Question: As a result of a recent educational campaign, we’ve seen an increase in employee usage of our Roth account option — especially among our younger workers. Can you provide any recent industry trends or data regarding Roth account uptake among this cohort?
Answer: According to Fidelity data shared in a recent PLANADVISER article, 21.4% of Gen Z participants now contribute to a Roth 401(k), up from approximately 12% five years ago. Principal Financial Group shared that overall Roth participation rose to 16% over the past year with Gen X (13.9%) and Millennials (15.5%) leading the way. It’s good that you are educating employees on the potential benefit of using a Roth account option. According to the article, despite Roth’s growing popularity, most workers still save through traditional pretax 401(k) contributions.
