Financial Wellness Is a Top Priority for Employers and Employees

Stressed Over MoneyFinancial stress continues to be top of mind for many employees as inflation, layoffs, and recessionary fears linger.  Adding to that stress is that many American adults are underprepared for retirement, and they’re not confident that they’ll have enough savings to live comfortably in their post-career years.  It’s no wonder that financial wellness continues to be a highly requested employee benefit.  In fact, 92% of employees prioritize retirement planning assistance when choosing where to work, according to Morgan Stanley at Work’s annual State of the Workplace report.

The Morgan Stanley survey, cited in a recent Employee Benefit News article, found that 66% of employees say financial stress is impacting their work and personal life, and 66% of all employees have cut back their retirement savings due to concerns about inflation and recession.  That behavior is no doubt undermining their retirement readiness.  And it’s concerning, considering that American workers age 18+ say they’ll need to have $1.25 million to retire comfortably, but 37% say they have no savings at all, according to data from Schroder’s cited in BenefitsPro.

Financially stressed employees also don’t have a solid understanding of how 401(k) plans work, according to research from ValuePenguin cited in Employee Benefit News.  Financial wellness programs can help them get a better grasp on how saving for retirement can positively impact their future, and how a workplace retirement plan can help them achieve their savings goals.  Fostering financial wellness in the workplace is key to helping employees prepare to retire comfortably.  Without a solid understanding of how money works and why they need to save for the future, many employees are apt to focus on their immediate financial needs, to the detriment of their future financial security.

According to Morgan Stanley, 84% of HR leaders understand that financial education around retirement is a key recruiting and retention strategy.  What’s more, Schroder’s found that 78% of employees want access to emergency savings through their retirement plan.  Despite ongoing discussions about recession, the labor market is still ultra-competitive, and employers must differentiate themselves in order to attract and retain top talent.

Demonstrating that your organization has invested in employees’ financial well-being by providing financial wellness and other helpful education programs tied to your retirement plan can help you achieve your recruiting and retention goals.  Providing access to webinars, workshops, access to 1:1 coaching and financial advisors can help employees make sound financial decisions, better manage their money stress, and help them be more focused, productive, and satisfied at work.  Financial wellness and education is a win-win for you and your employees.

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