Fiscal Fitness: How to Keep Employees Educated, Engaged, and Ready for Retirement

When employees struggle with basic financial management, planning for retirement can feel overwhelming—if not entirely out of reach. That’s why financial wellness education isn’t just a perk to offer employees; it’s a necessity for both employee and employer alike.  

At LoVasco Consulting Group, we believe that a financially fit workforce leads to a more engaged, productive, and loyal team. And absent a proactive program to keep employees informed and feeling comfortable with their options, employees can feel overwhelmed and underserved.

Why Employee Financial Wellness Matters for Retirement Readiness

In our experience, employees who are financially stable tend to experience lower stress levels, have better workplace attendance, and are more focused at their jobs. When individuals struggle with basic financial management—paying off debt, building emergency savings, or budgeting their income—long-term retirement planning often takes a back seat. In the worst-case scenario, financial insecurity can at times feel suffocating, leading to absenteeism, disengagement, and even increased turnover.  

Employers who want to support their workforce’s financial well-being must recognize that financial education isn’t just about retirement savings; it’s about creating a foundation for informed decision-making at every stage of life. Companies that prioritize financial education are investing not only in their employees’ futures but also in the long-term success of their organizations.

A Holistic Approach to Employee Financial Wellness

It is our recommendation that employers go beyond simply administering 401(k) plans. In fact, as consultants in the area of retirement planning holistically, we find it important to help employees navigate the entire spectrum of financial decision-making—even on matters that extend outside the traditional confines of the company “retirement plan.” It should include education on topics such as:

1. Budgeting and Cash Flow Management – Before employees can save for retirement, they need to understand how to manage their income and expenses effectively. Teaching basic financial principles, like how to create a budget and set financial priorities, is a critical first step.
   

2. Debt Management – Many employees struggle with credit card debt, student loans, or other financial obligations. Offering guidance on how to strategically pay down debt can free up resources for long-term savings.
   

3. Retirement Savings Education – Employees often find investment options confusing, which can discourage participation. Providing clear, accessible explanations of concepts like pre-tax vs. Roth contributions, employer matching, and risk-based investment strategies can help employees make informed choices with greater clarity and confidence.
   

4. Holistic Financial Planning – Beyond retirement savings, financial wellness training programs should address topics like emergency savings, insurance needs, estate planning basics, and saving for major life expenses (e.g., buying a home or funding a child’s education).

Effective and Continuous Strategies for Employee Engagement

The methods and cadence by which financial education is delivered to employees play crucial roles in how well employees absorb and apply the information. Understanding that true education extends beyond the initial onboarding and orientation, we recommend that employers engage in ongoing and consistent initiatives that might include:

• Periodic educational events – Covering specific and relevant financial topics in a structured, educational format can provide employees with valuable insights without overwhelming them. Our firm schedules educational events monthly, quarterly, and annually—sometimes in person, other times remotely— and opens most of them up to any client employee who wishes to attend. Topics can range from general and basic to specific and advanced.
  

• Tailored company-specific workshops based on precise employee needs – Surveying employees to understand their biggest financial concerns can help employers provide relevant and timely guidance based on real-world, real-time need. Use this input to help guide planning and topic selection so that you’re sure to address what matters most to your specific valued team members.
  

• One-on-one financial consultations – Offering employees a chance to discuss their individual financial situations with a credentialed retirement planning consultant in a private setting allows for personalized guidance. It also presents an opportunity for a potentially intimidated plan participant to ask questions in a safe, comforting environment.
  

• Clear, jargon-free communication – Many employees find financial concepts overwhelming and confusing. Breaking down information in simple, relatable terms helps build confidence and encourages participation. We make it a point to establish an understanding of each employee’s acumen/understanding and position our guidance and content accordingly.

• Video: Not everyone can attend webinars and meetings in real time. Increasingly, we find that recorded webinars, short-form videos, and even video-rich microsites can provide clients with a portal into available financial wellness offerings — accessible 24/7 and on-demand, anywhere life and work may take them.

Crawl. Walk. Run.

We often shepherd clients through a thoughtful, iterative process, which is designed to follow intuitively but also not to overwhelm people with too much too soon:

Measuring Success: Are Employees Better Off?

To understand whether financial education initiatives are being effective, employers should track and periodically review key indicators such as:

• Participation rates in retirement plans – Are more employees contributing to their 401(k) plans over time?
  

• Savings rates and contribution levels – Are employees increasing their contributions as they become more financially aware and secure?
  

• Employee feedback and engagement – Do employees feel more confident about their financial decisions and more bullish about their own personal financial futures?

While financial educational and wellness programs may not yield immediate results, long-term tracking can show how education and engagement efforts are influencing employee financial behavior and overall well-being. We suggest that employers review data like this at least annually to understand the impact their efforts at employee education are having on their employees’ key measurables.

Preparing Employees for the Future, and the Business for Today

The traditional pension model many of us group with has largely disappeared, leaving employees responsible for their own retirement security. Without proper education and guidance, many may not take the necessary steps to ensure financial stability later in life.

Employers who prioritize financial wellness initiatives can help their workforce navigate these challenges. By addressing financial literacy at every level—from basic budgeting to long-term investing—employees can make informed choices that benefit both their personal financial health and their long-term retirement readiness.

As a result, companies will find that their employees are happier, more engaged, increasingly committed to the success of the company, and more likely to stay longer and contribute more. In fact, they might even retire with the company. And that’s a legacy both the employee and the employer can be proud of!