Putting off retirement saving is not unique tomillennials. However, they face unique financial and socialbarriers to financial wellness and retirement planning. (Photo:Shutterstock)

It depends on who you ask.

Have you ever attempted to picture something that seemsimpossible, or that you have never seen before? This is retirementfor many in the millennial generation.

Millennials make up the largest proportion of the US workforcetoday. In fact, according to a recent Brookings Institute report, nearly 40% ofemployees fall between the ages of 22 and 38. And, in addition tosheer numbers, millennials bring greater gender, ethnic, and racialdiversity to our workforce than the generations before them.

For many millennials, the thought of retirement may seem toodistant to require any real thought or consideration. And for some,particularly African American, Latino, and first-generationAmericans, the concept of retirement may be something entirelynew.

With this knowledge, how can employers ensure that thisincreasingly diverse segment of the workforce is supported,engaged, and invested in their journey to long-term financialwellness?

1.  See things from their perspective.

Millennials are focused on the here and now. The median amountof debt among millennials is nearly 50% greater than that of theprevious generation, according to a Pew Research Center report. The rising cost ofeducation, as well as coming of age during the last financialcrisis, has resulted in a tough financial reality for thisgeneration.

As a result, millennials are waiting to do many of the thingsthe previous generations did at the same age, including buyinghomes, starting families, and – you guessed it – saving forretirement.

In fact, a recent report by the Federal Reserve Bank shows that only 42% of familiesunder age 35 have retirement savings accounts, and only 5% of thesefamilies are saving adequately for retirement based on the standardrecommendation by financial experts.

2. Look a little closer.

The millennial generation is incredibly diverse withapproximately 44% of millennials identifying as a racial or ethnicminority, according to the Brookings Institute. Additionally, thereare more women in the workforce than ever before. Growing diversitywithin the workforce brings a new breadth of experiences and ideas,and also requires attention to the challenges and vulnerabilitiesfaced by some groups.

For example, a 2019 McKinsey & Company report shows thatmillennials of color often encounter more economic challenges thannon-minorities.  The report also shows thatcollege-educated minority families see significantly lessgenerational wealth (only 8% report any inheritance), andsupporting parents and extended family financially takes a farheavier toll on the potential wealth of minority college graduates.Additionally, according to a recent SmartAsset report, data shows that only a thirdof African American families and Latino families have retirementsavings accounts.

3.  Take action.

Putting off retirement saving is not unique tomillennials. However, millennials face unique financialand social barriers to financial wellness and retirement planning.With this knowledge, there are a number of strategic and inclusiveactions employers can take to help engage their entire employeepopulation and make sure no one is left behind:

Take a human-centered approach. Ahuman-centered approach is a holistic approach. It considers thewhole person, and not simply what is in their bank account. Weunderstand that overall well being requires attention to ourmental, physical and financial health, but also to our sense ofsocial well being and belonging.

Accordingly, a holistic approach to financial wellness includesacknowledging the possible social, psychological, and/or logisticalbarriers to saving. Offering retirement plans, financial advisoryservices, and student loan programs are all integral parts offinancial wellness programming.

However, employers must first help employees envision a healthyfinancial future for themselves. Only then can we ask millennialsto engage and actively participate in financial wellness andretirement planning.

Create targeted communications. Millennials areseeking information, education, and advice from employers on how toachieve financial wellness and save for retirement. Communicationsaddressing the unique financial issues millennials face are morelikely to resonate and promote engagement. Additionally, a recentTransamerica Retirement survey showed thatalthough 55% of millennials understand basic financial concepts,only a quarter are truly financially literate.

Targeted communications should be used to make employees awareof the employer-sponsored plans available to them, and helpemployees understand the tax benefits, employer contributions, andinvestment opportunities your retirement plans provide.

Increase touchpoints. Frequent and diversetouchpoints are key to increasing understanding and encouragingengagement. Traditional electronic communications that areaccessible from anywhere at any time are important and necessaryfor today's workplace. However, traditional communications may notallow all employees to comprehensively explore offerings, andunderstand how the plans may help address their personal challengesor goals.

Millennials are hungry to learn about financial wellness, butmany may not know where to begin. Providing a wider variety ofpotential touchpoints such as live, on-site info sessions orone-on-one options, in addition to traditional messaging, willallow employees to engage in ways that suit their level of comfort,preferences, and overall needs.

Reassess your retirement plan design. Employers are willing to reassess plan designs according to theneeds of their organizations and employees, according to a recentFidelity plan sponsor study. In fact, 75% ofemployers reported making changes to their retirement plan designor investment menu within the last couple of years.

Increasing the employer matching contribution or adding amatching contribution were the top changes. Employers could alsoconsider adding automatic enrollment and increasing the defaultcontribution rate. Adding a student loan repayment "matching"contribution may also be a viable option for some employers.

Supporting the overall financial wellness and retirementreadiness of your workforce is not simply an investment in youremployees, it is an investment in your organization's future. Ascompetition for diverse and high performing talent increases,employers who are attuned to the unique needs of their employeesare better able to engage employees in all areas of work life-  improving recruitment, retention and overall companyperformance.

Uche Enemchukwu is abenefits attorney and strategy consultant at Nelu DiversifiedConsulting Solutions. She has in-depth experience advisingFortune 100 employers as well as small and mid-sized employers oncompliance with the Internal Revenue Code, ERISA, PPACA, HIPAA,COBRA and various other laws relating to employee benefit plans.She began her career as an associate attorney at a large law firmwith a well-regarded and sophisticated human capital and benefitspractice, then transitioned to consulting at Willis Towers Watson,where she drove benefits compliance and strategy results for large,global employers. She now manages compliance for the largest 401(k)plan and the largest pension trust in existence. Uche is a SHRM"highly-rated" speaker and is active in the American BenefitsCouncil and the American Bar Association. She received her J.D.from Washington University in St. Louis School of Law and an LL.M.in Taxation from the same institution. She received her B.A. inHistory and Comparative Area Studies from Duke University.