The problem is that many of today s 110 million workers have difficulties managing their money and are not saving for retirement. One result is that nearly 50 million workers have yet to begin saving and investing through an employer-sponsored retirement plan. Thus, it will take more than simply selecting the right channels to motivate workers to become genuinely well prepared for a successful retirement. Perspectives on the Problem Smart employers should use workplace financial education to improve the bottom line.
Financial education improves workers personal financial wellness.
Increases in personal financial wellness result in improvements in the bottom line through reduced absenteeism, work time not wasted on money matters, and a number of other cost factors. Instead of offering workers narrowly focused retirement education, employers should provide comprehensive financial education that helps workers overcome problems and challenges to fully funding their retirement plans. It is profitable to do so. This measurement sets the bar too low. This measurement sets the bar too low.