W2 Issues/Concerns


Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

Analysis Reveals How Much Millennials Need to Bank for Retirement

We’ve long discussed the challenges associated with hiring – and working with – millennials, but apparently now we have to be the ones who hold their hands and remind them that they are going to have to start putting some of their money away for the future. And, we can start by startling them with the actual figure!

 According to an analysis by Robert Powell, editor of Retirement Weekly, millennials need to save upwards of $2.5 million in order to ensure a comfortable future. However, it should be noted that this figure is really only for the tail-end millennials, that is, the ones born in the late 1990s. Those born in the 1980s should be able to squeak by with a comparatively small sum of $1.8 million.

So why do they need so much? According to Powell, the estimate is based on the fact that millennials will likely need between $30,000 and $40,000 annually (in today’s dollars) for retirement. Further, he estimates that a modest inflation rate of 2 percent will make $1 million of today’s dollars worth about $530,000 in 32 years and approximately $386,000 in 48 years.

 Based on these figures, that young millennial cohort will need to save about $1,000 per month — and that’s assuming 5 percent growth on investments annually – in order to meet the $2.5 million number in just under 50 years.

While this figure is certainly overwhelming, it’s a good number to share with your younger workers to encourage them to put away as much as they can and as soon as they can.

To read the full analysis, click here.


HR Managers: Discover how to effectively tackle business challenges with a PEO
Small Business: Discover how Abel HR can help your business.

Featured BLOGS

  • It’s Almost Holiday Time: HR Pitfalls to Think About (Awareness stage, small biz)

    Big-box stores already have Christmas decorations out among the Halloween décor, so this is a reminder that it is time to start planning the annual holiday party. The time-honored tradition of the company holiday party is an opportunity to not only thank your team for another 365 days of top-notch service (and your clients), but also time to boost morale and forge friendships between co-workers that might not otherwise have cause to interact on a day-to-day basis. Now, that’s not to say that there isn’t pitfalls to getting employees together after hours. We’ve all heard the horror stories about someone

  • What is the Key to Employee Retention?

    A staggering 3.5 million Americans quit their job EACH MONTH in 2008—marking the highest rate of turnover since the oh-so-fun recession of 2001, according to a recent report from the National Bureau of Labor Statistics. Further, analysts believe that the trend will continue as workers continue to grow weary with stagnant wages and the threat of yet another economic recession. Luckily, LinkedIn dug in its heels and flipped the tables, this time to figure out what makes workers want to stay. Topping that list, rather surprisingly, was the concept of continued learning. Indeed, 94% of workers suggested that they would


FSA | Commuter New Employee Abel Portal Time Clock