Millennial workers who change jobs are more likely to retain access to employer-sponsored retirement plans than their baby boomer counterparts, according to a new study from the Employee Benefit Research Institute (EBRI). The research, which compared eligibility patterns of workers born between 1980 and 1984 with those born between 1957 and 1964, found that younger workers fared better overall despite frequent job changes.
Both groups held an average of about 3.5 jobs by their early 20s, rising to more than 10 by age 43. Job transitions often disrupted retirement plan eligibility: more than 30% of participants in both generations either gained or lost access to an employer-sponsored plan when switching employers.
However, by ages 39 and 40, over 85% of those born between 1980 and 1984 had been eligible for a retirement plan at least once, compared with just over 75% of the earlier cohort. The findings suggest that structural changes in the workplace, including broader adoption of automatic enrollment and shorter service requirements, may be helping younger workers maintain coverage.
Income played a significant role in job mobility. Among boomers, lower-income participants changed jobs 26.2 percentage points more frequently than higher-income peers. That gap narrowed to 18.4 percentage points among millennials, indicating some progress but persistent disparities.
Education and earnings also shaped how consistently workers held retirement plan access. Those with above-median income and tenure were eligible for a plan for more than twice as many consecutive years on average as those below the median. Workers with an associate degree or higher maintained eligibility for roughly 1.5 times as many consecutive years as those with a high school diploma or less.
“Changing jobs is a normal part of many workers’ career paths, but it can also be an important turning point for retirement savings,” said Craig Copeland, director of wealth benefits research at EBRI. “The findings suggest that younger workers have had more opportunities to be eligible for a retirement plan after switching jobs compared with an earlier generation.”
Copeland added that job changes remain a critical moment when workers can lose momentum. “Plan design, policy and education efforts that help workers maintain savings, consolidate accounts and continue contributions can play an important role in improving retirement outcomes,” he said.
The report highlights provisions such as shortened service requirements and automatic enrollment measures introduced under the SECURE 2.0 Act as potential factors in improving access for future generations. Advisors may want to consider how these trends affect client planning, particularly as the $84 trillion wealth transfer looms and younger heirs may need guidance on consolidating retirement accounts.
Separately, a BlackRock survey found that 68% of workers feel on track for retirement, but savings replace only half of expected income, underscoring the importance of maintaining plan access. Meanwhile, Edward Jones recently added JPMorgan and T. Rowe Price to its retirement platform, targeting the small-business 401(k) market.
