|Illustration by Dave Calver|
An increasing number of employees view working longer as the
solution to securing adequate retirement savings. However, many employees are
forced to retire earlier than planned due to health or disability issues. To
help employers better prepare their workers for retirement, the Principal
Financial Group introduced a new approach in a white paper “Wellness =
Retirement Savings.” For employees, wellness plans can reduce out-of-pocket
medical expenses, leaving more discretionary income for retirement savings.
“Health and wealth go hand in hand,” says Lee Dukes,
president of Principal Wellness Company, a subsidiary of The Principal.
“Without good health, acquiring significant wealth and being able to enjoy it
through retirement become more difficult to achieve for employees. It’s a
matter of a shift in thinking. Instead of only focusing on saving more for
retirement, employers can put a much greater emphasis on helping employees stay
healthy, so they spend less on health care. Spending less means they will potentially
have more to save.”
The white paper provides considerations for employers
implementing wellness plans, including: aspects of a good wellness plan;
addressing health and wealth management through total wellness; and best
practices for structuring a wellness plan.