Bank of America Merrill Lynch Study: Employer Education Sparks Rise in Financial Literacy

During the last year, characterized by heightened levels of economic volatility and uncertainty, U.S. employers devoted significant resources to improving the financial literacy of employees, according to the annual nationwide Workplace Benefits Report issued by Bank of America Merrill Lynch.  The survey included results from over one thousand companies of all sizes and types and focused on the role of companies generally, and human resources professionals specifically, in providing financial education to increase the level of financial capability among their workers.

Among the most interesting findings identified in this year’s report is the extent to which financial information, tools and resources are becoming more personalized for corporate employees.  Access to one-on-one financial counseling is now offered by some seventy percent of employers, while approximately half of the respondents reported that they offer financial education tools, as well as online resources.

Consistent with the rise of financial literacy as a topic on the local, state and national levels in the U.S. and in many other countries, employers responding to the survey indicated a strong desire to increase the resources they dedicate to improving the financial education and capability of their employees.  Specific areas on which they focused in their responses include the following:

• Forty percent of companies indicated their desire to begin providing more employee guidance with respect to their retirement planning;

• More than half of companies currently offer either consulting opportunities or part-time work structures for employees who are approaching the age of retirement to help support their financial affairs later in the life cycle; and

• Approximately forty percent of employers target and assist employees nearing retirement to educate them on options relating to how best to handle monies in their 401(k) plans.

Given the relatively high incidence of financial illiteracy in the U.S., combined with the amount of time Americans spend at work, employers are very well positioned to provide critical financial education to employees that would serve to increase the financial capability of individuals and families in communities throughout the nation.  And based on the Workplace Benefits Report issued by Bank of America Merrill Lynch, it appears that employers are in fact stepping up and experiencing success with respect to this very important responsibility.