Deals and People December 14, 2012

Security Benefit Adds to DC Team

December 14, 2012 (PLANSPONSOR.com) – George M. Beale and Jeffrey D. Kayajanian have joined Security Benefit Corp.'s defined contribution (DC) group. 
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As field vice presidents serving the western part of the country, Beale and Kayajanian work with advisers who sell and service defined contribution plans in the Employee Retirement Income Security Act (ERISA) marketplace with a focus on 401(k) plans.

The addition of Beale and Kayajanian is part of Security Benefit’s initiative to build an independent distribution structure focused on adviser business models and affiliations. 

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Beale has more than 20 years of experience in sales and regional sales management of 403(b), 457 and 401(k) plans, working previously at Securities America, MetLife, ING and Security First Group. Based in Denver, Beale works with advisers in the Midwest and Rocky Mountain states, from Montana south and east to Louisiana, including Texas. He holds a bachelor’s degree in finance from Arizona State University.

Kayajanian, also with 20 years of experience, brings extensive knowledge of 401(k) and annuity sales. Formerly a divisional vice president at The Hartford’s retirement plans group, Kayajanian has also served as national sales manager at State Street Research and was a regional vice president for ReliaStar Retirement Plans. Before that, he was affiliated with AXA/Equitable Annuities and Guardian Life.

Based in Solana Beach, California, Kayajanian supports advisers in Arizona, California, Oregon, Nevada, Utah and Washington. He holds a bachelor’s degree in business administration from California State University at Fresno, and a master’s degree in business administration from Pepperdine University.

Security Benefit Corp. provides retirement savings and income vehicles for pre- and post-retirees.

—Jill Cornfield

Benefits December 14, 2012

Millennials at Risk for Low Savings

December 14, 2012 (PLANSPONSOR.com) – Millennials need help to participate in employer-sponsored retirement plans, according to Wells Fargo.
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When they were not automatically enrolled, just 13.4% of Millennials participated in employers’ plans—a drop of 22% in the past year. The rate of participation at companies that auto-enroll employees was nearly five times that, data from Wells Fargo Retirement found.

Among those who do contribute, Millenials’ savings rates are dangerously low, with almost half (47.3%) putting away 3% of salary or less. This is a modest improvement from last year’s 49.7%, and comparable to the members of Generation X (32.8%) and Baby Boomers (24.9%) who contribute at the same rate.

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“Getting into the plan is the first step, but saving at a rate of 3% or less isn’t going to get them [participants] to a financially viable retirement,” said Laurie Nordquist, director of Wells Fargo Institutional Retirement and Trust.

The percentage of Millennials doing all three key things to save for retirement—participating, contributing at an adequate rate and being appropriately diversified—is just 5.2%, down slightly from 5.5%.

Most of Millennials’ participation can be attributed to automatic features in company plans, Nordquist added, suggesting that automatic escalation may be needed to encourage higher savings rates.

Recognizing and responding to Millennials’ attitudes and behaviors can also help direct their focus away from short-term savings concerns and toward retirement. Nordquist suggested reaching out to younger participants through “an expanded social media effort, enhancing delivery preference options available to participants, increasing the frequency and delivery options for webinars, and using QR codes for smart phones.”

Additional findings include:

  • All generations are seeing a gradual increase in the use of managed investment products. Millennials are the highest, at 85.8%;
  • Millennial usage of managed investments is up 2.9%, compared with 4.3% for Gen X and 4.7% for Boomers; and
  • Millennials are the most frequent users of Roth 401(k) contributions, with 14.3% contributing Roth dollars when the feature is available—a year-over-year increase of 16%—compared with 9.4% for Gen X and 5.8% for Boomers.

This data is based on analysis of 1 million eligible Millennial participants in retirement plans that Wells Fargo administers.

 

—Sara Kelly  

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