Spring into action to help your employees refresh their financial plans

Whether it’s the family home or an apartment with roommates, cleaning up your living space this spring can bring real benefits. But spring is not just the time to clean out your closet and dust off the shelves. As HR professionals and benefits advisors, you can play a key role in leveraging this can-do moment on the calendar to encourage your employees to refresh their financial plan.

3 ideas to help employees refresh their financial plans

Even small steps can lead to big breakthroughs, so here are three ideas on how to translate the spirit of spring cleaning into financial wellness action:

1. Stock up on supplies. Your spring clean can only be as good as the tools you have on hand.  When it comes to your finances, an important supply to take stock of is savings. Encourage your employees to consider making emergency savings a part of their larger financial plan. Even starting out with a small amount can grow into months of protection with consistent contributions over time.

Or, for those who already have their emergency savings in place, think through whether the amount they have put aside still matches their current needs.

Last year presented many challenges. Some saw sources of income vanish while others had to tackle new and entirely different expenses. Those with emergency savings funds may have been in a better place to handle whatever circumstances came their way.

And for those who were able to steer clear of any economic troubles, having emergency reserves allowed them to stay confident even with so much uncertainty.

2. Start with the easy stuff. It turns out that some of the most important steps in a spring cleaning are relatively easy.

One simple step for your employees that can make a big difference in their financial wellbeing is to enroll in their employer-sponsored retirement plan. Almost everyone these days can enroll online, and more and more workplace retirement plan enrollments can also be done on their mobile devices.

It’s important for employees of all ages to take advantage of their workplace retirement plan, at least to the extent that it fits within their monthly budget, but the benefits can be especially significant for Gen Z and Millennials. The money invested early in a career has the potential to grow for many more years than the money saved later.

For those already participating in the workplace plan, the message can be a little different. Congratulate them first on continuing to make contributions through such a volatile year, then encourage them to add to their monthly contribution level if they think they can.

3. Sometimes it’s best to call a pro. Some spring cleaning projects are just too big to do on your own.

One important financial project is creating a comprehensive financial plan, but that can be a complicated effort that requires a significant amount of experience and expertise. If your company offers access to a financial professional, make sure your employees know that and encourage them to leverage this resource.

Urge your employees to make one-on-one appointments to assess their goals, evaluate where they are and think through where they’re hoping to go.

Financial guidance designed for their individual needs and circumstances can help empower your employees and put them in the driver’s seat.

Communicating this spring on financial wellness

If you’re thinking of using spring cleaning as a time to encourage your employees to refresh their financial plan, make sure your communications and education bring a positive tone to the project. Conveying optimism and confidence is more likely to inspire action.

One key to reaching your employees is to use different channels so you can match up more effectively with personal styles – some people absorb information best when they read it, others when they hear it, and some want to attend an interactive session.

Also remember that everyone has their own path to action. Make sure you include the right options for your employees who will want lots of assistance, while also covering the necessary details for those who prefer to handle things on their own.

Ideally, your content and messaging will be tailored to different age groups and demographics. After all, individuals just entering the workforce have different financial priorities and concerns than employees on the verge of retirement who are figuring out the final steps ahead of their golden years.

We also encourage analyzing the effectiveness of your communications so you can better understand your employees’ preferences and priorities.

As you spot trends and develop insights, you’ll be able to take strategic, data-driven action focused on improving individual employee outcomes as well as the overall health of your organization’s retirement plan.

The pandemic may have shifted priorities and created new challenges, but it is important that your employees remain on track – regardless of where they are on their journey – and a spring refresh is the perfect opportunity to do so.

Gilliane Isabelle is Chief Distribution Officer, AIG Retirement Services. AIG Retirement Services represents The Variable Annuity Life Insurance Company (VALIC), Houston, TX and its subsidiaries, VALIC Financial Advisors, Inc. (VFA) and VALIC Retirement Services Company (VRSCO). All companies are members of American International Group, Inc. (AIG).