A recent survey from J.P. Morgan reveals that workers under the age of 30 want their employer to make financial decisions about their retirement savings! According to the survey, 69 percent of this younger group identify themselves as “do-it-for-me” investors, compared with 56 percent of those over age 30. And a whopping 82 percent want their employer to actually make their investment decisions for them (versus 73% for those over age 30)!
The survey also found that younger workers favor so-called automatic features such as automatic enrollment and automatic escalation, as well as target-date funds. These findings point to a major shift from the days when employees wanted more choice and control over their investments. Rather, Millennials are showing a growing preference for professionally constructed and easy-to-use investment solutions designed with their needs in mind.
Plan sponsors can help improve their employees’ retirement readiness by thoughtfully adopting plan design features that make sense for their employees and coupling that with a strong education program.