Employers are building into retirement plans and beyond benefits to help workers gain greater financial security, financial freedom and overall financial wellness.
Research shows that greater employee financial wellness often translates to fewer distractions and more productivity on the job. It also affects employers’ retirement plans, because workers who have sufficient emergency savings, minimal credit card and student loan debt generally have lower financial stress and can save more of their salary for retirement.
For employers, the definition of financial wellness varies, ranging from everyday budgeting and day-to-day financial behavior to long-term savings.
PLANSPONSOR spoke to numerous retirement industry sources and compiled their responses to the question, “What does financial wellness mean to you?”
Strategic Benefits Advisors’ Jay Schmitt was among the experts polled. According to Jay, “A lot of financial wellness programs have come online in the last five to 10 years that can help you make budgets and stick to budgets. … That’s really what the conversation needs to be about: How do you take a limited resource of money and apply it across your personal situation?”