From middle-age caregivers to recent graduates, the idea of reaching retirement — and being prepared for it — is stressing out just about every demographic of the workforce. Despite their different life stages, the one thing they have in common is a desire for additional support.
Whether through programs to help employees pay off student loans (without sacrificing their retirement efforts) or making financial education a core part of a company’s culture, there are a number of proven ways employers can go about helping their workforce prepare for the future.
Read more: 4 ways to rethink workplace wellness
A survey by financial resource Value Penguin revealed that 63% of employees don’t understand how 401(k)s work. This may be why Morgan Stanley at Work’s annual State of the Workplace report found that 92% of employees prioritize retirement planning assistance when considering where to work.
“Many employees are probably still developing a baseline understanding of how to invest in general — many of these employees haven’t gone through financial literacy education in high school or any type of finance training or learning,” says Craig Rubino, head of participant insights, financial wellness and learning at Morgan Stanley at Work. “Employees need to understand the trade-offs. Any actions they’re taking today will have significant consequences on their nest egg down the road.”
Check out why employees are struggling to prepare for retirement — and how organizations can help them feel more confident in their future.