t planning tools, calculators and projection tools, and investment questionnaires
- Guidance – giving employees the option of seeking professional expertise
What is still missing from the learning environment is the context for learning – why do I need to learn about CAPs?
The immediate need is the primary difference between learning about mortgages and learning about retirement planning. In the August 2003 issue of Benefits and Pensions Monitor, Annick Douville reports “a recent survey shows [that] many Canadians have failed to realize the importance of making enlightened retirement planning decisions.” Stated another way, they simply don’t see the need.
This makes it challenging for a CAP sponsor to educate its members. A lending institution that provides basic information about mortgages and an amortization calculator may find that people will learn because they have an immediate need to learn. A CAP sponsor that does the same may discover that its members do not have the information and assistance they need to make informed investment decisions as stated in the guidelines.
As such, more formal and structured investment education is required. Plan members need information, tools, and places to seek guidance – all structured and packaged in such a way that communicates the importance, value, and immediate need for them to explore, practice, and, ultimately, make an informed decision about their future.
Your first step is to provide educational materials that bridge that thorny ravine. The world is changing, markets go up and down and, each year, CAP members and their families have to face some of those ‘big’ financial decisions. As a result, retirement planning is something that should be (some say must be) revisited annually or whenever a major life change occurs.
The implication for a CAPsponsor in relation to the educational offering is four-fold:
- The information, contexts, tools, and guidance must be kept up-to-date and dynamic. The sponsor cannot anticipate major changes in the world, markets, or where plan members live, so when these occur the learning program should be able to meet those changing needs.
- Materials need to be designed with what is sometimes called ‘replayability’ in mind. Administratively, that may include providing continuous access to up-to-date educational resources. In addition, materials should be designed to facilitate and encourage repeat visits by plan members.
- Opportunities that allow the learner to apply knowledge through examples and trial and error must be provided. Ideally, feedback should be incorporated in educational materials to ensure that learning is on the right track. This is fundamental if any permanent impact is to be made on the plan holder’s approach to his or her investment portfolio.
- Family members and others close to the member who are affected by any financial decision should have access to educational resources so they will be able to understand the implications and benefits of a CAP.
When searching for, or designing, any learning materials, it is important to look beyond content and tools – and provide a rich environment that meets the individual needs and objectives of the learner. A high quality educational program will take information, tools, and guidance and then wrap them in a context similar to the learner’s own experiences. It will also be kept up-to-date and encourage, by its features, design, and utility, multiple visits from plan members and their families.
The proposed CAP guidelines are a good start in helping you build a bridge over the thorny ravine.
Ultimately, well-designed education will result in increased employee participation and plan satisfaction. But, more importantly, it will directly impact the future quality of life of plan members and their families.
Colin Geissler is lead instructional designer at the Canadian Securities Institute.
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