70% of Responding Organizations Provide Retirement or Financial Planning Education to Employees

April 28, 2008

Contact:
Brenda Rood
(262) 373-7756
brendar@ifebp.org

Brookfield, Wisconsin—Retirement and Financial Planning Programs, a new survey published by the International Foundation of Employee Benefit Plans, looks at the types and formats of retirement and financial planning programs that employers offer to their employees. It also addresses the topics covered by formal retirement planning programs, and the programs availability and eligibility requirements.

“In response to the growing need for personal financial planning, over two-thirds of organizations we surveyed offer retirement or financial planning initiatives,” says Pat Krajnak, Director of Reference/Research Services at the International Foundation. “While group meetings are the most popular delivery method for retirement or financial planning education, many organizations are also turning to web-based tools.”

The survey found that more than two-thirds of respondents, 70%, offer some type of retirement or financial planning initiative, education or program for employees or participants. Of those who offer some type of assistance:

• The most popular offering is retirement planning, which is provided by 77% of the respondents. In addition, 60% offer investment education, 39% financial planning and 28% investment advice.
• The most common type of initiative offered is a group meeting with a plan provider, such as a 401(k) vendor, indicated by 67% of respondents.
• Many of the respondents report that they offer computer-based programs to aid their employees. A little more than half, 55%, offer internet access to informational sites, 30% offer Web-based/online tools and 21% offer computer software. Of those who offer a computer-based program, 84% offer a retirement income calculator.

Of those respondents who say they provide some type of planning initiative, 61% offer formal retirement planning programs/workshops specifically geared to help employees prepare for retirement. Of those who offer a formal program:

• Nearly three out of four, 72%, offer these programs/workshops during normal working hours.
• About half, 52%, utilize a combination of in-house staff and outside providers for their formal retirement planning programs/workshops. Thirty-three percent use outside providers only and 15% percent rely on in-house staff only.

Retirement and Financial Planning Programs contains 19 samples, including enrollment guides, workshop materials and outlines, and sample financial calculations. Survey results reflect U.S. and Canadian responses from 351 members, including corporations, public employers, professional service providers and multiemployer benefit plans.

The survey is the latest publication in the Survey & Sample Series. This series was created to provide survey data and samples on a variety of employee benefit topics to benefits professionals who want to compare their plans to others, determine trends and costs, and better manage their plans. Other recent publications in the series are Health Care Benefits: Eligibility, Coverage and Exclusions; Investment Management Services; Retiree Health Care; Newsletters for Employees and Plan Participants; and Public Employee Benefits. For more information, visit www.ifebp.org/surveysample.

Retirement and Financial Planning Programs is 463 pages and is available in print, CD-ROM or e-book. The survey costs $131 (I.F. Members $52). Order a copy online at www.ifebp.org/books.asp?6467 or call (888) 334-3327, option 4. Item #6467.

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The International Foundation of Employee Benefit Plans is a nonprofit organization, dedicated to being a leading objective and independent global source of employee benefits, compensation, and financial literacy education and information.