Building a 401(k) Plan for Every Generation

Employees’ financial priorities may change in their 20s, 40s, and 60s, but thoughtful plan design and communication that meet them where they are can encourage retirement readiness at every age

As careers progress, financial obligations often multiply. Student loans become mortgages. Mortgages lead to childcare. Childcare becomes college tuition. Later, many employees are supporting aging parents while preparing for retirement themselves. A well-designed retirement plan helps employees keep saving as their life priorities change.

Meeting Employees Where They Are
Where employees are in life often shapes the financial decisions they make. Understanding what matters most to each generation can help you communicate the value of your retirement plan more effectively.

Generation Z | The first ten years of savings may be the most valuable
Many Gen Z employees are just beginning their careers and may be focused on student loan payments, building emergency savings, or establishing healthy financial habits. With an 8% average annual rate of return, contributing just $200 per month starting at age 25 could grow to approximately $824,000 by age 67, compared with approximately $355,000 if they begin saving at age 35. Starting just 10 years earlier could result in nearly $470,000 more by retirement through the power of compounding.

Use infographics, videos, and calculators to show Gen Z that time is their greatest savings advantage.

Millennials | Life’s most expensive years
Millennials are often balancing homeownership, raising children, and paying down debt, making it difficult to prioritize retirement savings. Show them how employer matching, automatic 1% annual increases, and small, consistent contributions can make saving manageable.

Encourage employees to work toward saving 10%–15% of their income for retirement.

Generation X | Retirement suddenly feels real
Generation X is often juggling peak earning years while supporting children, aging parents, or both. Many are asking the same question: “Am I actually on track?”

Retirement readiness tools, personalized projections, and in-person education can replace uncertainty with confidence. Contact us for more information.

Baby Boomers | From accumulation to income

At this stage, the conversation shifts.

Employees nearing retirement are focused on turning decades of savings into reliable retirement income. They begin asking questions about Social Security timing, healthcare costs, withdrawal strategies, and how long their savings might last.

Education around distribution options and retirement income planning can help employees approach this major life transition with confidence.

Great plan design helps to remove friction
The strongest retirement plans don’t depend on employee motivation; they depend on behavioral science. Research has consistently shown that automatic features dramatically increase participation because they remove inertia from the enrollment process.

Consider whether your plan includes:

• Automatic enrollment
• Automatic annual contribution increases
• Employer matching contributions
• Retirement income education
• Personalized planning tools
• Financial wellness resources

Good plan design helps employees make good decisions, even when retirement isn’t their top priority.

Communicating across generations
A new hire just entering the workforce asks different questions than an employee approaching retirement. Young employees may need encouragement to start saving despite competing financial priorities, while employees nearing retirement often want to better understand how to turn their retirement savings into steady income.

Tailoring education to address the needs and goals of different generations makes retirement plan communication more relevant, improves employee engagement, and encourages participation among employees of all ages.

Ready to get started?

Now is a good time to evaluate whether your retirement plan and communication strategy can effectively support employees across every generation.

Our team can help identify opportunities to strengthen participation, improve employee engagement, and build a retirement plan that optimally serves the needs of a multigenerational workforce. Reach out to schedule a call with us today.