Dive Brief:
- Millennials may be saving more than their Baby Boomer parents, but unfortunately many are underestimating how much they will need to retire, according to Employee Benefit Advisor (EBA).
- Citing a recent study from Bankrate.com, more than half of millennials are saving at least 5% of their income.
- Problem is, according to a Harris Poll study commissioned by the Million Dollar Round Table (MDRT), on average millennials expect to retire at the relatively young age of 62, and they won't have enough money to reach that objective, according to the article.
Dive Insight:
Greg McBride, Bankrate.com's chief financial analyst, told EBA that millennials face roadblocks to retirement savings that are in some ways specific to their generation, especially large student loan balances.
Brenton Harrison, a member of MDRT and financial adviser for the Henderson Financial Group, says employers must educate millennials on how to plan their finances to ensure that they can reach all of their financial milestones.
Jack VanDerhei, a research director for the Employee Benefit Research Institute, told EBA another way to help is for employers to automatically enroll workers in retirement plans from day one, because if they start "from the very first pay check, you won't miss it because you never saw it in the first place.