Studies show that regardless of age, few employees consider financial wellness in terms of retirement, leaving them vulnerable to serious financial difficulties in later years. When surveyed, employees of all ages named “freedom from financial stress and debt, enjoying life and being prepared for emergencies” as their ideal state of financial wellness.
While the definition of financial wellness benefits and best practices vary widely, one thing is certain – employees and employers are being negatively impacted by financial pressures and widespread financial illiteracy. A PricewaterhouseCoopers study shows that more than 40% of employees spend three hours of their work day dealing with personal finances. Be it insufficient retirement planning or struggling to make ends meet, employees across a wide spectrum of industries are in desperate need of help.
Meeting Employee Needs
The good news is that financial wellness programs are on the rise. One insurance company, in fact, expects the number of plan sponsors offering such a benefit to grow from 17% to more than 50% over the next five years. And while many employers are uncertain as to what a program might include, most agree that financial wellness is not only good for the employee’s holistic health, it creates a very positive outcome for the employer as well.