Advanced Search
MyIDEAS: Login to save this paper or follow this series

How Can Employers Encourage Young Workers to Save for Retirement?

Contents:

Author Info

  • Nicole Votolato Montgomery
  • Lisa R. Szykman
  • Julie R. Agnew
Registered author(s):

    Abstract

    Workers under age 35 have the lowest 401(k) participation of any age group. Failing to save for retirement at a young age means missing out on compounded investment earnings that can substantially ease the burden of building a nest egg. The reasons young workers save less for retirement range from college loan repayments and low starting salaries to a desire to save for a house. Another reason is deeply rooted in psychology: when an event such as retirement is far from the future, people tend to distance themselves from it and think about it abstractly. In visual terms, it is more difficult to see the details of a photograph when one is far away - just as it is difficult for young adults to perceive old age. It will become more concrete only as they move closer. For young workers, then, retirement security lacks the urgency older workers feel. This brief reflects preliminary results from research positing that young adults' distance to retirement may discourage them from saving, and it tests what types of communication tactics might be most effective in promoting saving.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://crr.bc.edu/briefs/how-can-employers-encourage-young-workers-to-save-for-retirement/
    Download Restriction: no

    Bibliographic Info

    Paper provided by Center for Retirement Research in its series Issues in Brief with number ib2012-7.

    as in new window
    Length: 12 pages
    Date of creation: Mar 2012
    Date of revision: Mar 2012
    Handle: RePEc:crr:issbrf:ib2012-7

    Contact details of provider:
    Postal: Hovey House, 140 Commonwealth Avenue, Chestnut Hill, MA 02467
    Phone: (617) 552-1762
    Fax: (617) 552-0191
    Email:
    Web page: http://crr.bc.edu/
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:crr:issbrf:ib2012-7. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Grzybowski) or (Christopher F Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.