Despite feeling anxious about their financial future, 73% of Millennials surveyed by Acorns admitted to not maintaining a monthly budget.
Tackling the issue on retirement plans at Employee Benefits Asia 2018 in Malaysia; Janice Ong, pensions and benefits director director, ABB, cited 47% employees feel that retirement plans are an important reason to stay with the company, in her presentation on 15 May.
Additionally, she showed how retirement benefits shift from being one of the least important aspects when it comes to C&B (for those younger than 40) to being to one of the most important aspects (for those older than 50).
On that note, she said: “Millennials are looking for rapid pay increases due to their needs at the moment such as student debts, lifestyle expenses increases, home purchases; while Gen X might be looking for career progression due to children education cost, childcare; whereas the Baby Boomers are prioritising more of family and health.”
“So when it comes to retirement plans, it is critical to reach out to employees at the right time as their needs are driven by life impacting decisions,” she continued.
With that, she shared key pointers on helping employees with retirement security:
#1 When staff expect to retire
Reinforcing the support for staff's career and financial goals, she advises to truly understand when staff expect to be able to retire. From there, you need to ensure benefits are fit to support an orderly retirement. She commented: “While this might not be a luxury for all, but it’s good to have a data analytics team to support this.”
#2 Tools and communication
To help staff with retirement security, Ong added that it is important to provide the right tools and technology to help educate staff in making the right decision. She said: “While this is something that shouldn’t be introduced only when they’re about to retire, it also can’t be introduced too early when it’s not their priority.”
“We go back to the fact where their needs are dependent on their life decision,” she continued.
#3 Access to financial advisors
The third tip she shared at Employee Benefits Asia 2018, Malaysia was to provide access to financial advisors. These could range from online tools to tracking spending, savings, determining financial position, and setting financial goals.
There is also other financial guidance such as investment products, and debt management services that could be provided for staff.
Closing her presentation, she said: “It’s a growing trend that not only physical health is important, but also mental health.
“We don’t want to come to a situation where employees work and work and work, but with no retirement plan. What we want is for staff to be supported with sufficient retirement security,” she concluded.
This knowledge was shared at the Human Resources’ conference, Employee Benefits Asia 2018, Malaysia. To know further and attend more of such events, please visit: http://www.humanresourcesonline.net/events/
In addition to Ong, speakers for day two of Employee Benefits Asia 2018, Malaysia included:
- Adam Abdullah, human resources director, Weir Minerals Malaysia,
- Amber Dossey, vice-president, group human resources, PureCircle,
- Chen Fong Tuan, chief people officer, Mah Sing Group,
- John Garrido, regional director, Virgin Pulse Asia,
- Lee U-Jin, HR director, Asia, Sibelco,
- Lim Chee Gay, chief human resources officer, Teledirect Telecommerce,
- Nor Aida Binti Ahmad Tajudin, senior manager compensation and benefits international, human capital management, group HRM, PETRONAS,
- Thamayenthi Narayan, senior manager, talent management, DKSH Malaysia
Human Resources would like to thank our sponsors and partners in the success of this conference:
- AIA Group
- Institut Jantung Negara
- Virgin Pulse
- Cardiac Vascular Sentral Kuala Lumpur
Official Association Partner
- Malaysian Institute of Human Resource Management