#asw2014

By now you may have heard of America Saves Week (www.americasavesweek.org) or have seen the trending hashtag in our industry #ASW2014.   So what is it? and why is it important?  Well to begin we must really understand why this is happening, and why the government and media are finally beginning to understand the urgency in improving America’s financial literacy.  It is apparent that this topic is no longer just for those in the industry, America Saves Week is “sexy” and “mainstream” because it is time for all of us to take control of our financial wellness, know what to do, and in turn lead happier and less stressful lives.

As quoted on their website America Saves Week is:

“America Saves Week is coordinated by America Saves and the American Savings Education Council. Started in 2007, the Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status. Typically thousands of organizations participate in the Week, reaching millions of people.

America Saves is a national campaign involving more than 1,000 non-profit, government, and corporate groups that encourages individuals and families to save money and build personal wealth. Overall management for the campaign is provided by the non-profit Consumer Federation of America (CFA). CFA is comprised of over 270 consumer education, advocacy, and cooperative organizations dedicated to advancing the consumer interest.”

Along with these statistics:

54% said they “have a savings plan with specific goals.”

43% said they “have a spending plan that allows you to save enough money to achieve the goals of your saving plan.”

50% of those not retired said they “save for retirement at work through a 401(k) or other contributory plan.”

41% said that, “outside of work,” they “save automatically through regular preauthorized transfers from checking to savings or investments.”

49% know their net worth.

Why is this important?

As retirement practitioners this opens up two important topics of discussion.

1)  What exactly is the problem?

2)  How can I give my practice a competitive advantage?

The problem highlighted by America Saves Week and choosetosave.org is that we as Americans spend more time thinking about investments and less time promoting “Save Money.”  Further, the general consensus has been to focus on improving investment returns to achieve a successful retirement by allocating assets into riskier investments.  When in reality, if most people reduced their debt and increased their savings they would be on the road to a better retirement outcome (Choosetosave.org resources for better saving).

If we are able to engage employees, to better understand their financial situation. The result will be smarter financial choices and more opportunities for retirement success.  Not only making our job easier but providing high employee satisfaction (as we know, a happy client is the best way to grow our business).

So what can your practice do to help? Simple, education is not longer just a fiduciary duty, it is a requirement in the marketplace.  Provide financial wellness for all employees not just enrollment meetings and participant investment education. Put pressure on us, as an industry, to embrace it and make it a major part of our offering. Ultimately doing this will increase the value we provide and deliver better results.  The combination of expert advice, societal encouragement, and smart tools equals more Americans setting a goal, making a plan and having successful retirement outcomes.

We can help! edu(k)ate is a new tool for retirement plan advisors and employers to increase financial literacy by motivating users with sponsored contests, incentives and awards. By putting financial wellness tools in the hands of qualified financial professionals, we can reduce financial stress, drive down the costs of employee benefits and reduce fiduciary risk.  Learn how you can add edu(k)ate to your services: Schedule a demo.