A recent study from the Employee Benefit Research Institute (EBRI) and the FINRA Investor Education Foundation reveals that employer-sponsored financial education programs remain underutilized, with just 9% of U.S. workers having participated. The research, based on survey data, highlights a significant income disparity: more than one in five workers earning between $200,000 and $300,000 reported taking part, compared with roughly one in ten earning between $75,000 and $100,000.
Despite this skew toward wealthier employees, the study found that lower-income workers who participated experienced notable improvements in financial behavior. Among those earning less than $100,000, participants were seven percentage points more likely to report spending less than they earned than nonparticipants. Additionally, their self-reported personal financial satisfaction nearly matched that of higher-income workers who had never enrolled in such programs.
The research also assessed financial literacy. Eighty-five percent of participants rated their financial knowledge at five or higher on a seven-point scale, versus 63% of nonparticipants. Participants also scored higher on a five-question financial literacy assessment. After controlling for income, education, and demographics, workers who completed workplace financial education were 42% more likely to achieve a higher literacy score.
These findings come as advisors increasingly emphasize the importance of financial wellness in retirement planning. For example, Vanguard Research: Retirees Need Income Strategy, Not Just Savings Target underscores the need for holistic planning. Similarly, Visa Research Trims Great Wealth Transfer Estimate to $36 Trillion, Advisors Urged to Act Early highlights the growing focus on financial education across wealth levels.
The EBRI-FINRA report suggests that expanding access to workplace financial education could help bridge gaps in financial confidence and literacy, particularly for workers with fewer resources. However, the low overall participation rate indicates that employers and advisors may need to rethink how these programs are marketed and delivered.
For advisors, the data reinforces the value of integrating financial education into client engagement strategies. As HSBC Survey: 57% of Affluent Investors Use AI for Research, but 59% Still Trust Human Advisors for Final Decisions shows, technology and human guidance can complement each other in improving financial outcomes.
