Background: More employees are turning to “financial influencers” on social media to learn how to manage their money. Over half of U.S. adults now get at least some news from these platforms, according to Pew Research, and it’s clear that social media is shaping how people think about their finances. But not everything online is accurate—or even helpful—especially when it comes to saving for retirement. So, who are your employees really listening to? And why is it so critical that they’re getting reliable, trustworthy information to guide their financial decisions?

Findings: AllianceBernstein’s (AB) 16th annual Inside the Minds of Plan Participants survey—based on responses from over 1,200 DC plan participants—shows that only 46% say they have at least some level of trust in financial advice they get from social media sources. Conversely, 54% say they don’t trust it, to varying degrees. This

underscores a credibility void that DC plan sponsors are well-positioned to fill with both financial education and investing insights, with the opportunity to learn from social

media’s creative approach to reaching investors.

Financial literacy remains a challenge for many participants. We saw this in about one-third of survey respondents, who believe they can spend 10% of their savings annually in retirement and never run out of money. Plan sponsors can help fill these knowledge gaps with financial literacy and wellness programs.

Employers can also highlight the retirement-friendly features of some DC plans, such as target date funds and guaranteed income products. For example, respondents say their most pressing retirement need is a steady source of income. Yet, only 36% are confident or very confident that they’ll have a comfortable retirement. Guaranteed income benefits provide lifetime income and, in some cases, complete control over investments.

Bottom Line: If your employees aren’t getting reliable guidance from trusted sources, they might be making decisions based on shaky information. The more you connect with them—through clear communication, education, and support—the better equipped

they’ll be to make smart choices for their future.

Plan sponsors might be able to learn a thing or two from social media’s mobile-friendly platforms and bite-sized messages to increase engagement and reach employees.

These communication approaches could offer new ways to reach employees by promoting financial literacy, retirement readiness and DC plan features. Ultimately, DC plan sponsors may have more influence than they realize.

Insights shared by guest contributors are their own and do not represent the views of DCIIA or the RRC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.