The workplace is undergoing a transformation, and one of the most exciting trends is how forward-thinking leaders are taking steps to ensure their employees retire wealthier. According to data from the Investornomy Retirement Investment Education Department, a growing number of leaders are embracing innovative strategies to improve their workforce’s financial future. This article will explore how these leaders are making a difference, and why it matters so much.
One of the most impactful actions workplace leaders are taking is bringing in independent retirement experts to guide their employees to make better retirement investment choices. Rather than relying solely on their workplace wealth management providers, these leaders offer their teams access to unbiased, expert advice that helps optimize their existing retirement savings.
The beauty of this approach lies in its simplicity: employees don’t need to increase their contributions, they simply learn how to make smarter investment decisions with their current retirement savings. By tweaking investment strategies, many participants are on track to accumulate significant wealth over the next 15 to 20 years, potentially becoming millionaires.
This reflects a broader truth highlighted by Warren Buffett, who famously said, “The best investment you can make is in yourself. The more you learn, the more you’ll earn.” By investing in financial education, workplace leaders empower their employees to make informed decisions that can drastically improve their financial futures.
Dr. Linda Pajoel, CEO of Investornomy, emphasizes this point:
“When a workplace leader invests in their workforce’s financial future, everyone wins.”
Consider the example of David Ige, a 38-year-old employee at a mid-sized plumbing company. Before attending his company’s retirement investment workshop, David assumed he needed to drastically increase his retirement contributions to secure his financial future, because the return on investment of his current retirement savings are below the inflation rate. However, after participating in a seminar led by an independent expert, he learned how to adjust his portfolio to take advantage of low-cost and diversified index funds. By making these small but meaningful changes, David is now on track to retire with over $2 million, all without contributing more than he already does.
David’s story is just one of many illustrating the power of independent-expert-led financial education programs in the workplace. Employees leave these sessions equipped with the knowledge to make informed choices, and the results are often transformative.
A common pitfall for some companies is relying on their wealth management providers to offer retirement investment advice. While this may seem convenient, it often leads to a conflict of interest. Providers have a vested stake in employee decisions, which can influence the guidance they offer.
Another mistake would be bringing in general financial advisors who are not investment experts. All investment strategies are not equal. Investment experts are more likely to provide you with superior investment strategies compared to a general financial advisor.
The solution? Independent, unbiased investment experts who can offer employees clear, impartial guidance on the best investment strategies for retirement planning. These experts have no financial interest in the decisions employees make, giving workers the clarity and confidence to take control of their financial futures.
By following these steps, leaders can help their employees take meaningful control of their financial futures.
While the benefits of employer-provided retirement investment education may seem self-evident, there’s also solid research to back it up. A study conducted by Robert L. Clark and colleagues, published in the Journal of Financial Literacy and Wellbeing, found that retirement investment education programs offered by employers significantly improved employees’ financial literacy. The study showed that those who attended these sessions were more likely to adjust their retirement strategies in beneficial ways—and they maintained these improvements even a year later.
This long-lasting impact demonstrates the power of education when it comes to helping employees secure their financial futures.
Some people believe that workplace leaders prefer employees to remain financially insecure, fearing they might become less dependent on their jobs. However, this couldn’t be further from the truth. In reality, financially secure employees are more productive, loyal, and satisfied in their roles.
Leaders who provide financial education are not just investing in their employees—they’re also boosting the long-term success of their organizations. By empowering workers with the tools to achieve financial independence, they foster a happier, more engaged workforce.
Not only do employees benefit from financial literacy programs, but companies also stand to gain. Financially secure employees experience lower stress levels, take fewer sick days, and are less likely to experience burnout. Additionally, when employees feel supported in their financial goals, they are more likely to remain with the company long-term, reducing turnover rates and associated hiring costs.
A financially empowered workforce is a productive one, making this initiative a win-win for both employees and employers.
This trend is not limited to one region. Workplace leaders from across the globe—including the United States, Canada, the United Kingdom, Australia, and the UAE—are increasingly recognizing the value of offering expert retirement investment guidance. As more leaders embrace this practice, the demand for independent retirement education services is growing.
At Investornomy, we’ve seen firsthand the positive effects of this movement. The companies we work with are not only helping their employees, but they are also cultivating environments where financial well-being is prioritized, leading to stronger, more resilient organizations.
The movement to support employees’ financial futures is not just a trend—it’s a responsibility. Leaders who provide independent retirement investing education are making a powerful investment in their teams, ensuring that their employees can enjoy a secure and prosperous retirement. The time to act is now. By taking the simple step of offering financial education, leaders set their employees on a path to long-term wealth and well-being.
If you’re a workplace leader, now is the time to ask yourself: What are you doing to help your employees retire wealthier?
—Click here to learn how to implement independent retirement investment education at your workplace!
