Pub 8 2018-2019 Issue 1

8 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S Bridging the Retirement Savings Accumulation Gap for Millennials FEATURE ARTICLE LISA WALKER, TECHNICAL EDITOR, ASCENSUS In addition, millennials who incur major expenses, such as those related to home purchases or job changes and relocation, tend to dip into their savings for these costs, rather than incur more debt. R esearch shows that the millennial generation is the best generation of savers since the Great Depression. This is good news. Millennials understand how important it is to save, and they want to save. But it doesn’t mean that millennials are saving in the right way or are saving enough, especially for retirement. In fact, the average millennial’s savings is lacking. This lack of savings has created an ac- cumulation gap—the difference between wanting to save and saving enough—among millennials. Millennials are saving, but they might not be taking advantage of the best retirement savings vehicles (IRAs, employ- er-sponsored retirement plans, etc.). And theymight not be getting what they need from their savings organizations. It’s time financial organizations shift their attention from baby boomers, who are in the midst of retiring, to millennials, who are active members of the workforce pre- paring for retirement. By doing so, financial organizations can revitalize the landscape of saving and in turn, reap the rewards of new long-term customer relationships. LowInterest RatesReshapedSaving According to industry expert and Ascen- sus Regional Vice President Kevin Boyles, the accumulation gap can be attributed in