Millennials Who Work at Employee-Owned Companies Are Better Prepared for Retirement

For Immediate Release:

September 24, 2019

Media Contact:

Meghan Pennington

Home News Millennials Who Work at Employee-Owned Companies Are Better Prepared for Retirement

Those Employed At “ESOP” Businesses Have Far More Savings, Expect To Retire Earlier Than Their Peers, Survey Finds

Washington, D.C. – Today, the Employee-Owned S Corporations of America (ESCA) released the findings of new research by John Zogby Strategies that shows millennials working at employee-owned companies are far better prepared for retirement than other working millennials.

According to the survey, two-thirds of millennials working at “ESOP” companies expect to retire at or before age 65, twice the number of millennials at non-ESOP companies. Moreover, 56 percent of millennial workers at ESOP companies had at least six months’ salary saved for retirement, while 66 percent of millennials at non-ESOP companies had no savings at all. These striking findings are particularly important as research increasingly shows millennials generally are not financially prepared for retirement.

“We’ve long known that ESOP companies offer tremendous benefits to their employees: they are more resilient during recessions, better prepare workers for retirement, and create positive workplace atmospheres. What’s striking about this new data is that we can see the true impact on a generation of workers we know has struggled more to feel financially secure, and that working for an employee-owned business gives millennials far more certainty about their financial futures.”

- David Cimpl, ESCA’s Chairman of the Board

Cimpl, who is also CFO of MMC Corp, a 100% employee-owned company headquartered in Overland Park, KS added, “This survey underscores how important it is for policymakers to advance measures in Washington that will create more ESOP-owned companies, and more retirement security for millennials.”

In addition to noting that they have better retirement savings, millennial employee-owners also reported feeling much more positive about their jobs. Eighty-one percent reported having a personal stake in the company’s success and 72 percent said they saw opportunities for their own growth in the business, compared to 41 percent and 50 percent, respectively, for their peers in other businesses.

Other key findings from the survey include:

  • 66 percent of millennial employee-owners expect to be better off than their parents, compared to 41 percent of their peers at non-ESOP companies.
  • 91 percent of millennial ESOP employees felt they had enough information to prepare for retirement, compared to 44 percent of their peers at non-ESOP companies.
  • 46 percent of millennial employee-owners have a current net worth of $50,000 or more, compared to 15 percent of their peers at non-ESOP companies.

This survey was conducted in July and August 2019 and surveyed 402 non-ESOP and 203 ESOP millennial and Gen Z employees. To review the full survey results, click below.

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