Mounting evidence shows education can indeed help employees make better decisions to build retirement savings, including a recent survey by the TIAA-CREF Institute and North Carolina State University (NCSU).
Many companies offer financial education, but few measure whether the programs actually help employees secure their financial futures, particularly with regard to retirement savings. The reasons for sponsoring it are becoming more compelling, however. "Financial education is important, it's effective, and it can affect the well-being of your workers," asserted Robert Clark, professor of economics and business management at NCSU and one of the study's authors. Other advocates state the case more aggressively, cautioning that employees, particularly soon-to-retire Baby Boomers, may one day sue employers for failing to provide adequate financial education.