On Monday, many employees enjoyed a day off to celebrate their hard work on Labor Day. Today, employers can help their teams celebrate their future plans to take it easy in retirement — it’s National 401(k) day! 💸
This “holiday” might not have cute puppies like Dog Day 🐶 or be as cheesy as Pizza Day 🍕 but it’s a good reminder to encourage your employees to plan for their future and make sure they’re on track.
So, why celebrate the 401(k)?
Millennials consider their retirement savings as incredibly important for their financial wellness, with 78 percent saying a 401(k) will be their largest or only source of retirement income. Additionally, 86 percent of employees consider a 401(k) a “must-have” benefit and expect support from their employer.¹
However, only about half (52 percent) of individuals participating in retirement savings plans believe they are “on track.”²
Your employee’s increasingly busy lives make it challenging to take time out and plan for the future, but 401(k) day might just be the reminder we all need.
While asking young people who might be struggling with daily bills, credit card debt and student loans to contribute a big chunk of their income to their 401(k) won’t be well received, there are smaller steps to take.
Confidence starts with education, and financial wellness programs (like LearnLux) that offer education & interactive tools as an employee benefit are a great way to start the conversation with your team.
When considering a financial wellness provider, look for programs that cover topics like:
- Retirement readiness strategies
- 401(k) Basics
- How to roll over an old 401(k) to your new employer
- IRA vs 401(k) - What's the difference?
- 401(k) Contribution Limits and Tax Advantages
- Should I pay off debt or save for retirement?
- 401(k) Investment Options and Vesting
- Leaving your Job, Access to 401(k) Funds, and Loans
So, however you plan to celebrate National 401(k) Day 🎉 with your employees, help them keep their sights set on the future and build the confidence they need to feel great about their personal finances. It'll help them retire on time, have peace of mind, and understand their benefits better, too.