PLANADVISER - November/December 2017 - 10

data points
Employers Neglect Financial Ed
A
Yet most employees call learning about personal finance 'important'
ccording to the 2017 PLANSPONSOR
Plan Benchmarking
Report, 50% of employers offer
no financial education of any type to
their workers. This reveals an opportunity
for advisers to increase participants'
satisfaction with their employer,
as, per the 2017 PLANSPONSOR Participant
Survey, 81% of employees say a
retirement plan and accompanying
education is either very important
or important to them, and, 64% say
personal financial education is either
very important or important to them.
" Financial wellness " has become an
industry buzz term. While there is no
standard as to what the concept entails,
general financial education is a widely
accepted component. Again, looking to
the Plan Benchmarking Report, among
the 50% of employers that do offer
financial education, the three most
common topics are: investing basics
and strategies, cited by 42%; saving
and budgeting, cited by 36%; and credit
and/or debt management, cited by 20%.
One-fifth of
respondents
to
the
Participant Survey said they would like
to browse an interactive, online library
that allows for self-paced learning.
The same percentage preferred their
communication to be a periodic newsletter
via email with links to additional
information and actions. Retirement
plan advisers may help plan sponsors
offer these programs by leveraging,
and potentially customizing, available
recordkeeper resources.
Interestingly, though maybe not
surprisingly, participants' preferred
option, when asked how they would
like to receive education, is actually
through advice-28% of employees
indicated they would choose to meet
one-on-one with a financial adviser for
30 minutes. This is an expensive proposition,
but food for thought as advisers
look perhaps to partner with another
provider, if they or their firm do not
offer such a service. -Lee Barney
Source: 2017 PLANSPONSOR Participant Survey
How Important is Personal Finance Education to You?
Very important
Important
Somewhat important
Only slightly important
Not at all important
32%
32%
21%
12%
16%
Source: 2017 PLANSPONSOR Participant Survey
How Would You Like to Receive Education?
Meet one-on-one with a financial adviser for 30 minutes
Browse an interactive, online library that allows for self-paced learning
Receive a periodic newsletter via email with links to additional info/actions
Read a short, printed brochure summarizing three to five actionable steps
Participate in a 90-minute, instructor-led group seminar
Source: 2017 PLANSPONSOR Participant Survey
Financial Education That Sponsors Offer, by Topic
Investing basics/strategies
Saving and budgeting
Credit and/or debt management
Retirement health care costs/savings options
Social Security withdrawal options/strategies
College saving
Home buying
Long-term care
No education offered
42%
36%
20%
19%
19%
15%
10%
10%
50%
Source: 2017 PLANSPONSOR Plan Benchmarking Report
How Important are a Retirement Plan and Education to You?
Very important
Important
Somewhat important
Only sightly important
Not at all important
49%
32%
12%
4%
3%
28%
21%
21%
16%
15%
10 | planadviser.com november-december 2017
http://www.planadviser.com
PLANADVISER - November/December 2017

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