You might not think so, but millennials are the ones who are zeroing in on retirement as a goal for their employees — more than Gen X business owners or even boomers.
According to a Nationwide survey, millennials could end up providing their employees with more support and encouragement in preparing for retirement than older business owners. In fact, they’re nearly twice as likely as the average owner say they will offer retirement benefits to their employees in the future (69% versus 36%).
Not only are they more aware of the importance of a workplace retirement plan for themselves, with 53% saying so compared with just 39% of boomers, they’re more likely — at 57% — to think that it’s their responsibility to help their workers save for retirement. Just 31% of boomer business owners and 44% of Gen X bosses think so.
“Our research shows that millennial business owners understand both the importance of saving for retirement and the need for workplace retirement benefits,” John Carter, president of retirement plans for Nationwide, says in a statement.
Carter adds, “Millennials grew up during the Great Recession a decade ago, which significantly impacted how the generation spends, saves and manages their money and businesses. Now, they are planning ahead and taking actions that could help them and their employees achieve financial security in retirement.”
It doesn’t hurt that the economy has been booming, with 61% of business owners overall saying they expect better sales this year; millennials are even more optimistic, with 64% of that age group predicting a good year. And 51% of millennials are aware of the effectiveness of a retirement plan as a recruiting tool in a tight job market; among Gen X and boomer business owners, just 44% and 31%, respectively, feel that it “helps them attract and retain the best talent.”
Where does tax reform fit in? Although 49% of business owners overall aren’t planning on doing anything to company retirement plans because of the new law, that too depends on the age of the business owner, with 32% of millennial bosses increasing retirement contributions. Just 18% of business owners overall intend to do so. In addition, 25% of millennial business owners who plan on providing retirement benefits say it’s because of the tax reform law, compared with only 19% of all business owners.
Although it’s a long way off, millennial business owners are also more likely to have an exit plan for their business, with 23% having already identified a third party to whom they plan to sell their business before they retire. Just 10% of owners overall are that far along in their planning.
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