PLANSPONSOR - January - February 2024 - 15

workforce continues to grow and evolve. "
The Gen Z cohort was born from
1997 through 2012.
Respondents from younger generations
also said seeking support from their
employer is critical to their retirement
savings. Voya found that 69% of Gen
Zers and 65% of Millennials-vs. 48%
of Gen Xers and 34% of Baby Boomers-
projected they would use digital tools
to help them understand their overall
spending and savings picture this year.
In
addition,
among
employed
Americans, Millennials were significantly
more likely than were other generations
to say they would use workplace financial
advice services, including managed
accounts, to better understand their
overall savings picture this year.
According to Sette, with younger
generations eager to receive support in the
workplace to optimize their savings and
TIDBITS
How Employees Could Be 'Optimal' Savers
retirement
PLAN SPONSORS may be able to help
improve employees'
savings
outcomes by telling them about " optimal "
behavioral traits, research from Goldman
Sachs Asset Management found.
Four behaviors-optimism, reward
Optimism
Individuals with
high optimism more
often take proactive
actions such as setting
up a personalized
retirement plan and
actively changing
investments in a
volatile market. They
tend to have high
retirement savings.
vs. risk orientation, future orientation and
financial literacy-can improve retirement
savings outcomes and should be encouraged,
via communication campaigns,
educational
initiatives and personalized
tools, GSAM says. Integrating insights
Financial Literacy
The financially literate
tend to review retirement
savings periodically,
have emergency
savings, take defensive
action during
market events, report
less stress managing
finances and favor
guaranteed retirement
income.
Source: Goldman Sachs Asset Management, " Retirement Mindset Matters "
... 75% of 2,100 federal student loan
borrowers anticipated that this past
October's resumption of student loan
payments would hurt their ability to
save for retirement.
workplace benefits, now is an opportune
time for employers to help.
" Offering more integrated benefits
coupled with an effective communication
strategy can provide a great opportunity for
continued support for younger employees, "
Sette says. " While the Millennial and Gen
Z generations still have years for catch-up
savings for retirement, our research underscores
that the realities of having to prioritize
spending for today make saving for
longer-term savings goals like retirement
a formidable challenge. "
As a result, she says, more employers
today offer holistic financial wellness
solutions to support their employee base,
including: HSAs to offset the burden of
medical costs, student loan debt support,
and tools to build emergency savings.
Voya's
survey was
conducted last
October 2 and 3 and included responses
from 1,005 adults ages 18 and up; it
featured 467 Americans who work full or
part time. -Remy Samuels
based on the traits into plan design and
financial planning services could help
motivate individual savers by appealing to
their preferences. While each trait contributes
to saving, high optimism may have the
most positive impact, the research showed.
Reward vs. Risk
People with a rewardorientation
tend to take
proactive steps with
their saving-e.g.,
setting up a personalized
financial plan
and accessing financial
help. They report
less stress managing
finances and have
more savings.
Future Orientation
Those with high future
orientation tend to
have good saving
behaviors and be more
financially prepared
for retirement. They
likely have emergency
savings, prioritize retirement
planning, and
engage in proactive
financial behaviors.
PLANSPONSOR.COM January - February 2024 15
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