Weekly News via Email
   Set as homepage | Add to favorites | Customer Service | Subscribe Now | Place an Ad | Contact Us | Sitemap Tuesday, 02.20.2018
News Archive
Su Mo Tu We Th Fr Sa
 1  2  3  4  5  6
 7  8  9  10  11  12  13
 14  15  16  17  18  19  20
 21  22  23  24  25  26  27
 28  29  30  31
Online Extras
Site Services
Around Bend
Outdoor Fun
Travel Info
Shop Local

Members Of

Poll: Today's Live Poll
Email to a friend | Print this | PDF version | Comments (0 posted) 
  Blogger |   del.icio.us |   digg |   newsvine

Oct 05,2007
Employers have stake in workers' financial literacy
by Michael Kinsman

Some co-workers in the office were just talking about their 401(k) investments and how much money they had lost in the stock market's recent upheaval.

I listened to what these educated and intelligent people were saying and my jaw dropped. I realized how little they knew about investing.

I shouldn't have been surprised by that. When it comes to financial literacy, the citizenry of the world's biggest economic engine seems to know very little.

Although this problem has been around for decades, it has been exacerbated over the 25 years as employers have increasingly turned over retirement saving and investment decisions to individuals.

It's a festering problem in the workplace because of the economic pressures individuals have today that make their jobs and job security more important than ever.

Yet, most companies seem only mildly concerned about.

Dallas Salisbury, president and chief executive of the Employee Benefits Research Institute, has been doing his part to get employers more involved in providing financial education for workers.

EBRI recently reported that only 15 percent of workers rank their pensions as the most important or second most important financial issues they face. Health benefits are far and away their biggest concern.

Adding to that is the belief by many individuals that they will receive fully funded health care and more than enough income once they retire. The prevailing attitude is that "it will all work out."

That's tantamount to believing that your best chance for financial security in life is to win the lottery.

Salisbury says that U.S. workers often lack financial literacy skills, nor do they see interested in developing them.

So why should employers be concerned?

It is very evident that the health and welfare of U.S. workers is dependent upon their employers and, in turn, employers count on having the financial well-being of their workers.

The largest investment workers will make in their lives will probably be their homes. Look at the mortgage crisis that is occurring now and think back about how many employers ever offered advice about subprime mortgage loans and the problems they might cause some day.

That matters to employers because employees bring their financial problems to work with them. And, they bring them every day.

When individuals don't have adequate health care coverage and they have a family emergency, it can spill over into the workplace.

And, how many people know workers who are staying on their jobs past retirement age because they need the health care or they face a shaky financial future in retirement so they are forced to keep working.

None of this contributes to a healthy workplace. Employers may not like filling the role of financial educator, but it is in their best interests. And, they need to do it in a way that gets the attention of their employees.

© Copley News Service
1641 times read

Related news
Healthy, happy workers benefit the bottom line by Michael_Kinsman posted on Dec 21,2007

Flexible employers will thrive in shrinking labor pool by Michael Kinsman posted on Mar 16,2007

Help Is on the Way for 401 (k) Investors by bendweekly posted on Feb 09,2006

Demise of pension plans spells net loss for workers by Michael_Kinsman posted on Jul 20,2007

Time has come to address soaring health care costs by Michael_Kinsman posted on Jun 29,2007

Did you enjoy this article? Rating: 5.00Rating: 5.00Rating: 5.00Rating: 5.00Rating: 5.00 (total 17 votes)

Market Information
Breaking News
Most Popular
Most Commented
Featured Columnist
Horoscope Guide
Aquarius Aquarius Libra Libra
Aries Aries Pisces Pisces
Cancer Cancer Sagittarius Sagittarius
Capricorn Capricorn Scorpio Scorpio
Gemini Gemini Taurus Taurus
Leo Leo Virgo Virgo
Local Attractions
Bend Visitors & Convention Bureau
Bend Visitors & Convention Bureau

Mt. Bachelor Resort
Mt. Bachelor Resort

Les Schwab Ampitheater
Les Schwab Ampitheater

Deschutes County Fairgrounds
Deschutes County

Tower Theatre
Tower Theatre

The High Desert Museum


Deschutes County

  Web    BendWeekly.com
© 2006 Bend Weekly News
A .Com Endeavors, Inc. Company.
All Rights Reserved. Terms under
which this service is provided to you.
Please read our Privacy Policy. Contact us.
Bend Weekly News & Event Guide Online
   Save the Net
External sites open in new window,
not endorsed by BendWeekly.com
Subscribe in NewsGator Online
Add to Google Add to MSN Add to My AOL
What are RSS headlines?