Financial Education Improves Retirement Savings

Employees with access to financial and retirement education have less stress, more savings and more confidence than those without access, a Ramsey Solutions survey found.

Forty percent of workers, however, are not offered financial education. Seventy percent of those who have no retirement savings are not offered financial education.

The most common sources that Americans rely on for retirement education are their employers and their parents, each cited by 35% of respondents. This is followed by family and friends (32%). Workers who cited their employers as their first or second source have more money saved than those who rely on family or friends. In addition, people who are offered financial education at work say they feel positive emotions like excitement (49%) and optimism (40%), while those who do not have financial education say they feel anxious (47%) and afraid (40%).

Forty-seven percent of those who have saved between $250,000 and $999,999 say their employers are a source of financial education. Ninety percent of Millennials and Gen Xers said they would be comfortable talking with their employer about retirement planning. Half of Baby Boomers say their employers do not offer retirement education, compared to 39% of Gen Xers and 33% of Millennials. Among lower-income workers, 64% are not offered retirement education, compared to 43% of middle-income workers and 29% of highly compensated workers.

“Educating employees on how to take control of their money and increase their retirement savings not only puts employees in a better financial position, but it also helps them reduce money-related stress so they can be more effective at work,” says Chris Hogan, a spokesperson for Ramsey Solutions.

The findings are based on a survey of 1,016 people. The full survey can be viewed here.