Numerous studies have shown that digital tools and experiences can help enhance financial well-being. Now there’s one more: Recent research from J.D. Power, cited in BenefitsPro, demonstrated the significance of digital experiences in improving retirement planning and enhancing overall employee satisfaction. Here are some key insights from the J.D. Power study and guidance employers can use to help support their employees’ financial well-being.
First, some context: Inflation has been a significant concern in recent years, affecting individuals’ ability to save for retirement. According to HSA Bank’s Health and Wealth Index, nearly half of respondents reported that recent financial uncertainty has impacted their retirement savings. Employers should acknowledge these challenges and explore ways to help employees reduce financial stress and make more confident money decisions, even in the face of uncertainty.
Despite financial stress and uncertainty, many Americans are choosing to proactively take charge of their financial futures by using mobile apps to manage their accounts. This trend is particularly noteworthy when it comes to retirement planning. The J.D. Power study found that downloads and usage of mobile retirement apps have surged over the past few years, with 47% of participants reporting that they downloaded their retirement plan’s mobile app. Moreover, 38% have used these apps in the past month.
Participants who enjoy a great digital experience are more likely to take action, such as rolling over assets from other plans and remaining loyal to their current provider when possible, even in job transitions. The study indicates that participants with high digital satisfaction are more inclined to keep their assets with their current provider (48%), compared to those with low digital satisfaction (15%).
Nonetheless, while participants’ overall satisfaction with retirement plan digital experiences has increased, there’s still room for improvement. Only 38% of retirement plan participants give their plans high marks for digital capabilities, J.D. Power found. Moreover, other industries, such as wealth management and property and casualty insurance, have received higher satisfaction levels with their digital offerings. Employers should recognize the significance of continually improving digital experiences to meet their employees’ evolving needs.
As financial uncertainty persists and rapid technological advances continue to progress at lightning speed, employers have a crucial role to play in supporting their employees’ financial well-being. The J.D. Power study underscores the importance of enhancing digital experiences in retirement planning, which can ultimately lead to stronger financial well-being and employee satisfaction, along with better retirement plan outcomes. The bottom line: Employers should continue to prioritize investing in digital tools and resources that empower their workforce to make informed financial decisions and navigate economic uncertainty with confidence.
