4. Taxes Rank High Among Millennials
The good news is that most millennials are paying attention to taxes: More than half (52 percent) of those surveyed by Natixis acknowledge that tax incentives are one of the top reasons they participate in their company-sponsored retirement plan. Yet 37 percent of investors admit that they don’t consider the tax implications of their investment decisions, and 43 percent have taken a withdrawal from their retirement savings plan at some point, subjecting themselves to taxes and penalties. Millennials do say they want help, with more than half (55 percent) asking for professional assistance with tax planning, Natixis’ research found.
Financial security doesn’t just happen. It requires education and guidance. By improving understanding in these four critical areas, millennials will be in a better financial state, a benefit that will pay dividends for not only this generation but also the others behind it for decades to come.
Edward Farrington is executive vice president of retirement strategies at Natixis Investment Managers. In that role, he leads several multi-channel business units, including the defined contribution and personal retirement business. Mr. Farrington was previously based in London, where he led global wholesale efforts for the firm, supporting clients throughout Europe, Asia and the Americas.