Financial Wellness and Advice seems to be exactly what employees are seeking. A majority of American workers want their employer to provide financial wellness benefits. What’s more, they have specific goals for the future, and employers can help them get there.
So found the Future of Money study, from Logica Research and cited in BenefitsPro. Of those surveyed, 77% feel it’s important for their employer to offer programs to help them manage their finances. This is the case whether it’s a new employer or an established one. Expectations vary depending on the different generations:
- Gen Z wants support with money management and more information about retirement;
- Mortgages and retirement are important to Millennials;
- Gen X is focused on retirement; and
- Boomers need the least amount of financial advice.
Millennials (84%) and Gen X (76%) want help with knowing when they can retire. Gen Z (82%) want to know how much to save to meet their goals, how to build their credit score and how to manage debt. Millennials have an interest in their 401(k), as do Gen X and Boomers, according to the survey.
Retirement continues to be a pivotal issue for many working Americans, especially since the start of the Covid-19 pandemic. Fewer people (23%) are planning to put off retirement, and half (52%) of working Americans say they plan to retire at the same time as before the pandemic. However, tensions remain about having enough savings for retirement. Half (51%) say they will never have enough saved for a comfortable retirement, while 52% say they will continue to work and never retire. In addition, 46% are focused on saving as much as they can because they will not be able to generate enough income during retirement.
Investing behaviors and financial wellness & advice are also impacted by generational differences, the survey found. When it comes to putting money into the stock market, 20% of Gen Z, 30% of Millennials, 16% of Gen X, and 7% of Boomers are doing so more than they did before the pandemic. Conversations with financial planners are also on the rise across the generations, with Millennials (21%) leading the way. The study found that confidence in financial decisions is improved and people feel less stressed about their finances if they have a financial advisor.
Still, Americans appear divided on the type of advice they’re seeking:
- 21% want advice on making the most of savings
- 21% want investment practices for their situation
- 17% want a personalized investment portfolio
- 12% want to calculate how much to save each year
- 9% want advice on spending
- 12% said they would use these kinds of tools or help
In general, it appears American employees across the generations crave actionable, personalized advice on their finances and help with achieving long-term goals like retirement. Employers can provide access to the information and advice workers want through comprehensive financial wellness benefits. Providing financial wellness and advice will not only help improve employees’ finances overall, but also boost hiring and retention.