PLANSPONSOR - November - December 2023 - 4

PARTICIPANT ANALYSIS
Age Matters
E
mployees prioritize and value
certain benefits offered by
differently
employers
based
their
on
their age and life stage, according to the
2022 PLANSPONSOR Participant Survey,
fielded last fall.
When asked what are the five most
important employer-sponsored benefits,
retirement plan participants as a group
ranked health insurance, a retirement
savings plan, health-care expense reimbursement
accounts, career development
and group insurance to cover risk.
Yet, the findings, when broken
down by age, make it clear that those in
the youngest cohort and those in the two
oldest cohorts perceived value in benefits
quite differently. Retirement savings and
health insurance reveal the largest value
gaps between ages.
For example, of employees age 70 or
older, 94.7% value retirement savings as
a " most important benefit " vs. 61.1% of
those 18 through 22. Retirement plans,
pensions and savings options are crucial to
older employees, and younger employees
may consider retirement too distant to
be a top concern. The survey found that
younger employees prioritize more immediate
financial goals -e.g., college savings
plans and debt management. Employees
60 through 69 rate saving for college
at 14.1%, and those 70 and up rate debt
management at 5.3%.
Those 18 through 22 rate the importance
of employer health insurance at
68.6%, but 60- through 69-year-olds rate
it at 93.8%. The youngest demographic is
still potentially covered by their parent's
insurance if that is available to them. And
the oldest have access to Medicare. In
between, workers appear to increasingly
see the value of such programs.
Employers might
consider generational
preferences when designing their
benefits packages, to attract and retain
top talent. Additionally, experts agree
that a flexible benefits program and
4 PLANSPONSOR.COM November - December 2023
good employer communication allowing
employees to choose the benefits that
align with their individual needs can help
address the diverse preferences of a multigenerational
workforce.
" Plan sponsors can take actions
that workers will appreciate in terms of
managing their finances, " notes Lorna
Sabbia, head of retirement and personal
wealth solutions at Bank of America.
Ninety-two percent of employers that offer
resources to manage financial well-being
saw improvement in employee satisfaction,
says the " Bank of America 2023
Workplace Benefits Report. "
" Companies that offer programs and
resources that support employees' immediate
needs and overall well-being stand
out as employers of choice, " Sabbia says.
-Judy Faust Hartnett
Most Important Benefits an Employer Can Offer Employees
RESPONDENTS COULD CHOOSE UP TO 5
Health insurance
Retirement savings plan
Health care expense reimbursement accounts
Help with career development
Group insurance to cover unexpected risk
Subsidized activities connected to physical and mental well-being
Tools designed to improve personal finances
Support with creating/building emergency savings accounts
College saving plan
Access to debt management/counseling
Benefits With the Largest Value Gap Between Ages
MOST IMPORTANT
Retirement savings plan
Health insurance
Group insurance for unexpected risk
College saving plan
Access to debt management/counseling
94.7% 70 or older
93.8% 60 -69
64.1% 60 -69
37.8% 18 -22
34.6% 18 -22
Source: 2022 PLANSPONSOR Participant Survey
80.6%
69.9%
43.7%
41.3%
37.8%
31.1%
30.3%
29.7%
28.9%
26.6%
LEAST IMPORTANT
61.1% 18 -22
68.6% 18 -22
29.7% 18 -22
14.1% 60 -69
5.3% 70 or older
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