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Today’s multi-generational workforce: who are they, and what are their financial needs on the path to income for life in retirement?

For the first time, employers have a diverse multi-generational group of employees working side-by-side who have varying degrees of financial needs, values, expectations, and paths to retirement. One way to effectively engage these employees is with benefits options that deliver more confidence, better financial outcomes, timely retirement, and the assurance of having income for life in retirement.

Today, The University of Financial Future is having a retirement party for one of its long-time employees—its Benefits Director, John. Let’s meet some of the employees from each generation attending the party and uncover how employers can best address their current financial needs. Then we can determine how to get them on the path to income that never runs out in retirement.

Get started by clicking on a character to the right.*Get started by clicking on a character.*

Each of these characters here are fictional characters based on trends and insights from the multi-generational workforce. No character represents an actual human being.

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Meet James

Benefits Manager, The University of Financial Future

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29 years old

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Has a passion for environmental sustainability

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Has just started at The University

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Is interested in flexible working arrangements, healthcare benefits, and his next trip to Gulf Shores

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Is contributing to his workplace retirement benefit, but isn’t sure if it’s enough

Many millennials like James are challenged with balancing the need to build a retirement savings for their future while meeting their current expenditure.

did you know?

30%
Less than 30% of millennials have received any form of financial education1

James' financial needs include:

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Affording basic necessities–housing, food, healthcare, emergency fund

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Getting ahead on his student loan payments

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Planning for the future

Opportunities The University has to meet James’ needs:

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Provide flexible benefits such as student loan/debt reduction assistance

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Make it easy for him to achieve success by offering automatic enrollment

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Optimize matching contributions

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Encourage him to plan for monthly income for life by contributing to fixed and variable annuities*

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Offer him comprehensive financial education with personalized advice

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Leverage technology to engage him through things like gamefying enrollment

Want to know more about the needs of the millennial workforce? Take a deeper dive with our millennial infographic.

START HERE
Or get back to the party to find out more about the multi-generational workforce and its needs. >

For Institutional use only

1. Here’s how much money the average millennial has in savings. Elkins, Kathleen. CNBC, 2017

* Annuity account options are available through contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance.

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Meet John

Newly retired from his position as Benefits Director, The University of Financial Future

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67 years old

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Has worked at the University for 30 years

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Is married, has 4 children

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Is about to take that trip to the U.S. Virgin Islands

Like many baby boomers, John plans to take 4-5 leisure trips this year.1

John’s financial goals in retirement include:

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Securing a stream of monthly income for life to meet essential costs

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Income growth potential so he can maintain his lifestyle

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Covering increased healthcare costs

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Leaving something behind for his children

John has been concerned about:

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Market fluctuations decreasing the value of his savings

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His savings and investments lasting throughout retirement

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Making sure he has guaranteed monthly income for life

John recently met with his financial advisor and was assured he has what he needs to live comfortably and meet his financial goals in retirement through a diversified income plan that includes:

A variable annuity This investment option provides growth potential, inflation protection, and a source of monthly income for life.*

A fixed annuity This gives John guaranteed monthly income for life to meet his essential expenses and protects against market volatility.*

Other investments These offer growth and income potential, liquidity, and the opportunity to leave a nest egg to loved ones.*

John now has monthly income guaranteed for life through a diversified income portfolio. This gives him the ability to live the lifestyle he envisioned with the confidence of knowing he has income for life.

Dive deeper into how a diversified portfolio can help secure income for life in retirement in the Income diversification: A strategy for pursuing better retirement outcomes whitepaper.

START HERE
Or get back to the party to find out more about the multi-generational workforce and its needs >

For Institutional use only

1. 2018 boomer travel trends. AARP, 2018

* All guarantees are based on the claims-paying ability of Teachers Insurance and Annuity Association of America.


Interest credited to TIAA Traditional accumulations includes a guaranteed rate, plus additional amounts that may be established on a year-by-year basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the "declaration year", which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for future years.

×

Meet Barbara

Chief of Staff, The University of Financial Future

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63 years old

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Is looking to retire in the next few years, but is still working so she can continue to save and convert her savings into monthly income that won’t run out in retirement

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Is married, has 4 children and 5 grandchildren she helps financially support

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Wants to take a trip to the Cayman Islands this year

Baby boomers like Barbara are closer to retirement than other generations, which means they need to start considering how to transition savings into structured income for retirement.

did you know?

41%
of baby boomers like Barbara have nothing saved for retirement1

However, Barbara has been contributing to The University’s plan and will start transitioning her investments soon.

Financial needs in retirement:

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Basic needs - housing, food, and especially healthcare

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Living comfortably after retirement with a secure stream of income

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Avoiding market fluctuations that will impact her lifestyle

did you know?

50%
Over 50% of baby boomers do not manage or review their investment accounts regularly3

Opportunities The University has to meet Barbara's needs:

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Ensure overall benefits package meets her needs, such as healthcare and retirement savings

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Offer financial solutions that include budgeting, workplace mentorship programs, and assistance with transitioning to retirement

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Provide her with personalized advice and a financial literacy curriculum

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Offer retirement investment menu options that allow her to invest easily and achieve protected income for life*

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Consider a phased retirement relationship that allows her to work part-time as she transitions to retirement

Want to know more about the baby boomer workforce? Take a deeper dive with our baby boomer infographic

START HERE
Or get back to the party to find out more about the multi-generational workforce and its needs >

For Institutional use only

1. Baby boomers upend the workforce one last time. Van Dam, Andrew. The Washington Post, 2019

2. Are you a baby boomer? What is your retirement readiness?. Johnson, Joel. Forbes, 2018

* All guarantees are based on the claims-paying ability of Teachers Insurance and Annuity Association of America.

×

Meet Jake

Professor of Economics, The University of Financial Future

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49 years old

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Helps his mom with some of her healthcare bills

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Is married, has 2 children, 1 about to start college

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He had a brief financial setback during the 2008-2009 recession, but he’s experienced a decade of upward mobility

Many Gen Xers like Jake face the unique challenge of making financial choices that impact themselves, their children, as well as their parents.

did you know?

52%
of Gen Xers report not having enough emergency savings for unexpected expenses as their top financial concern1

Jakes' financial needs include:

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Basic needs - housing, food, healthcare, an emergency fund

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A plan to get him on track to retire on time or early with monthly income for life in retirement

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Confidence his investments will outpace cost of living increases

did you know?

68%
of Gen Xers report wanting more retirement education and advice from their employers2

Opportunities The University has to meet Jake's needs:

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Consider having employee retirement plan contributions automatically escalated

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Establish clear goals for the plan you offer employees that will support both immediate and long-term needs

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Offer him investment menu options that will provide monthly income for life with fixed and variable annuities*

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Communicate benefits by leveraging the right technology

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Help him explore leadership opportunities

Want to know more about the Gen X workforce? Take a deeper dive with our Gen X infographic.

START HERE
Or get back to the party to find out more about the multi-generational workforce and its needs >

For Institutional use only

1. What is “retirement”? Three generations prepare for older age. Transamerica Center for Retirement Studies, 2019

2. What is “retirement”? Three generations prepare for older age. Transamerica Center for Retirement Studies, 2019

* Annuity account options are available through contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance.


Interest credited to TIAA Traditional accumulations includes a guaranteed rate, plus additional amounts that may be established on a year-by-year basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the "declaration year", which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for future years.

×

Meet Michelle

Plan Sponsor, The University of Financial Future

Michelle is looking to find investment options that meet the needs of a diverse workforce. Her top concerns are:1

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Employees not saving enough

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Employees delaying retirement

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Retiree healthcare costs

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Employee turnover

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Employees outliving retirement savings

Most 65-year-olds are now living past the age of 852 Michelle wants to make sure The University’s employee retirement plan is structured to ensure employees will have enough monthly income for life to make it through all of their retirement years.

did you know?

62%
of employees would rather get a monthly paycheck for life rather than a lump sum at retirement3

So how can Michelle ensure income for life and stability for employees?

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Offer lifetime income solutions in her plan menu so employees can create a diversified income portfolio*

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Educate employees on the benefits of fixed and variable annuities so they can have a “paycheck” in retirement*

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Encourage financial education that is relevant to each generation

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Provide a retirement plan design that promotes flexible retirement menu options as well as offer work/life balance benefits

Find out more about how plan sponsors can meet the needs of the multi-generational workforce in the Engaging employees across generations to build retirement confidence whitepaper.

GET IT HERE
Or get back to the party to find out more about the multi-generational workforce and its needs >

For Institutional use only

1. If you’re worried about your workforce’s retirement, you’re not alone. TIAA, 2018

2. Closing the guarantee gap: How policy makers can restore the role of lifetime income in workplace retirement plans. TIAA

3. If you’re worried about your workforce’s retirement, you’re not alone. TIAA, 2018

* Annuity account options are available through contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance.


Interest credited to TIAA Traditional accumulations includes a guaranteed rate, plus additional amounts that may be established on a year-by-year basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the "declaration year", which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for future years.

TIAA Multigenerational Interactive Party

FOR INSTITUTIONAL USE ONLY


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1. Here’s how much money the average millennial has in savings. Elkins, Kathleen. CNBC,2017

2. This is the age most Americans pay off their student loans. Hess, Abigail. CNBC, 2017

3. Understanding the state of millennial personal finances. TIAA, 2018

4. What is “retirement”? Three generations prepare for older age. Transamerica Center for Retirement Studies, 2019

5. Gen X retirement: Will it be amazing?. Rae, David. Forbes, 2018.

6. PwC’s 8th annual employee financial wellness survey 2019 results. PwC, 2019

7. Baby boomers upend the workforce one last time. Van Dam, Andrew. The Washington Post, 2019

8. Are you a baby boomer? What is your retirement readiness?. Johnson, Joel. Forbes, 2018

9. What is “retirement”? Three generations prepare for older age. Transamerica Center for Retirement Studies, 2019

28%

Dennis

On the weekends, Dennis tutors local high school students in algebra for extra cash. He’s like 28% of boomers that have engaged in the gig economy.8

Character Dennis Babyboomer - Click Dennis to See Information

John

Retiree, 67 years old

He made it to retirement and is celebrating today.

Click on John to get his story
Character John Retire - Click John to See Information

Kendrick

Among the older millennials like Kendrick, 58% understand how to borrow, while only 36% comprehend the risks associated with it.3

Character Kendrick Millennial - Click Kendrick to See Information
41%

Lynn

Lynn is among 43% of Gen Xers leading virtual teams at The University.6 She's tech savvy and looking for innovative ways to lead her teams.

Character Lynn Gen X - Click Lynn to See Information
41%

James

Millennial, 29 years old

of millennials like James have $0 in their bank accounts.1

Click on James to get his story
Character James Millennial - Click James to See Information
42%

Barbara

Baby boomer, 63 years old

of baby boomers like Barbara expect to work beyond the age of 657

Click on Barbara to get her story
Character Barbara Babyboomer - Click Barbara to See Information
77%

Jake

Generation X, 49 years old

of Gen Xers like Jake are saving for retirement in an employer-sponsored 401(k) or similar plan. See what else he should be doing.4

Click on Jake to get his story
Character Jake Gen X - Click Jake to See Information

Michelle

Plan Sponsor

How can I make sure my employee retirement plan is structured in a way that will help me attract and engage a multi-generational workforce?

Click on Michelle to find out
Character Michelle Advisor - Click Michelle to See Information
70%

Mary

Almost 70% of graduates like Mary leave college with student debt, posing a unique financial challenge for millennials.2

Character Mary Millennial - Click Mary to See Information
1/2

Gary

More than half of baby boomers, like Gary, are concerned about outliving savings and investments.9

Character Gary Gen X - Click Gary to See Information
1/3

Sarah

Sarah is among the 1/3 of Gen Xers who have zero retirement savings.5

Character Sarah Gen X - Click Sarah to See Information

Jeff

This is Jeff. He just really digs music, man. Right now, he’s between passion projects, but he gets by with DJing. His retirement plan is the tip jar at the front of the stage.

Character Jeff Millennial - Click Millennial to See Information Income Diversification PDF - Click to View

Income diversification: A strategy for pursuing better retirement outcomes

READ THE WHITEPAPER >
Income Diversification PDF - Click to View Gen X PDF - Click to View

Find out what’s unique about Gen Xers

READ THE INFOGRAPHIC >
Gen X PDF - Click to View  PDF - Click to View

Engaging employees across generations to build retirement confidence

READ THE WHITEPAPER >
 PDF - Click to View Baby Boomer PDF - Click to View

Find out what's unique about baby boomers

READ THE INFOGRAPHIC >
Baby Boomer PDF - Click to View Millennials PDF - Click to View

Find out what's unique about millennials

READ THE INFOGRAPHIC >
MIllennials PDF - Click to View Multi-generational PDF - Click to View

Quick tips for engaging the needs of the multi-generational workforce

DOWNLOAD THE CHECKLIST >
Multi-Generational PDF - Click to View