Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 27th, 2015
Benefits & Administration
Beyond Auto-Enrollment: Financial Wellness Education
Travis Freeman likes to tell this story: When the husband of an employee at a client’s firm lost his job, the couple debated withdrawing funds from his 401(k). But, thanks to the wife’s financial wellness training, they made a better choice. Consulting with an expert in a follow-up to a financial wellness education session, they learned she could net $350 more per pay period, just by changing her withholding status. “That education alone probably saved them $4,000 to $5,000 in taxes and penalties,” says Freeman, president of Four Seasons Financial Education. “That doesn’t include the money they wouldn’t have been able to grow again.”Read more >
Two-thirds (66%) of private industry workers were offered a retirement savings plan in March, the Bureau of Labor Statistics found in its National Compensation Survey. Among workers in the lowest wage category, the 10th percentile, only 31% had access to a retirement plan. By contrast, among those in the highest wage category, the 90th percentile, 88% had access to a retirement plan.Read more >