FSA Friday - 6/1/18 - Millennials, health benefits and the future

Millennials are a hot topic among employers, and for good reason — they currently make up the largest chunk of today's workforce. With the oldest millennials now approaching their mid-30s, taking over management positions, and the youngest just graduating college, they're present in all areas of the workforce. And they're proving to be pretty skilled at preparing for their present -- and future -- well being.

In this week's FSA Friday, we take a look at this heavily discussed generation, with two articles covering this generation's approach to healthcare, benefits and retirement. (Hint: They're doing it better than most.)

Are millennials the best retirement savers? - Joel Kranc, BenefitsPRO

According to the Report on the Economic Well-Being of U.S. Households in 2017 released by the Federal Reserve, 74% of adults said they were either doing okay or living comfortably in 2017. But less than 40% of non-retired adults think their retirement savings plan is on track.

(Alarming side note: Nearly 25% of non-retired Americans say they have no retirement savings or pension at all.)

But millennials have a different plan. In the J.D. Power 2018 Group Retirement Satisfaction Study, we learn millennials are the most likely of all demographics to set retirement goals and have the highest amount of savings (relative to their career length) in group retirement plans.

In arguably the most interesting fact -- 51% of millennials have set specific retirement goals, compared with 44% of Gen X and Boomer participants. And of that 51%, most say they're on track to meet their goals.

How do millennials make benefits enrollment decisions? - Jennifer Beck, BenefitsPRO

It seems like millennials are more aware of their benefits and well-being. But what exactly do they want from their benefits? And how do they go about deciding which benefits to choose?

In a separate BenefitsPRO article, we learn that Russell Research was commissioned to find the answers to these (and other) questions about employer benefits. Millennials evaluate available benefits by asking themselves three primary questions:

  1. "What essential benefits do I need?"
  2. "Which non-essential options am I interested in?"
  3. "Based on my budget, which of these benefits can I afford?"

Also, they're more cost-conscious than other generations when it comes to benefits. While roughly half of this group keeps budget front of mind when selecting benefits, only 42% of older generations do the same.

The article also dives into how millennials are protection-minded, and how employers will probably need to adapt their benefit packages (and tools to manage them) in order to offer real, relevant value to millennials.

FSA Friday is a weekly roundup of the latest topics, tips and headlines to keep you updated on all things flex spending. It appears every Friday, exclusively on the exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram and Twitter.

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