Financial Wellness – Company Makes 401k Plan Only Part of the Program
At a TPSU program held at the University of South Florida in Tampa, a Benefits Analyst explains how she focuses on the financial wellness program of which their 401k plan is just a part to help prepare people to be able to retire when they want to benefit them and the company. Many 401k and 403b plan sponsors see financial wellness as part of their retirement programs but taking a different approach seems to be more effective.
The company, which provides financial services to credit unions, has multiple locations which mean they need to be able to reach employees in different ways. “We try to meet people where they are based on what they need,” explains the Benefits Analyst, “Whether they are dealing with student loans or trying to buy a house.” People will not be comfortable saving enough for retirement unless they are financially whole which means meeting the unique challenges of each employee.
Deploying various methods, some custom and some generic, the Tampa-based company uses a combination of workshops, meeting, and digital coaches as well as personalized one on one meetings and coaching where possible.
The problem with financial wellness is that the people that are most likely to use it are not the ones who need it most. What keeps many people from saving for retirement or even dealing with their finances is fear and embarrassment not believing anything will help which is driving suicides rates for middle age white males to historic rates.
Beyond the more than $14 trillion held in defined contribution plans and IRAs fueled by these plans is the ability to reach people at work to help them save and deal with their finances which is driving state auto-IRA initiatives to provide coverage for more workers. Though incorporating financial data on individuals outside their corporate retirement plan is important, data from defined contribution plans is a great start from which to help people as is access to them at work to deploy innovative financial wellness programs. Lack of access to data and innovation is holding back big breakthroughs.
