The conventional wisdom is that young people today are inured to the idea that they will change jobs repeatedly over their careers, and that because of that, they don’t really think much about pensions. But it turns out that the conventional wisdom is wrong.
According to a survey by professional services firm Towers Watson (TW), the percentage of young workers who cited their pension plan as a reason for staying with their current employer has jumped from 28% two years ago to 43% now. Those who like their company’s 401(k) plans, in contrast, declined from 19% to 17%.
Alan Glickstein, a Dallas-based senior retirement consultant at Towers Watson, said he was surprised that so many young people cited their defined-benefit pension plan as a main reason for sticking with a job.
“What they want is security,” Glickstein says. “They saw people who were ready to retire after working a large number of years suddenly face a big setback because of the financial downturn. Whether it hit them directly or indirectly, it created fear, and the reaction is ‘I don’t want that.'”
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