Overheard @: Workers hunkering down for long recession

A new survey of 1,002 Americans by Econ4U shows how Americans are responding to the financial crisis. And although respondents appear to be saving more, the overall outlook is pretty cloudy.

* 76% expect the recession to last for at least another year.
* 64% have less than six months of savings in case they lose their job. 39% have two months or less.
* 64% know someone who has lost their job in the past six months.
* 40% have begun saving more because of concerns about the economy.
* 19% have experienced trouble accessing credit in the past six months.
* 83% of survey respondents said they expected a tax refund this year. 31% were planning on spending the refund, 29% expected to put it into savings and 18% said they would use it to pay off existing credit card debt.

"When two-thirds of Americans do not have enough savings to pay their bills for six months if they lost their job, it is clear that the skills of budgeting and saving skills have become something of a lost art in this country,” says James Bowers, managing director for the Center for Economic and Entrepreneurial Literacy. "Increased adult education in economics and personal finance would address the concerns of many Americans and give them the tools to protect themselves during this economic downturn.”

Well, there you have it, pros. What is your company doing to make workers more financially savvy? Is it an employer's duty to provide such an education? Comment and let me know.

Also, read more from EBN and BenefitNews.com on financial education.

News You Can Use: Stressed employees flocking to EAPs

Survey results from the Employee Assistance Society of North America show an 88.2% increase in calls to EAPs for financial services. In addition, requests for help coping with stress were up 82.4%, and calls for legal services were up 41.2%.

Such results don't really surprise us much here at EBN, as financial and emotional worries often go hand in hand. However, what does seem troublesome is that we haven't seen similar surveys that show calls to retirement advice lines have been burning up as well. Are employers not offering retirement/fincancial planning services in as large numbers as they do EAPs? Are EAPs better communicated? Do employees feel more comfortable talking about their finances in the abstract rather than facing hard numbers?

Comment and share your thoughts.

Tip of the Day

In a word, duck! A finger of blame may be pointing your way. A recent article in the Las Vegas Business Press reports that employees angry over their 401(k) losses from the stock market freefall will be "looking for someone to blame," and that someone may be employers.

Since we want to leave you with more of a tip today than "duck," read the full LVBP article on how to approach financial education for employees amid the economic downturn, and a recent EBA report on how HR/benefits pros are taking action to shield employees from greater financial pain through benefit programs.

News You Can Use: Workers concerned about finances, but sticking to their financial strategies

Concerned about financial strains, employees want more information about how to handle their retirement plans and personal debts.

Debt, retirement planning and budgeting are the top concerns of employees calling a financial helpline run by Financial Finesse, a Manhattan Beach, Calif.-based financial education firm.

Most frequently, they are seeking information about how to deal with creditors, strategies to reduce debt, whether they are eligible for a hardship withdrawal in their retirement plan, the pros and cons of taking a loan from their retirement plan, and how much they should be saving for retirement.

Amid the crisis in the national economy, basic budgeting questions are up 6% over the same period last year, with workers seeking information about how create a household budget, make ends meet and manage financial affairs after a divorce.

Liz Davidson, CEO of Financial Finesse, says people are being more proactive about getting control over their finances. “People are getting back to the basics and what can I do today” to get in better financial shape,” she adds. “People are coming to reality, what they can and cannot afford.”

Meanwhile, a new survey from the Certified Financial Planner Board of Standards reveals that 78% of investors are sticking to their existing financial planning strategies, while 57% are reviewing asset allocation and 48% are reviewing financial goals. Another 45% are moving assets to lower-risk positions, while 37% are rebalancing their portfolio.

Clients of financial planners maintaining their long-term financial goals, with 45% moving their assets to lower-risk investments and 40% taking advantage of the lower stock prices.