Half of employers in a recent survey have seen an increased demand from employees for financial education in the past 5 years, and 68 percent now offer some kind of financial education to their employees/plan participants.
Preliminary findings of the survey report, “Financial Education for Today’s Workforce: 2014 Survey Results,” show that there is a growing need for employer-sponsored programs that help employees “navigate the often complex systems required for retirement planning and financial security,” stated the International Foundation of Employee Benefit Plans, which conducted the survey.
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“Employees and plan participants share many uncertainties when it comes to their retirement, and we are encouraged to see a growing number of employers offering beneficial financial education programs in the workplace, but there’s room for improvement,” said Michael Wilson, CEO of the International Foundation.
“… [W]e want to help raise awareness for all employers on the importance of providing not only critical benefits, but education on how employees can plan ahead to help manage their money in order to make their retirement dreams a reality.”
Employers understand the importance of providing employees with tools to make sound financial decisions, according to the survey. As a result, employers are offering financial literacy workshops, retirement income calculators, and personal consultation services to employees.
Nearly 400 International Foundation member organizations in the United States and Canada participated in the survey, which found that about half of the organizations offer benefits dealing with literacy and retirement security education. The survey also found that close to two-in-five organizations feel responsible for educating workers on pension and benefit options, encouraging them to save for their retirement, and helping them become financially literate managers of their money.
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“There is an obvious need for employees to become better acquainted with their finances and prospects for retirement,” said Julie Stich, director of research at the International Foundation. “The survey found that only 18 percent of employers consider their average employee at retirement age to be very or extremely prepared for retirement. Offering educational opportunities to participants is a way for employers to give their employees the tools and confidence to plan for their retirement.”
Meanwhile, a recent study from Genworth found that less than half of surveyed adults actively seek out financial knowledge. The study found 45 percent of individuals pointed to the complexity of financial products as a roadblock, while 37 percent and 18 percent, respectively, cited a lack of time and uncertainty about how to get started.