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Retirement Plan Providers to Appeal to Millennial Business Owners

by | 4 minute read

Despite numerous stereotypes about millennials, a new survey by Nationwide reveals they could be more prepared and supportive of planning for the future than Gen X or baby boomer business owners.

According to the study, millennial business owners are nearly twice
as likely as the average owner to offer retirement benefits to their
employees in the future (69% versus 36%).

They also recognize the
importance of a workplace saving plan for their own retirement savings
with 53% of millennials stating so compared to only 39% for boomers.
Additionally, millennials are more likely to feel it is their
responsibility to help their employees save for retirement (57%) versus
less than a third (31%) of boomers and 44 percent of Gen X business
owners.

According to AudienceSCAN, 47% of Business Starters
fall into the potentially millennial age range of 22 to 37 years of
age. Before this group makes a purchase, 51% like to use search engines
to do some research on a product they’re considering, most likely via
Google, which is the preferred search engine of 93% of this consumer
group. About 36% have used a mobile device to watch a video about a
product they were considering within the past six months as well.
Luckily for advertisers, this group is 113% more likely than other
adults to find advertising on their mobile phones useful to them.

“Our
research shows that millennial business owners understand both the
importance of saving for retirement and the need for workplace
retirement benefits,” said John Carter,
president of retirement plans for Nationwide. “Millennials grew up
during the Great Recession a decade ago, which significantly impacted
how the generation spends, saves and manages their money and businesses.
Now, they are planning ahead and taking actions that could help them
and their employees achieve financial security in retirement.”

Economic Growth Helps

Most
business owners (61%) report they are expecting better sales this year,
including 64% of millennial business owners. With unemployment
extremely low, 51% of millennial business owners agree that offering a
retirement plan helps them attract and retain the best talent, compared
to 44% and 31% for Gen X and boomers, respectively.

Even though
roughly half (49%) of all business owners will not take any action with
their retirement benefits due to tax reform, attitudes on the impact of
tax reform as well as planned actions vary across generations.

Nearly
a third (32%) of millennial business owners will increase retirement
contributions due to tax reform, compared to just 18% for all business
owners. Also, a quarter (25%) of millennial business owners who plan to
offer retirement benefits say tax reform has made it possible for them
to do so versus 19% of all business owners. 

“With the continued
economic expansion tightening labor markets, it’s more important than
ever for employers to offer comprehensive benefits like retirement
plans,” said John Carter, president of
retirement plans at Nationwide. “Some of the most successful companies
that we’ve worked with take an active role in encouraging their
associates to plan for their future.”

Millennials Plan and Seek Advice

Millennials
focus on retirement doesn’t stop at a company plan. They are also more
likely to have an exit plan for their business. Twenty-three percent
have identified a third-party to sell their business to in advance of
retirement, compared to just 10% of all business owners.

This
focus on planning could be attributed to the fact that half of all
millennials have a dedicated advisor assisting them with retirement
planning, compared to 43% of all business owners.

“It’s promising
that millennials are so focused on retirement and want to do more to
prepare both themselves and their employees for retirement. Working with
an advisor can help them achieve their personal and business goals,”
Carter said.

Companies can promote their retirement products to
Business Starters through a number of means. According to AudienceSCAN,
last year, 61.1% took action after receiving a text ad or after seeing
an advertisement on their mobile smartphone apps and 60.8% were driven
to action by email ads. They’re also 56% more likely than other adults
to click on text link ads and, last year, 71.2% took action because of
commercials on TV.

AudienceSCAN data is available for your applications and dashboards
through the SalesFuel API. Media companies and agencies can access
AudienceSCAN data through the AudienceSCAN Reports in AdMall.

Rachel Cagle

Rachel Cagle

Rachel is a Research Analyst, specializing in audience intelligence, at SalesFuel. She also helps to maintain the major accounts and co-op intelligence databases. As the holder of a Bachelors degree in English from The Ohio State University, Rachel helps the rest of the SalesFuel team with their writing needs.

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