PLANSPONSOR - October 2017 - 14

Upfront
Millennials
Face
Gender
Challenges
MILLENNIALS in the work force value
flexibility and a sense of purpose at
work over base salary or benefits, and
they want access to investments that are
socially and environmentally conscious.
So finds new research from Wells Fargo
Asset Management (WFAM), which also
reveals that the youngest generation of
workers is not all that different from the
older generations, at least in one crucially
important way.
" Among all full-time employed
Millennials, just as we see with the
older generations, women are earning
a median personal income that already
significantly trails that of men, and they
are saving less on a monthly basis, " noted
Kristi Mitchem, CEO of WFAM, speaking
at a press event in New York City. " So it
seems that we have to draw the troubling
conclusion that, while Millennials are
more aware about the gender pay gap
issue, a solution is still not forthcoming. "
For men in the survey sample of
Millennials, which, Mitchem noted, does
in fact skew more toward the affluent than
the general U.S. population, the median
income is $63,000 and the median
monthly savings for retirement is $500.
For women in this generation, the figures
are just $43,000 and $200, respectively.
" These figures are striking, and they
surprise a lot of people who identify the
Millennial generation with an idea of
being much more socially progressive
and concerned with equality, " Mitchem
explained. " But what we see clearly is that
Millennials are in fact following in the
footsteps of previous generations in terms
of gender pay equity challenges. It makes
sense because these are major, systematic
challenges that have existed for some
time. This fact has a direct impact on
the work we should be doing as an asset
manager and retirement plan provider. "
The survey data shows men are
" more likely to say they are in their
preferred career and are more confident
in their financial security than women, "
but the picture changes positively for
Millennial women who say they have
" taken greater action and control [of]
their finances. " There is some evidence
that more affluent Millennial women are
more financially engaged and confident
in their working future simply as a result
of having more money to invest in the
first place, but looking across the income
levels in the sample, this factor does not
explain everything.
" We also see there are important
distinctions in confidence and positive
investing decisions when we look
14 PLANSPONSOR.com October 2017 Art by Melinda Beck
at women who say they compartmentalize
the financial portion of their lives
versus those women who say they engage
honestly, directly and regularly with their
financial challenges, " Mitchem said.
" The same is true to a large extent for
men, as well, and across the generations.
Success is not always about making
the most money-it's about engaging
directly with your finances and being
willing to sit down and make a plan. "
Fred Axsater, executive vice
president and head of strategic business
segments for Wells Fargo Asset
Management, echoed many of Mitchem's
arguments. " The percentage of total
Millennials who are not investing in
the market today is far too large, " he
concluded. " We must address this challenge
straight on by showing the value of
saving and investing for the long term,
both in personal terms and in societal
terms. " -John Manganaro
http://www.PLANSPONSOR.com
PLANSPONSOR - October 2017

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