What’s Next in Retirement: Bridging the Generational Divide

Today’s workforce is more generationally diverse than ever, spanning Baby Boomers, Gen X, Millennials, Gen Z and a few Silent Generation members. With Generation Alpha (born between 2010 and now) expected to enter the full-time, salaried workforce in about five years, it’s time to plan for the future.

With such a large age span in the workforce, one-size-fits-all benefits packages are no longer effective, especially regarding retirement. Plan sponsors could design retirement plans that work for employees of all ages to foster loyalty. This is an excellent opportunity for corporate advisors to guide plan sponsors toward a forward-thinking retirement benefits strategy.

Here are some strategies to discuss with plan sponsor clients:

• Flexible, customized retirement benefits

  • Offer several options so employees can tailor their selections based on personal needs and goals, enhancing perceived value. According to the U.S. Bureau of Labor Statistics, 12% of private sector workers (with access to a retirement plan) had access to a defined contribution plan and a defined benefit plan in 2022.

• Consider new features from Secure 2.0

  • The Secure 2.0 Act has made features like emergency savings programs, auto-enrollment and student loan 401(k) matches available to employers. Younger employees could significantly benefit from these new options.

• Don’t overlook the importance of financial literacy and education

  • Provide financial wellness and education programs, from budgeting advice for Gen Z and Millennials to retirement income planning for Baby Boomers and Gen X.

  • Offer targeted workshops on essential topics like HSAs, 401(k) options and investment strategies.

• Leveraging technology and AI

  • Explore AI-driven platforms that can provide employees with personalized recommendations and advice.

  • Offer mobile-friendly retirement benefits portals to enhance accessibility, transparency and employee engagement.