Millennials Are the Majority Workforce – Are Their Finances Screwed?
Many Americans have found themselves suffering from the current economic recession and it’s never been more difficult to anticipate the future. Millennials, in particular, are in a vulnerable position around their finances.
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Those who are born between 1981 and 1999 fall into this category and have accumulated notably less wealth than their counterparts at similar stages in life.
A poll from the Wall Street Journal, conducted in April 2020 just a month after the shutdown, found that Americans aged 18 to 34 were most likely to suffer an economic crisis, such as losing health insurance or receiving a pay cut.
With millennials being the largest generation in the workforce as of now, according to Pew Research, it will be vital for employers to consider their employees’ financial health throughout the next few months.
No Savings For a Recession
There are a few common financial stressors, in particular, that plague the millennial generation, such as student debt and limited savings.
Student loan debt is currently at a record high, amassing over $1.5 trillion, making it higher than auto loans or credit card debt.
As if student loan debt wasn’t shocking enough, millennials have extremely limited savings. Those who are aged 16 to 34 make around $35,000 on average, which is 20% lower than baby boomers made at the same age, adjusting for inflation.
To make matters worse, 36% of millennials have reported that they don’t save for retirement at all. Taking all of this into account, it’s impossible to ignore the fact that a recession has just unfolded, which puts millennials’ financial health at a higher risk.
During the height of the pandemic, nearly 15% of working Americans were unemployed, with a total of 50 million Americans filing for unemployment since the beginning of the pandemic in March. These are challenging times for any person around the world…
Financial Support Starts in the Workplace
The modern workforce is largely millennials, meaning it’s important that company leadership and human resources ensure they are well-equipped to help millennials feel supported by your organization.
Now more than ever, given these stressful times, not supporting your millennial employees can leave them feeling depleted and unproductive overall. Overcoming this means curating a holistic solution to their financial hardships. Contrary to popular belief, employees who experience financial stress actually value and want their employer’s help.
- For example, did you know 43% of millennials stated they would like employers to help them save for retirement?
- 40% claimed they would like help paying down their debts?
If you want to learn more about how financial wellness programs help attract and retain talent, watch our free webinar.
As an employer, you can help by offering a small-dollar loan program, such as TrueConnect. TrueConnect gives employees access to a safe, regulated bank loan so that they don’t have to worry about falling victim to accruing debt, especially during a financial crisis.
The best part? No credit check is required to qualify AND it is no cost to the employer to implement. Win-win. An added bonus is that borrowers can take advantage of free credit counseling sessions to help establish a budget, plan for retirement, or even consolidate debt.
To learn more about our no-cost, small-dollar loan program, contact us today.