Don't HR Alone #45 - Retirement Plan Participation by Generation
Wells Fargo: Millennials Make Greatest Gains In 401(K) Plan Participation
Rates of saving for retirement and investing habits differ from one generation to the next, according to a recent analysis of four million people who participate in 401(k) plans provided by Wells Fargo. Retirement plan data for Boomers, Generation X, and millennials reveal ways each generation can learn from the others when it comes to saving for retirement. The full analysis can be found in the Wells Fargo 2017 Driving Plan Health report.
Millennials show 13% gain in participation in past five years
Millennials have demonstrated the biggest gains in the percentage of those participating in their 401(k) plans over the last five years, with an increase of 13.3%. They’re also the most-diversified generation, with 83% meeting Wells Fargo’s minimum diversification goal*. This diversification number drops to 80% for Gen X and 77% for Boomers. In addition, 30% of millennials contribute enough to maximize their full employer match when one is offered. This number falls to 27% for Gen X and 25% for Boomers.
“This engagement among millennials is encouraging because the sooner they get started, the more prepared they will be for retirement — they have the power of time to help grow their nest egg,” said Mel Hooker, director of relat