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Common Questions about "Financial
Security in Later Life" |
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Why
offer “Financial Security in Later Life,” a worksite financial
education program, offered by the University of Minnesota Extension
Service? |
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Why
offer “Financial Security in Later Life” worksite education
to my employees?
Providing comprehensive, worksite financial education will help:
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Increase productivity and enable employees to focus on work activities.
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Provide an ROI of up to 3:1 (conservatively estimated) for your business as a result of increased productivity and reduction of direct costs.
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Increase your ability to attract and retain satisfied employees.
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Improve workforce planning as a result of employees being financially secure and planning ahead for retirement.
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Reduce financial stress levels and overall stress levels for employees.
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Manage your risk of liability as a plan sponsor and meet ERISA Section 404(c) requirement of providing employees with “sufficient information” regarding investment alternatives to make informed decisions.
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Worksite financial education also provides equal access to trustworthy information for individuals of all socio-economic levels, including audiences not usually targeted by profit-driven products and financial planners.
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Individuals who plan now for later life are also less likely to place increasing demands on limited public resources in the future, including government sources of income assistance, health care, and social services.
More about the benefits of financial education |
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Why is financial education
an issue? How did this become a need?
As retirement plans have changed from defined benefit plans to
defined contribution plans, employees of all ages have become increasingly
more responsible for their financial security. And yet, most are
not adequately prepared. |
The statistics are staggering . . .
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Personal savings are at the lowest point (-0.5) since the Great Depression; 40% of workers indicate they are not saving for retirement and only 25% are “very confident” of having enough money to live comfortably in retirement.
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More than one in five Minnesotans (24%) ages 40-69 are projected to have insufficient resources for basic living and long term care in later life.
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One-third of employees (ages 51-61) have not begun to think about retirement.
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Over 70% indicate they are not confident in their ability to make the right financial decisions for themselves and their families; 56% of workers with access to 401(k) retirement plans indicate a need for assistance in deciding how to allocate their plan assets.
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One in four (25%) employees are suffering serious financial distress that affects their productivity.
In 2011, baby boomers will begin turning 65. The Minnesota Legislature, the Department of Human Services, and the Minnesota Board on Aging have identified the need to increase personal responsibility for retirement planning and long term care risk protection planning. (Graphic: stopsign)
“Financing Long-Term Care for Minnesota’s Baby Boomers,” a report to the Minnesota legislature (January 2005) by the Department of Human Services, summarizes the need to increase personal responsibility for retirement planning and long term care risk protection planning:
“Generally, as a society, we spend more time planning annual vacations than we do our retirement and old age, which can last for 30 years or more. In order to counteract the built-in reluctance of individuals to plan for the future, there needs to be universally available information and education on retirement and long term care planning opportunities.”
“Individuals should make plans for the type of retirement they want and how to achieve their goals. There are excellent resources available to support this type of education. These include curriculum developed by the University of Minnesota Department of Family Social Science ….”
The report goes on to state:
“The plan that the state develops should include a retirement and long-term care planning campaign to reach all workers between 40 and 70 in the state…”
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Minnesota statistics reinforce this need for financial education.
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The number of older people (85+) in Minnesota has been growing steadily and that growth will accelerate in the next 30 years as the baby boom generation ages. As a result, the number of people needing long term care will triple between 2000 and 2050.
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The 2001 Survey of Older Minnesota indicates that the median per capita income for persons 65+ was $16,800; 56% of married seniors had total assets (excluding housing equity) below $50,000, and 77% of unmarried seniors had assets below $20,000.
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In 2004, long term care accounted for 49% of Medicaid spending in Minnesota and 34% of Medicaid spending in the United States.
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Fifteen years ago the assistance provided to the elderly by unpaid family members was 97% of all care provided; now that has dropped to 91% of all care. As the female labor force participation continues to increase and the average family size decreases, fewer family members are available to care for the elderly; it is expected this decline will continue.
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To read a more complete overview of literature, go to http://www.reeusda.gov/financialsecurity |
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Why consider the University
of Minnesota Extension’s educational workshops rather than
a vendor who can provide specific products or do so without charging? |
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We are trained educators with expertise in family financial management and as such, we provide:
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A more holistic, life planning approach, including the financial, as well as the emotional and social facets of later life security,
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Research-based, unbiased, trustworthy information with proven resources at your worksite,
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Decision-making criteria and non-biased advantages and disadvantages of various products,
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Information regarding financial products without selling or promoting any specific products related to insurance, estate planning, savings and investment products, and
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A wide array of resources through our connections to other universities, collaborating agencies, and online information.
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Our competitors include:
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Financial planners who sell financial services and/or products - They are focused almost entirely on the financial perspective of retirement planning and work in the focused field of investment planning every day.
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Employee benefit providers who provide very specific, targeted information about a narrow range of already identified products that the company has purchased.
Because they get paid through the product that has been or will be purchased, both of these competitors typically provide information free of charge to the employee. They also typically sell products only from the company or companies they represent.
More information about us |
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What educational
workshops are offered?
Eight workshops are offered. Each includes PowerPoint presentations,
handouts, evaluation tools, and resource lists/website links. More information about our products.
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Take the Road to Financial Security in Later Life
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Mapping Plans for Retirement Savings
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Constructing the Road to Retirement Investment Decisions
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Pension Plan, IRA, and Mutual Fund Basics
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Who Gets Grandma’s Yellow Pie Plate?
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Critical Conversations About Financing Long Term Care
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The Minnesota Health Care Directive
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Organizing Your Important Papers
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Which
workshop should be offered first?
We suggest offering the “Take the Road to
Financial Security in Later Life” workshop; this workshop
sets the stage for additional sessions. However, the workshops are
flexible; they can be offered in the order that best meets the needs
of your company and employees.
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What age of employees should
attend?
While many people begin too late, it is never too
early to begin retirement planning. Therefore, we are “calling
all ages” to begin planning for a financially secure later
life. We have found many employees in their 20’s and 30’s
are very interested in saving for their future, creating health
care directives, and are involved in addressing family inheritance
and long term care issues. |
What does it cost?
A one-hour workshop costs $300.00; this includes
handouts and materials for up to 25 participants.
There is a 10% discount when three or more programs
are contracted and conducted within a year of the first program
date. |
We don’t have 25
employees; what other options do we have?
You might choose to cooperate with other companies
in your area to jointly sponsor the program(s) and share the related
costs. Smaller companies may also opt to invite spouses/partners
to attend; this will help maximize the benefits for the employee
and their family.
While 25 is the maximum number of participants for
each workshop, the session can be held with fewer people. However,
the cost will remain $300; therefore, including additional participants
lowers the cost per person. |
We have shifts of workers
24/7; can you serve all employees?
We are very willing to work with companies to ensure
that the workshops are available to all employees, regardless of
the shift they work. |
What are our options if
we have more than 25 employees?
In order to adequately respond to questions and
maintain the quality of the educational experience, sessions are
limited to 25 employees per workshop. There is a 10% discount when
three or more programs are contracted and conducted within a year
of the first program date. This includes scheduling multiple sessions
of the same topic to accommodate all employees at your company.
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Employer
Responsibilities |
We’re already
too busy and we don’t have an HR department; what do I have
to do?
You can leave most of the work to us! We provide
ready-to-use registration and promotional materials. We also conduct
the workshop, provide program and evaluation materials, and summarize
the evaluation results.
Contact the Family Resource Management educator serving your area
to get started. We’re ready to help you get started!
Find an educator near
you |
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Will I need
to do anything following the workshops?
No, not unless you wish to schedule additional workshops.
We will provide evaluation materials, compile the evaluation results
following the workshop, and provide a summary to you. |
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Can a one-hour workshop really make a difference? |
Yes, one-hour can provide workers with user-friendly
resources and the understanding and motivation to know where to
begin to:
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Plan,
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Take action, and
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Evaluate.
Research indicates that personal savings tend to increase with
each additional hour of financial education (up to 12 hours).
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If a participant attends all eight of the workshops, they will take one or more of the following actions:
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Plan now for later life events including:
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Make more informed decisions about the mix of financial products in their retirement plans.
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Understand how much money they need to save to maintain their current lifestyle in retirement.
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Identify future income needs and build multiple income sources (savings and assets) to meet later life needs.
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Identify and communicate strategies to manage the risk of long term care.
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Create up-to-date estate plans regarding non-titled property.
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Communicate end-of-life health care decisions in a written legal tool.
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Organize their financial records.
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Initiate discussions with aging parents about the parent’s estate and long term care plans.
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How will I know
if my employees have benefited from the workshops?
The Extension Educator will summarize the end of
workshop evaluations and share this information with you in a timely
manner. Additionally, the educator may follow-up with participants
to determine if they made decisions or took actions based on the
information provided. Results of follow-up evaluations will be shared
with the employer as well. All respondent information will be kept
confidential. |
Are there
other options for providing this education? |
We are not able to offer
educational workshops at this time. Is there another way to help
my employees access these resources?
You can also provide “on-your-own” options
to your employees by:
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Purchasing educational materials using quantity discounts
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Purchasing copies for a company library or resource center
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Allowing work time and computers use to access websites and
do on-line learning and activities
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Providing descriptive information and order forms for employees’ individual use
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The University of Minnesota
Extension Service provides practical information to people, when
they need it. |
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