What does this tell us?
Present bias is making people ‘bury their heads in the sand’, ignore their financial future and focus on their immediate needs and wants. This builds a strong case for financial education in the workplace and why it is critical to plan for both now and the future. Basic stuff, but very important.
Indeed, 72% want employers to proactively educate them on planning for their future, and it’s not just about the reasons why, it’s also how. Many people do not know how to financially prepare for their future, and are looking to their employer for proactive guidance on this.
Communication strategies focused on financial education and budgeting for both the now and the future can help, as will providing tools that engage employees to feel more confident about managing their finances. Our MyAspire platform does just this for our clients.