Voluntary Benefits for the Multi-generational Workforce

T H E M U L T I - G E N E R A T I O N A L WO R K F O R C E

S O C I E T A L T R E N D S & V O L U N T A R Y B E N E F I T S

H OW T O L A U N C H A V O L U N T A R Y B E N E F I T S P R O G R A M

T H E R O L E O F T H E V O L U N T A R Y B E N E F I T S C O N S U L T A N T

a new age of work and workers

A NEW AGE OF WORK AND WORKERS

THE LINGERING ISSUE OF HIGH-COST HEALTHCARE

People are living and working longer. Even though most Pre-Boomers and the oldest Baby Boomers have already retired 1 , it’s not unusual for a workforce to span 45 years or more. The wide variance in age poses major challenges for employers. A 60-year-old, a 40-year-old and a 20-year-old working in the same organization will have very different expectations and views of the workplace. It follows that health and welfare benefits will mean one thing to one demographic and something else to another. Let’s review the three major working generations—Millennial, Generation X and Baby Boomer—and their challenges: Millennials, saddled with debt, worry about catching up. Millennials have surpassed Baby Boomers as America’s largest living generation. 2 But unlike their older colleagues who’ve enjoyed relative job security, many Millennials began to enter the workforce in 2007 during one of the worst economic downturns in history, and then faced years of unemployment or under-employment. Saddled with student loan debt and struggling to make ends meet, many Millennials moved back in with their parents. While unemployment in this demographic has eased recently, it has had a lasting effect. Millennials are bringing their financial uncertainties to work, and they’re asking their employers for help. 3 Gen X’ers, caregivers for adult children and aging parents, worry about keeping up. More than 60 million Americans live in multi-generational homes. 4 Step-relatives, same-sex couples, parents, grandparents, adult children and younger dependents, or a combination thereof, may reside under one roof. At the epicenter of this societal shift is the Gen X’er who’s caring for family members on both sides of the generational divide. Instead of downsizing as they age, some Gen X’ers are upsizing their homes and taking on greater financial obligations to accommodate their extended families. 5 In addition to healthcare benefits and 401(k)s, they need specific insurance coverages that will help them provide for their loved ones and protect their finances. Baby Boomers, facing retirement someday, worry how they’ll end up. This demographic largely avoided student loans due to the expansion of public education, and except for a few economic downturns through the decades, many enjoyed stable employment. 6 But Baby Boomers are working longer primarily due to current and future income insecurity. Some who’ve reached the age of retirement didn’t save enough and can’t live on Social Security alone. 7 Others work because they’re still paying off a mortgage. Some continue employment because they thrive on the mental stimulation and social connection their jobs provide. Whatever their reason for staying on the payroll, Boomers need employee benefits that will protect them during their extended lifespans. A study by Prudential reports that a majority of employees, and that means employees of any age, are not fully prepared to meet their financial needs in the face of four key risks 8 : 1. Loss of income due to illness or injury 2. Out-of-pocket medical and non-medical expenses 3. Outliving assets in retirement 4. Loss of income due to premature death

5 KEY CHARACTERISTICS OF THE GEN X’ER

4 KEY FINANCIAL SHOCKS FACING RETIREES

THE GENERAT IONS

Pre-Boomers (born 1925-1945)

Baby Boomers (born 1946-1964)

1 Gallup, “Only a Third of the Oldest Baby Boomers in the U.S. are Still Working” 2 U.S. Census Bureau/Pew Research Center 3 Advisor Perspectives, “Millennials and the Labor Force” 4 Pew Research Center, “FactTank” 5 Forbes, “The Undetected Influence of Generation X” 6 The Balance, “Baby Boomers in the Workplace” 7 AARP, “Boomers Boosting Economy” 8 Prudential, “How Well Protected Are Employees Against Key Financial Risks?”

Generation X (born 1965-1980)

Millennials (born 1980-1994)

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