PLANADVISER - September/October 2018 - 20

trendspotting
Increased
Financial
Education
Demand
Employers say debt
and saving for retirement
are workers' top worries
ACCORDING to 70% of employers, the
No. 1 financial challenge facing their
workers is credit card and other debt.
The International Foundation of
Employee Benefit Plans' " Financial
Education for Today's Workforce: 2018
Survey Results " says other major
concerns for employees are saving for
retirement, paying for their children's
education and covering basic living
expenses. The survey found that these
factors take a toll on the workplace in
the form of stress (79%), the inability
to focus on work (64%), physical health
concerns (36%), and absenteeism
(34%).
When asked to rate the financial
status of their employees, 40% of
employers reported their employees as
being only a little bit or not at all financially
savvy, and 36% said employees
are only a little bit or not at all prepared
for retirement once they reach that age.
More than two in five employers
reported seeing an increased demand
for
financial
education among
employees in the past two years. They
are also answering the call. The report
says 63% currently provide financial
education for their work force, and an
additional 19% are considering it for
the future.
Among the employers that offer
financial education programs, 24%
reported having a financial education
budget this year-significantly more
than the 14% that had one in 2016. An
additional 20% of employers are considering
adding a financial education
budget. More than half that do have
such a budget are planning to increase
it in the next two years. Of employers
with a financial education budget, 20%
are measuring the return on investment
(ROI) of their initiatives, and
another 29% consider measuring ROI in
the future.
The most popular education
methods used by employers that offer
financial education include voluntary
classes or workshops (90%), free
personal consultation services (63%),
retirement income calculators (59%),
Internet links to informational sites
(58%), and projected account balance
statements and/or pension benefit
statements (53%).
The survey found that employers
offer financial education on a wide
variety of topics, from life insurance
and identify theft to student loan debt
and end-of-life planning. However, the
top five most common topics covered
were retirement plan benefits, financial
planning, budgeting, investment
management and retiree health care.
-Rebecca Moore
Methods Employers Use to Educate Workers
90%
Voluntary
classes or
workshops
63%
Free personal
consultation
59%
Retirement
income
calculators
Source: International Foundation of Employee Benefit Plans
58%
Internet links to
informational
sites
53%
Projected
account
balance
statements
20 | planadviser.com September-October 2018
Art by Amy Matsushita-Beal
http://www.planadviserdigital.com/planadviser/september_october_2018/TrackLink.action?pageName=20&exitLink=http%3A%2F%2Fplanadviser.com
PLANADVISER - September/October 2018

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