Employers Investing in Efforts to Educate Workers on Saving Business Insurance Online (09/30/02) Vol. 36, No. 29 p.3; Prince, Michael
Stock market declines and workers' diminishing retirement accounts have pushed employers to offer employees more investment education. One survey shows that 89 percent of employees say they would find personalized financial planning advice from their employer helpful. Today's tight economy has employers worried that workers will shift their investments out of 401(k) plans and other retirement accounts, and some employers assert that part of any retirement package should be investor education. One expert says that of the three levels of investor instruction--education, guidance, and advice--employers are more likely to provide employees with education because of the liabilities associated with providing investment advice. Experts say that workers need proper investment education and guidance and note that majorities of employees remain misguided and under the false impression that the returns on their retirement accounts will continue to be high. Some experts argue that investment education should be provided to employees through person-to-person interaction, rather than Internet channels, which are less costly, but do not guarantee employee participation.