 - 15
PLANSPONSOR - December 2017/January 2018 - 16
PLANSPONSOR - December 2017/January 2018 - 17
PLANSPONSOR - December 2017/January 2018 - 18
PLANSPONSOR - December 2017/January 2018 - 19
PLANSPONSOR - December 2017/January 2018 - A QDIA in Transition
PLANSPONSOR - December 2017/January 2018 - 21
PLANSPONSOR - December 2017/January 2018 - 22
PLANSPONSOR - December 2017/January 2018 - 23
PLANSPONSOR - December 2017/January 2018 - 24
PLANSPONSOR - December 2017/January 2018 - 25
PLANSPONSOR - December 2017/January 2018 - An Unseen Challenge
PLANSPONSOR - December 2017/January 2018 - 27
PLANSPONSOR - December 2017/January 2018 - 28
PLANSPONSOR - December 2017/January 2018 - 29
PLANSPONSOR - December 2017/January 2018 - 30
PLANSPONSOR - December 2017/January 2018 - 31
PLANSPONSOR - December 2017/January 2018 - Alternative Assets in TDFs
PLANSPONSOR - December 2017/January 2018 - 33
PLANSPONSOR - December 2017/January 2018 - Active or Passive Strategies
PLANSPONSOR - December 2017/January 2018 - 35
PLANSPONSOR - December 2017/January 2018 - Boosting Employee Savings
PLANSPONSOR - December 2017/January 2018 - 37
PLANSPONSOR - December 2017/January 2018 - 38
PLANSPONSOR - December 2017/January 2018 - 39
PLANSPONSOR - December 2017/January 2018 - 40
PLANSPONSOR - December 2017/January 2018 - 41
PLANSPONSOR - December 2017/January 2018 - Selective Mining
PLANSPONSOR - December 2017/January 2018 - 43
PLANSPONSOR - December 2017/January 2018 - Future Shock
PLANSPONSOR - December 2017/January 2018 - 45
PLANSPONSOR - December 2017/January 2018 - 46
PLANSPONSOR - December 2017/January 2018 - 47
PLANSPONSOR - December 2017/January 2018 - 48
PLANSPONSOR - December 2017/January 2018 - Cover3
PLANSPONSOR - December 2017/January 2018 - Cover4
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