Dive Brief:
- Millennials may be young, but they worry about the same issues as many of their older co-workers; a global survey found that when faced with mounting concerns over finances and retirement, six out of 10 millennials say they are willing to sacrifice pay for more secure retirement benefits.
- At the same time, however, Willis Towers Watson's Global Benefits Attitudes Survey found that millennials' appetite for forgoing some of their pay for reduced or more predictable health benefit costs has decreased over the last few years.
- According to the survey, the number of millennials willing to pay a higher amount for a guaranteed retirement benefit has increased from 42% in 2009 to 59% in 2016. For baby boomers, 66% say they would also be willing to sacrifice pay for more secure retirement benefits (up from 50% in 2009). However, only a third of millennials (32%) and boomers (34%) said they are willing to pay a higher amount for lower or more predictable health costs, a decline from 43% and 45%, respectively, from 2009.
Dive Insight:
If there's one thing industry observers gathered from this survey, it's that employees of all generations, including millennials, may be feeling vulnerable about their long-term financial security. It may be the case that employees are saying they have enough health coverage now and are reluctant to pay more.
Millennial workers, because of their financial obligations such as college debt, are not just trying to figure out how to make ends meet; they are beginning to realize their long-term financial risks. Most millennials want their employers to play an active role in encouraging them to better manage their finances. For employers, this looks like a great opportunity to help employees make smart financial decisions at pivotal moments through the use of personalized budgeting and projection tools and strategies. Recent surveys suggest that benefits technology has proven incredibly reliable for industry leaders who seek to streamline in enrollment processes across the board.
