Today, there are 75.4 million millennials living in the United States, makingthese 18-34-year-olds America’s largest generation. Not surprisingly,young people also are taking over the workforce, with one in threeAmerican workers classifying themselves as a millennial, accordingto the Pew Research Center.

This trend willonly increase with time: It’s projected by the year 2050, there will be 79.2million millennials (aka Gen Y) living in the UnitedStates.

When it comes to planning for their financial future, this groupis facing some unique challenges. This generation came of ageduring the 2008 financial crisis and witnessed the economic falloutfrom the Great Recession, which is shaping their attitudes towardsaving.

At the same time, young people are struggling with student loandebt – the average class of 2016 graduate, for example, owes$37,172, according to Student Loan Hero.

In addition, even a small cut in income, as little as 10percent, can wipe out savings and endanger Gen Y financialsecurity, says research from TIAA Institute's report "Operating and Financial Leverage in Gen YHouseholds."

These obstacles have resulted in young people delaying majorlife milestones, including starting to save for the future. Infact, the word “retirement” does not resonate with Gen Y, perhapsbecause it is perceived as a distant need when they are strugglingwith much more immediate priorities.

Starting early is the best way to ensure dreams for life afterwork are realized, but when TIAA analyzed how Gen Y is saving for retirement, it found 32percent are not saving any of their annual income for thefuture.

Knowing the importance of working with young people early intheir careers to educate them about the merits of saving for asecure financial future, here are some approaches tailored to Gen Yparticipants:

• Encourage enrollment, matching and regular smallincreases – Enrolling in an employer-sponsored retirementplan is a critical first step for Gen Y participants. Contributingeven just a small amount can make a big difference, especiallysince younger workers benefit most from the power of compounding,which allows earnings on savings to be reinvested and generatetheir own earnings.
  
  Encouraging enrollment also helps younger workers get into thehabit of saving consistently, and benefit from any matching funds.Emphasize the benefits of employer matching contributions as theyhelp increase the amount being saved now, which could make a bigimpact down the line. Lastly, encourage regular increases insaving, which can be fairly painless if timed to an annual raise orbonus.

• Help younger workers understand how much isenough – We believe the primary objective of a retirementplan is offering a secure and steady stream of income, so it’simportant to help this generation create a plan for the retirementthey imagine. Two key elements are as follows:
  
  
  • Are they saving enough? TIAA’s 2016 LifetimeIncome Survey revealed 41 percent of people who are not yet retiredare saving 10 percent or less of their income, even though expertsrecommend people save between 10 to 15 percent.
    
    
  • Will they be able to cover their expenses for as longas they live? Young professionals should consider thelifetime income options available in their retirement plan,including annuities, which can provide them with an income floor tocover their essential expenses throughout their lives.
    
    Despite the important role these vehicles can play in a retirementsavings strategy, 20 percent of Gen Y respondents are unfamiliarwith annuities and their benefits.

• Provide access to financial advice – Providingaccess to financial advice can help younger plan participantsestablish their retirement goals and identify the rightinvestments. By setting retirement goals early, and learning aboutthe appropriate investments, Gen Y participants can positionthemselves for success later on.
  
  The good news is TIAA survey data revealed Gen Y sees the valuefinancial advice can provide, with 80 percent believing in theimportance of receiving financial advice before the age of 35.

• Understand the needs of a tech-savvy and digitallyconnected generation – It’s important to meet thisgeneration where they are—on the phone, in person or online. We’velearned that this generation expects easy digital access to theirfinancial picture, and we offer smartphone, tablet and smartwatchapps in response.
  
  
  • Engage Gen Y with digital tools - Choose onesthat educate in a style that does not preach and allows them totake action. One way to reach Gen Y on topics such as retirement,investing and savings is through gaming.
    
    We’ve found that the highest repeat users of our Financial IQ gameare ages 24-34, and that Gen Y is significantly more engaged withthe competition, with 50 percent more clicks.

Perhaps more than any other generation, Gen Y needs tounderstand the importance of saving for their goals for the futureeven if it’s several decades away. Employers play an integralrole in kick-starting that process: first, by offering awell-designed retirement plan that empowers young people to takeaction; and second, by providing them with access to financialeducation and advice that encourages them to think thoughtfullyabout their financial goals—up to and through retirement.

The material is for informational purposes only and shouldnot be regarded as a recommendation or an offer to buy or sell anyproduct or service to which this information may relate. Certainproducts and services may not be available to all entities orpersons.

TIAA-CREF Individual & Institutional Services, LLC,Teachers Personal Investors Services, Inc., and Nuveen Securities,LLC, Members FINRA and SIPC, distribute securitiesproducts.

©2017 Teachers Insurance and Annuity Association ofAmerica-College Retirement Equities Fund, 730 Third Avenue, NewYork, NY 10017

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