Long-term goal setting is tough for anyone but that’s especially true for the youngest employees in our organizations. Reports vary on average savings rates for young employees — from 7% to 14% depending on your source — but the bigger picture is clear: by and large, Americans aren’t on track to have sufficient savings when it’s time to retire. Those who are best positioned to right their ships are our youngest employees — since they can benefit most from good old compound interest.
So what can we do to encourage more of our young workers to participate in their 401(k)s? There are some key elements of the plan design — company match, speedy vesting, automatic enrollment, and enrollment incentives — that can help. But it is equally important to create a company culture that is focused on financial wellness. And communications play a large role in that.