Employee education is key to ensuring financial security for retirement, especially when it comes to 401(k) enrollment. Many employees don’t fully understand the power of saving early and consistently, often underestimating how small contributions can grow over time. Clear, accessible education on retirement plans helps employees recognize the value of their benefits and make informed decisions. When employees understand their plan options, matching contributions, and tax advantages, they’re more likely to participate, contribute more, and stay engaged with their savings.
Ongoing education also empowers employees to take control of their financial future. Many workers find retirement planning overwhelming, so offering guidance on investment choices, risk management, and adjusting contributions can make a big difference. By promoting financial literacy in the workplace, employers can boost employee satisfaction, retention, and readiness for retirement. This investment in education not only helps employees achieve financial security but also shows a company’s commitment to its workforce’s long-term well-being.
At a recent TPSU Program at Nova Southeastern University, Fred Barstein, CEO of TPSU, TRAU, and 401kTV, spoke with Roberta, who manages HR and administrative duties at a company with 30 employees. She shared an example she uses to educate employees: saving $100 per month for 10 years in their twenties could lead to over a million dollars by retirement. Roberta says employees are often shocked by this, but it helps them realize the importance of saving early and motivates them to take action.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, CEO and founder of TPSU, TRAU, and 401kTV. I’m at the campus, so at Nova Southeastern University where we just completed a TPSU program. I’m here with Roberta. Welcome, Roberta.
Roberta:
Hi. Thank you.
Fred Barstein:
Okay if we ask you a few questions?
Roberta:
Absolutely.
Fred Barstein:
Okay. Before we do, tell our audience a little bit about yourself.
Roberta:
I’ve been in South Florida for over 30 years. Originally from Cincinnati. I’ve worked mostly in the not-for-profit arena.
Fred Barstein:
And how many employees do you have?
Roberta:
The company I’m with currently has about 30 employees. Previously more, 300 or so.
Fred Barstein:
And what’s your role there?
Roberta:
I do HR and administrative.
Fred Barstein:
Very good. So I was very taken by what you tell people when you have a enrollment or education. What do you tell your employees?
Roberta:
Well, I give them an example that was given to me years ago by an insurance broker that if during your twenties, you save $100 a year for each of those 10 years, that at the time you’re ready for retirement, you would have over a million dollars.
Fred Barstein:
Would that be a hundred a month or a hundred?
Roberta:
Yes, a hundred per month.
Fred Barstein:
A hundred per month. You would have a million dollars?
Roberta:
Yes.
Fred Barstein:
How do people respond to that?
Roberta:
They’re generally shocked that that little bit of money would have such a impact over all those years.
Fred Barstein:
Right. And is it motivate them, you’re finding they take action?
Roberta:
Well, at least gives them something to think about.
Fred Barstein:
Gives them something, and that’s all you can ask for, right?
Roberta:
Exactly.
Fred Barstein:
So final question, TPSU, was this your first time here?
Roberta:
It was.
Fred Barstein:
Yeah. So what did you learn here? Would you recommend it?
Roberta:
I thought it was a great experience. It was very interactive, which I appreciated. And lots of education, lots of opportunities, very meaty information, but it wasn’t boring and it was a great opportunity.
Fred Barstein:
And good lunch too, right?
Roberta:
Absolutely. Great lunch and first time I ever had a seminar where there was live music.
Fred Barstein:
And live music. Very good. Well, thank you for your time today and thank you for watching 401kTV. Please stay tuned.
