Educating Employees About Retirement Planning and Benefits

For many organizations, an employer-sponsored retirement plan is a major workforce investment. Yet employees may not fully appreciate it if they don’t understand how the plan works or fits into their long-term financial goals. As a result, some employers can fall short of strategic objectives such as strengthening retention and engagement.

That’s why you shouldn’t view retirement education as a one-time handout during onboarding or even a reminder during annual enrollment. It should be an ongoing part of your broader benefits communication strategy.

Thirst for knowledge

Surveys often show that many employees want to learn about financial planning. For example, Bank of America’s 2025 Workplace Benefits Report explores employee financial well-being, retirement preparedness and the role of workplace benefits. It’s based on nationwide surveys of nearly 1,000 employees and 800 employers.

Among the report’s findings, 36% of employees said they need financial wellness resources related to retirement education and planning. Employees also expressed interest in learning how to generate income in retirement and developing good financial skills and habits, each cited by 33% of respondents.

The takeaway is clear: Retirement education can be an important supplemental benefit. Many employees need help understanding both the plan you sponsor and how to save for the future while grappling with today’s financial pressures. As an employer, you’re in a unique position to provide this education because you have a ready-made audience — your workforce — and multiple avenues to communicate with them.

Topics and teaching methods

A good place to start educating employees about retirement benefits and planning is by teaching them the basics of investing. Many employees are unfamiliar or at least not entirely comfortable with how it works. To stay on safe legal ground, don’t provide individualized investment advice. Focus on general educational guidance. For instance, you might teach them about compounding growth, the tax implications of different types of savings plans, and how much they’ll likely need to save to reach a certain sum at retirement.

Naturally, you should explain in plain language how your retirement plan functions, too. For instance, once enrolled, how do employees decide how much to contribute, how does employer matching work (if you offer it), and how can they adjust their savings rate or investment elections over time? It may also be helpful to address topics employees increasingly ask about, such as:

• Roth vs. pretax contributions,
• Automatic enrollment features, and
• Catch-up contributions for older workers.

As you put together a retirement planning education strategy, be prepared to provide information in various formats. Email campaigns or other online communication methods will resonate with some employees, while others will prefer printed material. By offering a mix of options, you’ll increase the odds of reaching different segments of your workforce.

Strongly consider in-person or virtual learning sessions as well. Even if your business offers printed and electronic materials, seminars or “lunch-and-learns” can help employees better understand your plan and the key concepts of saving for retirement. In addition, these sessions enable you to reinforce the value of your retirement plan as part of each employee’s overall compensation package.

Last, offer educational opportunities regularly. Obviously, open enrollment is a major event, but spread retirement education efforts throughout the year.

Many payoffs

Employers have much to communicate to employees these days, and retirement planning may not always make the top of the list. But helping your workers understand their retirement benefits and how to save for the future can pay off in many ways.

Better-informed employees are more likely to actively participate in your plan — boosting its value and your return on investment. That, in turn, can help support your organization’s broader retention and engagement objectives. Contact us for help assessing the financial, tax and strategic implications of your retirement plan.

© 2026