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

It depends on who you ask.

Have you ever attempted to picture something that seems impossible, or that you have never seen before? This is retirement for many in the millennial generation.

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

For many millennials, the thought of retirement may seem too distant to require any real thought or consideration. And for some, particularly African American, Latino, and first-generation Americans, the concept of retirement may be something entirely new.

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

1.  See things from their perspective.

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

As a result, millennials are waiting to do many of the things the previous generations did at the same age, including buying homes, starting families, and – you guessed it – saving for retirement.

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

2. Look a little closer.

The millennial generation is incredibly diverse with approximately 44% of millennials identifying as a racial or ethnic minority, according to the Brookings Institute. Additionally, there are more women in the workforce than ever before. Growing diversity within the workforce brings a new breadth of experiences and ideas, and also requires attention to the challenges and vulnerabilities faced by some groups.

For example, a 2019 McKinsey & Company report shows that millennials of color often encounter more economic challenges than non-minorities.  The report also shows that college-educated minority families see significantly less generational wealth (only 8% report any inheritance), and supporting parents and extended family financially takes a far heavier toll on the potential wealth of minority college graduates. Additionally, according to a recent SmartAsset report, data shows that only a third of African American families and Latino families have retirement savings accounts.

3.  Take action.

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

Take a human-centered approach. A human-centered approach is a holistic approach. It considers the whole person, and not simply what is in their bank account. We understand that overall well being requires attention to our mental, physical and financial health, but also to our sense of social well being and belonging.

Accordingly, a holistic approach to financial wellness includes acknowledging the possible social, psychological, and/or logistical barriers to saving. Offering retirement plans, financial advisory services, and student loan programs are all integral parts of financial wellness programming.

However, employers must first help employees envision a healthy financial future for themselves. Only then can we ask millennials to engage and actively participate in financial wellness and retirement planning.

Create targeted communications. Millennials are seeking information, education, and advice from employers on how to achieve financial wellness and save for retirement. Communications addressing the unique financial issues millennials face are more likely to resonate and promote engagement. Additionally, a recent Transamerica Retirement survey showed that although 55% of millennials understand basic financial concepts, only a quarter are truly financially literate.

Targeted communications should be used to make employees aware of the employer-sponsored plans available to them, and help employees understand the tax benefits, employer contributions, and investment opportunities your retirement plans provide.

Increase touchpoints. Frequent and diverse touchpoints are key to increasing understanding and encouraging engagement. Traditional electronic communications that are accessible from anywhere at any time are important and necessary for today's workplace. However, traditional communications may not allow all employees to comprehensively explore offerings, and understand how the plans may help address their personal challenges or goals.

Millennials are hungry to learn about financial wellness, but many may not know where to begin. Providing a wider variety of potential touchpoints such as live, on-site info sessions or one-on-one options, in addition to traditional messaging, will allow 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 the needs of their organizations and employees, according to a recent Fidelity plan sponsor study. In fact, 75% of employers reported making changes to their retirement plan design or investment menu within the last couple of years.

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

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

Uche Enemchukwu is a benefits attorney and strategy consultant at Nelu Diversified Consulting Solutions. She has in-depth experience advising Fortune 100 employers as well as small and mid-sized employers on compliance 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 firm with a well-regarded and sophisticated human capital and benefits practice, 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 Benefits Council 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. in History and Comparative Area Studies from Duke University.