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Why Millennials Shouldn’t Bank on a Pension

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Lisa Chui is the VP of Finance + HR at Ubiquity Retirement + Savings. She is a 17-year veteran and expert in Silicon Valley finance with an emphasis in disruptive technology and start-ups. She began her career in marketing finance and later moved into the tech sector before venturing into Private Equity. Lisa currently heads up both the finance and HR functions at Ubiquity and spends her days budgeting, forecasting, recruiting and ensuring our employees are happy and engaged. She is excited to help propel Ubiquity’s growth through human capital, profitability, and innovation.

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January 13, 2016 at 9:49 am
Retirement News

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We all want a secure financial future that allows us to live comfortably in retirement. What we must first come to terms with is that a 21st century economy commands a 21st century savings plan – one that excludes the promise of a pension. As more and more millennials find their roles in the modern day workplace and begin to consider retirement and savings plans, they must first come to terms with the fact that pensions, once reveled by their parents and grandparents, are a thing of the past.

Once considered a major benefit for workers, pensions are now too complicated and costly for employers, especially for those who own small- to medium-sized businesses. Pensions are increasingly taking a back seat to 401(k) matching, Roth IRAs (Individual Retirement Accounts) and the Obama Administration’s proposed myRA program which allows employers with ten or more employees to make savings options – via a federal program – available to their employees through a streamlined payroll reduction process.

You do not have to be an expert saver to know that pension-replacing options exist. The critical issue is that the United States needs to be making workplace-based retirement savings accounts more widely available to all, especially to millennials. Luckily, progress is currently underway.

Some state legislatures, including New Jersey, Illinois, and California, are making progress by introducing Secure Choice legislation, which will give thousands of small businesses access to state-administered retirement programs, narrowing the gap between savers and non-savers. The federal government, as noted above, has even taken a stab at implementing work savings programs. The myRA program, or even the Secure Choice legislation, aren’t catchall solutions, but they are steps in the right direction. The very fact these options are being discussed at such high levels are a signal to all that retirement security is quickly making its way to the forefront of our national psyche.
In today’s saving world, millennials and their employers no longer have any excuses, nor are they at a disadvantage with a lack of options; 401(k), myRA, and Secure Choice will soon be available to most. Simply, we need to offer millennial workers basic plans that embrace technology, particularly on mobile devices, and are available to those employed by both large and small businesses. In order to help millennials kick-start their first opportunity to save for retirement, we need a new generation of saving options – one that fits the wants and needs of the

In today’s saving world, millennials and their employers no longer have any excuses, nor are they at a disadvantage with a lack of options; 401(k), myRA, and Secure Choice will soon be available to most. Simply, we need to offer millennial workers basic plans that embrace technology, particularly on mobile devices, and are available to those employed by both large and small businesses. In order to help millennials kick-start their first opportunity to save for retirement, we need a new generation of saving options – one that fits the wants and needs of the largest generation in the workforce.

My advice to millennials: forget about pensions. Focus on retirement security through your employer or on your own, and start today. There is no better time than now to start saving for your future.