Hitting the Lottery: It’s Not the Answer to Your Employees’ Retirement

We can’t all win the lottery next week, but amazingly, 21 percent of Americans — 38 percent of those with incomes below $25,000 — think that winning the lottery represents the most practical way for them to accumulate several hundred thousand dollars, according to the American Savings Education Council’s Savings Facts and Statistics.

So instead of throwing a dollar into the office lottery pool for next week’s drawing, take the time to join the America Saves Week campaign as an opportunity to encourage your employees to save automatically through payroll deduction or direct deposit towards an emergency fund, a goal like a home, or towards retirement.

Start small, think big

Started in 2007, America Saves Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status. Typically, over 2,000 organizations participate in the Week, reaching millions of people. The yearly event is coordinated by the American Savings Education Council (ASEC), which is a program of the Employee Benefit Research Institute (EBRI).

This year’s theme is “Set a Goal, Make a Plan, Save Automatically” to promote opportunities for automatic savings, like direct deposit and splitting paychecks between saving and checking accounts. The goal is to create a national movement focused on savings and financial action by encouraging people to “Start Small, Think Big.” America Saves Week is an opportunity for you to:

  • Feature the products and services you provide to your employees that help people build wealth.
  • Provide a valuable benefit to your employees by bringing in financial experts and hosting workshops about the importance of saving automatically.
  • Join a nationwide effort to encourage people to save.

You can download the America Saves Week Employer Resource Kit which offers posters, flyers, and payroll stuffers that you can use to spread the word to your workforce to encourage employees to follow three easy steps:

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  1. Assess their current savings progress.
  2. Test their savings knowledge with an online saving quiz.
  3. Take action to save more effectively.

Although the campaign only runs Feb. 19-Feb. 26, it can get your workforce on the path to improving their overall financial wellness and improving their financial security for a lifetime.

This was originally published on the Financial Finesse blog  for Workplace Financial Planning and Education.

Linda Robertson is an experienced financial planner with FinancialFinesse.com, the nation’s leading provider of unbiased financial education programs to corporations, credit unions and municipalities with over 400 clients across the country. Her focus is on retirement and tax planning, and her background includes positions with NationsBank, H & R Block, and Metropolitan Life. Contact her at linda.robertson@financialfinesse.com .