Helping Employees Be Smart With Their Money

Nowadays, many people look to their employer for advice on their finances and retirement planning; they've even come to expect it. Employers who offer such advice and education can foster higher satisfaction and trust among their people, and help ease their employees’ financial stressors. 

Here are some considerations for helping your people grow their financial and retirement knowledge.

Ways to Provide Information to Employees

To help provide financial education, employers should consider providing the following resources for their people:

• Host workshops on topics such as personal budgeting, credit managing, estate planning, estimating retirement savings and investment basics.
• Hire experts to provide detailed information on complicated finance issues, such as a professional speaking to employees about creating a will.
• Organize lunch-and-learn seminars about financial topics.
• Provide one-on-one counseling to discuss monthly budgeting and contributions to a 401(k).

Benefits of Financial and Retirement Assistance

• Employees have an increased appreciation for their retirement benefits and a higher satisfaction for their employer.
• Employees have the knowledge to take more control of their finances, including budgeting, managing investments and increasing their savings, which can decrease stress about money and the future (creating happier, potentially more engaged employees).
• Employees feel more empowered and in control of their future and well-being.

Cautions for Providing Financial and Retirement Advice

When giving out financial advice to your employees, ensure that they know it is simply that – advice. Caution them on making wise investment decisions and encourage them to discuss those decisions with a financial professional. Look into all Department of Labor fiduciary rules or consult with legal counsel before engaging in financial advice.

Selecting a 401(k) Vendor

In addition to the assistance that you can bring to employees personally, you can also utilize the resources that your 401(k) vendor can provide.

Therefore, it is extremely important to select a retirement vendor who can help plan participants make investment decisions. When selecting a vendor, look for companies that have the following resources: 

• Online retirement-income calculators
• Assistance in creating a customized portfolio
• Education resources for employees on potential retirement concerns and ways to overcome them