Education improves financial outcomes
Several recent studies have shown a direct link between financial education and the propensity to save,( Lusardi 2005 ) further a 2006 OECD policy brief supports the notion that financially educated individuals are more likely to challenge financial service providers to provide products and services that meet their investment needs.
Research also indicates that employers use educational resources, such as seminars and workshops , written communication, websites and financial counselling to educate employees about retirement saving ( Krajnak et al 2008 ). Importantly it has been shown that these educational resources can influence an individuals retirement savings intentions and behaviour ( Nyce 2006 ) and that as an individuals financial knowledge increases, so will their ability to plan better and save for retirement ( Lusardi and Mitchell 2007 ).
My own research into ESOP’s and their use in business succession planning has already highlighted lack of education and awareness of the types of plans available and their potential benefits to both business owners and employees is one of the stumbling blocks to implementing what is widely agreed to be a desirable succession planning option.