PLANSPONSOR - May/June 2024 - 4

PARTICIPANT ANALYSIS
Age-Driven Insights
A
ccording to the 2023 PLANSPONSOR
Participant Survey,
employees demonstrate variations
in their preference and valuation
of workplace benefits based on age. The
two trade-offs examined here highlight a
divergence in priorities across different
age groups.
For example, 60% of respondents
age 67 or older-being close to retirement
age-would prefer a $100 monthly
increase in company 401(k) contributions
to a $100 monthly reduction in the cost of
health insurance.
But respondents age 18 through 39
chose the reduction in their insurance
premiums. Firstly,
younger employees
may prioritize immediate financial relief
over long-term savings, especially if they
perceive
health
insurance
premiums
as a more currently necessary expense.
Younger individuals may feel less urgency
to contribute to their retirement savings
compared with older employees. They may
also perceive a greater financial freedom
from having lower health insurance costs,
as this would directly affect their monthly
budget and provide financial relief now.
Moreover, younger employees may
have competing financial priorities such
as student loan repayment, as indicated by
respondents in the second trade-off. The
18- through 39-year-olds were much more
likely than their older colleagues to choose
$1,000 annually put toward their student
debt than a contribution to a health
savings account-for several reasons.
Individuals in this age group are more
apt to have student loan debt from pursuing
higher education or skills training. Paying
down student debt can alleviate stress and
reduce their overall debt burden, which, for
younger employees, may be a more immediate
concern vs. saving in an HSA. In
general,
the preference for contributions
toward student loan debt reflect the financial
realities of younger employees who are
navigating the challenges of managing
debt while striving to achieve financial
stability. -Judy Faust Hartnett
4 PLANSPONSOR.COM May - June 2024
Age 40 - 49
Age 50 - 59
Age 60 - 66
Overall
Female
Male
Age 18 - 22
Age 23 - 29
Age 30 - 39
47%
51%
43%
53%
55%
47%
44%
42%
45%
Age 67 or older 40%
Lower Premiums vs. Larger Employer Contributions
$100 reduction in monthly
health insurance premiums, or
$100 increase in monthly
401(k) plan contributions
53%
49%
57%
47%
45%
53%
56%
58%
55%
60%
Help With Student Debt vs. Help With Health Savings
$1,000 annual contribution to
paying down student debt
Overall
Female
Male
Age 18 - 22
Age 23 - 29
Age 30 - 39
Age 40 - 49
Age 50 - 59
Age 60 - 66
37%
37%
37%
47%
47%
46%
29%
26%
31%
Age 67 or older 0%
Source: 2023 PLANSPONSOR Participant Survey
$1,000 annual contribution to
a health savings account
63%
63%
63%
53%
53%
54%
71%
74%
69%
100%

http://www.PLANSPONSOR.COM

PLANSPONSOR - May/June 2024

Table of Contents for the Digital Edition of PLANSPONSOR - May/June 2024

Insights
The Proactive Adviser
Mastering the In-Plan Annuities
2024 Plan Sponsor of the Year Finalists
Why a Second Committee?
Savings Need to Last
DOL Finalizes QPAM Exemption
Filing a VFC Application?
Careful Consideration
PLANSPONSOR - May/June 2024 - Cover1
PLANSPONSOR - May/June 2024 - FC1
PLANSPONSOR - May/June 2024 - FC2
PLANSPONSOR - May/June 2024 - Cover2
PLANSPONSOR - May/June 2024 - 1
PLANSPONSOR - May/June 2024 - Insights
PLANSPONSOR - May/June 2024 - 3
PLANSPONSOR - May/June 2024 - 4
PLANSPONSOR - May/June 2024 - 5
PLANSPONSOR - May/June 2024 - 6
PLANSPONSOR - May/June 2024 - 7
PLANSPONSOR - May/June 2024 - 8
PLANSPONSOR - May/June 2024 - 9
PLANSPONSOR - May/June 2024 - 10
PLANSPONSOR - May/June 2024 - 11
PLANSPONSOR - May/June 2024 - 12
PLANSPONSOR - May/June 2024 - 13
PLANSPONSOR - May/June 2024 - 14
PLANSPONSOR - May/June 2024 - 15
PLANSPONSOR - May/June 2024 - 16
PLANSPONSOR - May/June 2024 - 17
PLANSPONSOR - May/June 2024 - The Proactive Adviser
PLANSPONSOR - May/June 2024 - 19
PLANSPONSOR - May/June 2024 - 20
PLANSPONSOR - May/June 2024 - 21
PLANSPONSOR - May/June 2024 - Mastering the In-Plan Annuities
PLANSPONSOR - May/June 2024 - 23
PLANSPONSOR - May/June 2024 - 24
PLANSPONSOR - May/June 2024 - 25
PLANSPONSOR - May/June 2024 - 2024 Plan Sponsor of the Year Finalists
PLANSPONSOR - May/June 2024 - 27
PLANSPONSOR - May/June 2024 - 28
PLANSPONSOR - May/June 2024 - 29
PLANSPONSOR - May/June 2024 - 30
PLANSPONSOR - May/June 2024 - 31
PLANSPONSOR - May/June 2024 - 32
PLANSPONSOR - May/June 2024 - 33
PLANSPONSOR - May/June 2024 - Why a Second Committee?
PLANSPONSOR - May/June 2024 - 35
PLANSPONSOR - May/June 2024 - Savings Need to Last
PLANSPONSOR - May/June 2024 - 37
PLANSPONSOR - May/June 2024 - DOL Finalizes QPAM Exemption
PLANSPONSOR - May/June 2024 - Filing a VFC Application?
PLANSPONSOR - May/June 2024 - Careful Consideration
PLANSPONSOR - May/June 2024 - Cover3
PLANSPONSOR - May/June 2024 - Cover4
https://www.plansponsordigital.com/plansponsor/july_august_2024
https://www.plansponsordigital.com/plansponsor/may_june_2024
https://www.plansponsordigital.com/plansponsor/march_april_2024
https://www.plansponsordigital.com/plansponsor/january_february_2024
https://www.plansponsordigital.com/plansponsor/november_december_2023
https://www.plansponsordigital.com/plansponsor/september_october_2023
https://www.plansponsordigital.com/plansponsor/july_august_2023
https://www.plansponsordigital.com/plansponsor/excellenceawards_2023
https://www.plansponsordigital.com/plansponsor/may_june_2023
https://www.plansponsordigital.com/plansponsor/march_april_2023
https://www.plansponsordigital.com/plansponsor/december_2022_february_2023
https://www.plansponsordigital.com/plansponsor/october_november_2022
https://www.plansponsordigital.com/plansponsor/august_september_2022
https://www.plansponsordigital.com/plansponsor/june_july_2022
https://www.plansponsordigital.com/plansponsor/excellenceawards_2022
https://www.plansponsordigital.com/plansponsor/april_may_2022
https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
https://www.plansponsordigital.com/plansponsor/august-september_2020
https://www.plansponsordigital.com/plansponsor/june-july_2020
https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
https://www.plansponsordigital.com/plansponsor/august-september_2018
https://www.plansponsordigital.com/plansponsor/june-july_2018
https://www.plansponsordigital.com/plansponsor/april-may_2018
https://www.plansponsordigital.com/plansponsor/february-march_2018
https://www.plansponsordigital.com/plansponsor/december_2017-january_2018
https://www.plansponsordigital.com/plansponsor/november_december_2017
https://www.plansponsordigital.com/plansponsor/october_2017
https://www.plansponsordigital.com/plansponsor/september_2017
https://www.nxtbookmedia.com