America is in a financial mess that includes many, if not most, of your employees. According to research published by the Employee Benefit Research Institute (EBRI), the AARP, and Schwab, here’s the shape we’re in:
- Nearly one in five surveyed workers (18%) was very confident in 2008 about having enough money for a comfortable retirement. This compares to 27% in 2007.
- One third (33%) of surveyed workers said they were very confident or somewhat confident about having enough money for a comfortable retirement — despite having saved nothing.
- Nearly half (47%) of surveyed workers in 2008 said they have done some sort of calculation of their retirement needs; 44% of households have changed their savings and spending behavior after performing such a calculation.
- Seven in ten pre-retirees surveyed (71%) said they want to work in retirement — regardless of whether they need to financially.
- Two in five of those surveyed (40%) worry that they’ll have to contribute to their parents’ finances; more than one in four (26%) worry that they’ll have to support a sibling.
- Seven in ten of Americans surveyed (70%) would like their employer to provide professional advice on saving and investing.
- Parents themselves acknowledge they aren’t passing down lessons on financial education, giving themselves a D+ grade for talking to their own kids about managing money.
- Older Americans surveyed say the most important lessons parents can teach their children about saving and investing are:
- Live within your means (69%)
- Begin saving at an early age (65%)
- Only one in four Americans surveyed (25%) say they clearly understand how Social Security works, and only 11% say they understand Medicare.
Here’s the point: Your employees are stressed and need financial education. We encourage HR That Works users to do a “lunch and learn” session using the June 2008 webinar with Dave Ramsey’s business trainer, George W. “Coach” Campbell, OVEREXTENDED – A Special Program on How the Personal Financial Stress of Your Employees is Impacting Your Business.