There is a movement among private-sector employers to offer not just a retirement plan, but a program of benefits that addresses all aspects of employees’ finances. But employees in the public sector—including those in public defined contribution (DC) plans—need holistic financial wellness help, too.

Less than half of public-sector employees (43%) feel very/extremely confident making financial decisions on their own, according to the results of a 2019 study by the Center for State and Local Government Excellence (SLGE). Fifty-four percent worry about finances while at work, and only 29% rate themselves as very/extremely knowledgeable about finances in general. SLGE found nearly two-thirds (65%) of public-sector employees believe it is important for their employer to offer a financial literacy program. However, only three in 10 reported being offered one. Seven in 10 said they would participate in one if it was offered.

The Public Retirement Research Lab (PRRL), an industry-sponsored collaborative effort of the National Association of Government Defined Contribution Administrators (NAGDCA) and the Employee Benefit Research Institute (EBRI), formed in 2019, studied the age distribution of workers in the public sector and found the share of those in their 40s is sharply declining. This means the workforce will become significantly younger in five to 10 years, as the large share of workers age 50 or older will be retiring, while the smaller share now in their 40s starts to move into the 50-or-older age group.

Read more @Plansponsor