Break from the Grind February 2, 2021

Youngest Generations Struggling the Most With Remote Work

They feel less connected and are more worried about their career success, a survey found.

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Employees younger than 30 are struggling with remote work and experiencing more stress in the wake of COVID-19 than their older counterparts, according to a meQuilibrium study of 7,000 employees.

“Remote work is hardest on young Millennials and Generation Z, because they feel less connected and [under] high pressure,” says Andrew Shatté, chief knowledge officer and co-founder, meQuilibrium.

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The study found this younger group is more at risk for burnout and low motivation than older employees, who are more established and connected to their workplace. More than one-third (34%) are more worried about their success as compared to employees older than 30, and 15% are more concerned about their jobs.

In addition, 29% reported having more difficulty with motivation, more so than their older counterparts.

“The pile-on of pressures—financial challenges, worry about job loss and [worry about] the long-term cost to their careers—has Gen Z and young Millennials feeling under water,” says Shatté. “Remote work has made them feel less connected, less informed and missing out on the mentorship that young people need.”

Shatté says mentoring is a key factor in helping young workers cope with pandemic-related challenges. “The guidance of more established employees is especially helpful to workers experiencing high distress, and mentorship will continue to be an important element in places where remote work is here to stay and as we transition into a hybrid world and back into physical workplaces,” he says.

Ask the Experts February 2, 2021

What Are Surrender Fees?

Experts from Groom Law Group and Cammack Retirement Group answer questions concerning retirement plan administration and regulations.

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“I work for a health care provider that maintains a 403(b) plan. I was recently informed that one of our legacy providers charges something called a ‘surrender fee.’ Can you explain what this is?”

Charles Filips, Kimberly Boberg, David Levine and David Powell, with Groom Law Group, and Michael A. Webb, vice president, Retirement Plan Services, Cammack Retirement Group, answer:

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A surrender fee is a charge for transferring your assets out of an investment, generally an annuity contract (i.e. “surrendering your assets”), before a set time period specified under the contract. Surrender fees are not unique to 403(b) plans, as such fees apply to some, but not all, annuity contract investments in other types of retirement plans.

As a practical matter, a surrender fee is incurred if the annuity contract is surrendered before the insurance company has the chance to recoup the expenses of the contract. Generally, such contract surrenders take place when an individual is withdrawing funds from an annuity contract. Surrender fees vary by contract—for some contracts the charge can decline over time, but for others it may remain the same. The charge may also be waived under certain circumstances, such as termination of employment.

As part of their due diligence, plan sponsors should consider surrender fees when evaluating the fee structure of any annuity contract investment in determining whether the annuity contract is a desired investment option under the plan.

 

NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.

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