Education on its own is simply not enough.
Tag: financial wellness program
Financial stress is on the rise in all generations, indicating that financial wellness programs are missing the mark, according to PwC. A new survey report from the firm suggests many employers have simply relabeled existing resources as "financial wellness programs."
A multi-year study found employees who regularly engaged with their employer’s financial wellness program more than doubled their feeling of retirement preparedness.
The GAO interviewed retirement plan stakeholders and found several ways to stem the tide of funds leaving 401(k)s and IRAs.
Among the nearly one-third that are, they are more likely than others to have measured their employees’ financial wellness.
Working with recordkeepers that offer financial wellness programs can help a market of plan participants underserved by individual retirement advisers.
The program includes tools such as “money coaching,” where customers can utilize a financial professional for thirty days at no additional cost; identity theft protection and resolution services, and tools and resources for preparing wills and other important legal documents, among other things.
PwC has identified findings about money personalities and behaviors that can influence how employers tailor their approach to financial wellness programs.
Principal Milestones, which includes iGrad’s Enrich financial wellness program, helps participants access comprehensive financial education resources all in one place.
MetLife suggests that sponsors use "value of investment" to measure the intangible outcomes of financial wellness programs, such as employee productivity, engagement and overall job satisfaction, as well as costs associated with absenteeism, disability claims and turnover.
A MetLife white paper suggests employers consider linking financial wellness communications with acknowledged personal milestones or positive behaviors.
Among employers that do not offer a financial wellness program, reasons cited in a survey were: have not thought about it, need more resources to execute, need to focus on other organization priorities, do not perceive any financial benefits, and do not want to get involved in employees’ personal finances.
A research report says "financial education delivered to employees around the age of 40 will optimally enhance savings at retirement close to 10%. By contrast, programs that provide one-time education can generate short-term but few long-term effects.”
Sixty-one percent of employers that offer financial wellness programs are satisfied with their benefits program, Prudential found.