How Public Pensions Can Support Participants’ Retirement Readiness Through Financial Education

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• On: 11/30/2023 13:20:38
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By: Lizzy Lees, NCPERS

Picture this: The U.S. is gearing up for Peak 65, a momentous time where a record-breaking wave of Americans will hit that retirement milestone we dream about for much of our working lives. With over 10,000 daily 65th birthday celebrations and a projected surge to over 12,000 daily by 2024, retirement planning—and the financial anxiety that surrounds it—is on many of our minds.
 
With high levels of inflation and housing affordability at its lowest point in decades, financial stress is having a real impact on the American workforce and retirees. Eight-five percent of Millennials and 69 percent of workers aged 45 and older worry about money every day. Nearly two-thirds of working Millennials and 62 percent of older workers with workplace retirement plans fear they won't be able to grow their retirement savings to the level they hoped, according to new Schroeders data.
 
Retirement should be something to look forward to, not feared. A pension is just one piece of the retirement planning puzzle, and it's crucial to help public sector employees of any age understand their benefits and develop the skills needed to effectively plan for a secure future and feel confident in their decision-making.
 
While each organization's approach to member education and engagement is different, NCPERS is here to help. Earlier this year, we launched NCPERS Retirement Security SmartBrief. This free, weekly newsletter features easy-to-read summaries of the latest news on issues impacting our financial wellbeing in retirement. Topics range from financial literacy resources, pension news, market trends, and more. We encourage you to share the signup link with your organization's staff and members so they can take advantage of this free educational resource as they plan for their own retirement.
 
At the 2024 Pension Communications Summit, held January 21-22 in Washington, DC, several sessions will focus on effective communication with members to support ongoing education and engagement efforts. During the “Tips for Communicating with Members at Various Life Stages” session, SBCERA's Olivia Applegate will share strategies for effectively communicating with members of all ages. We'll also have a session on breaking down complex topics for all audiences to help your team communicate clearly about complicated subjects such as investment strategies or pension administration. View the agenda and register now for early-bird pricing.
 
NCPERS pension fund roundtables are also a great place to learn how other organizations are approaching member education around financial wellness and retirement planning.
 
Understanding money isn't just about balancing a budget; it's about empowering ourselves, regardless of age or generation, with the know-how to navigate life's financial complexities. That confidence in our ability to handle financial decisions, known as self-efficacy, forms the backbone of financial capability. It's more than just knowing the ins and outs; it's about processing information and taking action. Research by the Consumer Financial Protection Bureau underscores this link between financial skill and self-efficacy, highlighting how they shape our financial behavior. A complete understanding of one's retirement benefits combined with ongoing financial education can help public sector workers be ready to celebrate—not fear—their own retirement milestone.