ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

How Employers Are Addressing Gen Z’s Growing Financial Needs and Preferences

Gen Z values long-term stability; employers tap into this with tailored benefits, student loan solutions, and financial empowerment.
PUBLISHED MAR 5, 2024
Cover Image Source: Students arrive for their graduation ceremony at the Royal Festival Hall | Getty Images | Photo by Dan Kitwood
Cover Image Source: Students arrive for their graduation ceremony at the Royal Festival Hall | Getty Images | Photo by Dan Kitwood

When it comes to financial planning, Gen Z is emerging as a cohort with a distinct focus on long-term stability, including a keen interest in financial literacy, savings, and a strong inclination towards employer-backed retirement benefits. The Transamerica Institute reports that members of Gen Z foresee spending approximately 30 years in retirement, underscoring their forward-looking financial mindset. However, a significant 57% within this demographic believe they should be saving more for their retirement.

UCLA students and supporters demonstrate outside the UC Board of Regents meeting | Getty Images | Photo by David McNew
Image Source: UCLA students and supporters demonstrate outside the UC Board of Regents meeting | Getty Images | Photo by David McNew

Considering Gen Z's interest in employer-provided retirement benefits, employers can capitalize on this inclination to deepen their commitment to long-term financial well-being. Transamerica's findings show that two-thirds of Gen Z members are already engaged in savings through employer-sponsored retirement plans or alternative avenues. Moreover, a substantial 70% express interest in customizing their benefits, revealing an opportunity for employers to align offerings with these preferences.

Yet, despite their interest, only 36% of Gen Z participants feel their opinions matter concerning employer benefits, and merely 38% believe the benefits are worth the cost.

Cover Image Source: Pexels | cottonbro studio
Image Source: Pexels | cotton-bro studio

A major concern for Gen Z is student loan debt. A survey reveals that a considerable portion of this demographic seeking employer assistance with their student loans. Recognizing this trend, the SECURE 2.0 Act, enacted in December 2022, offers a potential solution. Employers can now provide matching contributions to employees' retirement accounts based on qualified student loan payments.

While not mandatory, this benefit presents an attractive option for employers aiming to distinguish themselves and attract top talent in a competitive market.

Student Studying for her Exam | Pexels | Photo by Pixabay
Image Source: Pexels | Photo by Pixabay

Abbott Laboratories has implemented the Freedom 2 Save program, an innovative approach to address student loan debt. Employees qualifying for the company's 401(k) and contributing 2% of their pay towards student loans receive an equivalent amount to Abbott's 5% 401(k) match, channeled directly into their retirement accounts. This unique initiative recognizes the changing priorities of new graduates.

Fidelity has also stepped into the realm of student loan benefits, unveiling "Student Debt Retirement," inspired by SECURE 2.0. This offering allows employers to match employees' student loan payments with contributions to their retirement plans, adding another layer to the financial support landscape.

As of the latest report, student loan debt in the United States stands at a staggering $1.727 trillion. Notably, 2023 marked a significant milestone as it witnessed the first-ever annual decline in student loan debt. The federal loan balance alone contributes substantially, reaching $1.602 trillion and making up a dominant 92.8% of the entire student loan debt landscape.

A substantial 43.2 million borrowers are shouldering federal student loan debt burdens, with an average balance of $37,088. When factoring in private loan debt, the total average balance escalates to an estimated $39,981. Projections for 2024 suggest that the trend of declining student loan debt will persist, offering a glimmer of relief to borrowers

Image Source: Photo by Andrea Piacquadio | Pexels
Image Source: Photo by Andrea Piacquadio | Pexels

Bill Gimbel, President of LaSalle Benefits, suggests providing access to a financial planner and online financial services and facilitating loan payments through automatic payroll deductions. These offerings cater to Gen Z's desire for holistic financial support beyond traditional benefits.

"It is vital to understand their investing decisions and to provide them with the educational tools to prepare for those decisions," said FINRA Foundation President Gerri Walsh.

MORE ON MARKET REALIST
The founder of Chirp scored a creative deal with Lori Greiner after much deliberation.
16 hours ago
“Read the room, Ken, not the time to joke when his dream just got crushed,” a viewer slammed.
17 hours ago
The guest claimed that her father worked on the film and was gifted the item by the camera crew.
18 hours ago
The worst part was that Chum never even called in an expert to take a look at the guitar.
19 hours ago
The guest thought that her items were worth $100 but was not expecting them to be in the thousands.
20 hours ago
She was stunned by what she saw and the amount of worms that must have been in that bag of nuts.
1 day ago
The company had an innovative product and the sales figures to back up their valuation.
1 day ago
A lot of people gathered to hear the appraisal of the item somewhat related to the notorious killer.
1 day ago
Fans were quick to point out his blunders that cost him the big prize during the round.
1 day ago
The contestant's answer did not make a lot of sense, and Harvey didn't let the opportunity slip by.
1 day ago
Lydon B. Johnson made the piece iconic for being the first ever President to sport a 36mm Day-Date decorated with a silver dial. 
1 day ago
“I don’t understand how people are not paying attention to the last few playings of the game," a fan criticized.
1 day ago
Several consumers have reportedly been affected by the bacteria and 21 have been hospitalized with severe complications.
2 days ago
Mr. Wonderful asked for a ridiculous part of the business at first before changing his offer.
2 days ago
Chum Lee had the cuffs on in front of a customer as Rick Harrison walked out of the store.
2 days ago
Other similar incidents have also been reported regarding food from big ticket retailers.
3 days ago
“Can I look that way?” Cheryl requested if she could close her eyes before the big reveal.
3 days ago
She claimed that her uncle used to accompany Monroe on the piano and even drove her once.
3 days ago
The two did not agree on a deal the first time over $50, but things worked out in the end.
4 days ago
The item belonged to the guest's grandmother who wore it at her own and her son's weddings.
4 days ago