Data & Research August 26, 2016

Both Millennials and Boomers Rely on Apps to Manage Retirement

However, Millennials are using technology more frequently for managing finances and leading healthy lifestyles.
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Both Baby Boomers and Millennials rely on applications and tools to manage their retirement savings, Willis Towers Watson found in a survey. However, when it comes to managing their personal finances and health, Millennials place a much higher premium than Boomers on technology.

Sixty-six percent of both Boomers and Millennials say that mobile apps and tools are either important or very important to manage and track the value of their retirement savings. Fifty-nine percent of Millennials and 54% of Boomers place a high value on tools to help them monitor when they can expect to retire and how much retirement income their savings will generate.

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When it comes to monitoring bank accounts and paying bills, 71% of Millennials, compared to 44% of Boomers, value mobile apps. Fifty-seven percent of Millennials, compared to 42% of Boomers, say it is important or very important to use online price comparison sites to shop for the best deals. Additionally, the number of Millennials who value budgeting tools to help monitor household spending far outstrips Boomers (41% versus 18%), as well as those who place importance on financial advice websites (25% versus 14%).

Thirty-three percent of Millennials but only 24% of Boomers rate wearable devices to track their health as important or very important. Thirty-five percent of Millennials versus only 16% of Boomers rate apps to track diets as important or very important. And while 27% of Millennials value apps to monitor sleep habits, only 14% of Boomers believe those apps are valuable.

“There is a misconception that Boomers don’t have much need or use for technology, especially when it comes to preparing for retirement and managing their finances once their working days are over,” says Steve Nyce, senior economist at Willis Towers Watson. “In reality, all generations feel vulnerable about their long-term financial security and ability to retire comfortably, and recognize that technology can help them engage in and make important decisions about their health and personal finances.”

Willis Towers Watson’s findings are based on a survey of 5,083 U.S. employees between June and August of last year.

Products August 25, 2016

New Program Integrates 401(k) and HSA Deferrals

Perspective Partners has launched a program designed to help employees take advantage of 401(k) retirement accounts and health savings accounts (HSA)s.
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The firm describes its NestUp Managed Deferrals program as the “first and only program that educates employees, offers them personalized 401(k) and HSA deferral recommendations, and implements their choices with just two clicks.”

NestUp also recommends directing HSA deferrals to different retirement-oriented investments when appropriate, Perspective Partners says.

“NestUp doesn’t treat HSAs and 401(k)s as separate silos,” explains CEO of Perspective Partners, David Snyder. “It takes an integrated approach that optimizes employer matching and tax benefits. And by helping employees save for near-term out of pocket costs, it can lead to greater acceptance of high deductible health plans. It’s a win-win for both employers and employees.”

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NestUp recently completed a two-year pilot program. According to Perspective Partners, “HSAs were increased both years by employees who received personalized guidance to do so along with a ‘do-it-for-me’ option for easy execution. In year one, 47% of those employees made an increase. In year two, it was 68%. Deferrals into 401(k)s were also increased both years by employees who received personalized guidance to do so. In year one, 60% of those employees made an increase. In year two, it was 14%.

“Because our platform pulls together education, highly personalized guidance and easy execution, NestUp is a better mousetrap that can generate far more added value and differentiation,” says Snyder. “We’re eager to work with strategically minded advisers and ecosystem partners to bring the industry to a new level.”

Perspective Partners is a wholly owned subsidiary of Manning & Napier Group.

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