W2 Issues/Concerns

  • This field is for validation purposes and should be left unchanged.

Blog

Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

Survey Suggests Few Employees Understand Financial Products

Everyone knows that their are programs in place that can help them to save money, be it for college, retirement, or anything in between. However, a new survey reveals that less than one third of workers understand the most common financial products currently available in the market. The study, which was conducted by The Guardian Life Insurance Company of American, asked workers whether they had a “solid understanding” of the following financial products. The results suggested that:

  • Just 32 percent of workers said they had a solid understanding of 401(k) and other workplace retirement plans.
  • 27 percent understood other IRAs, and 24 percent understand Roth IRA
  • 26 percent reported understanding individual stocks and bonds
  • 25 percent understand mutual funds
  • 25 percent have a grasp on pensions
  • 23 percent understand term life insurance
  • 23 percent know about disability insurance
  • 23 percent report knowing about 529 college savings plans
  • 22 percent understand whole life insurance

But what can you, as an HR exec do, to help bolster understanding? The survey suggests that in order to help workers garner a better understanding of their finances — and the financial products available to them — is through one-on-one education.

To back up this thought, research by The Principal Group found that contribution to savings among workers who attended a one-on-one session the organization offered were 9 percent higher than those who didn’t attend the seminar at the one year mark. Further, 92 percent of the employees who were enrolled in Principal’s education program agreed to take a number of positive financial steps, and 80 percent of those workers followed through on those steps.

Do you offer financial counseling services through your company? Let us know in the comments.

Featured BLOGS

  • Five Key Compliance Considerations For Reopening Post-Pandemic

    Earlier this week, we discussed how companies in the early stages of reopening following the pandemic can reopen safely, with an eye towards observing social distancing. In this next posting, we wanted to examine the legal aspects associated with bringing your workers back in the office and what you can do now to ensure a seamless and compliant restart to your usual 9-to-5. Labor and employment attorneys at Cozen O’Connor, as well as the legal brains over at NOLO and some bright minds at Forbes, recently outlined several key tips for consideration when it comes to reopening: Follow state and

  • HR How-to: Observe Social Distancing in The Workplace

    As states start to dig out of the COVID-19 crisis and businesses begin thinking about opening their doors, we wanted to offer up some guidance on how you can safely and responsibly welcome back your workers. Of course, for many companies where staffed were deemed essential early on, it’s been, well, business as usual for quite some time, but these tips and tricks will do wonders to ensure that your workforce remains healthy as the rest of America returns to work. Alter your surroundings: While the pros go back and forth on just how far the virus can travel between people,

Archives