Top trends in employee financial wellbeing for 2022

What should employers have on their radar? These are the top 5 trends that will impact employees’ financial wellbeing most in the coming year.

1.  Building emergency savings Following the financial shocks that rocked many American families in 2020 and 2021, building (or re-building) emergency savings should be a top priority. Having funds for a rainy day is the largest predictor of financial wellbeing, and elevating employer programs focused on building short-term savings to a critical priority. Think of emergency savings education as preventative care for employee financial stress. Having money stashed away today means peace of mind tomorrow. Look for holistic financial wellbeing programs that spotlight emergency savings as a part of each employee’s full financial picture.

2. Navigating cashflow changes With many employees still working from home, they are saving money on commuting costs and buying lunch out. But, they are back to traveling and spending their budget on entertainment on the weekends. Childcare expenses may have also shifted. Even for families that will continue to work from home part or full time, many are expected to have arrangements for their children during the workday.  Encourage employees to learn about and utilize a Dependent Care FSA (DCFSA) plan. This pre-tax benefit account can be used to pay for eligible dependent care services, such as preschool, summer day camp, before or after school programs, and child or adult daycare. Managing these, and other changes to their cashflow will be a top priority for your workforce.

3. Choosing the right health insurance / voluntary benefits  You offer outstanding benefits. Are your employees using them to their full potential? The U.S. Department of Labor reports that benefits are worth 30% of an average employee’s total compensation. When employees are confused, uninformed, or intimated, they are leaving money on the table and putting their wellbeing at risk. Offer financial guidance that provides benefit decision assistance year-round paired with timely Open Enrollment communications to help employees elect with confidence.

4. Preparing for big life events Employees seek financial guidance when it’s time to make a big decision, especially for the first time. That’s because major life events like getting married, buying a home, and having kids are really stressful. Missing an important step or getting something wrong can be disastrous for their financial future. Offering access to Certified Financial Planner™️ professionals can be valuable to employees and employers alike as they prepare for these big milestones. With financial wellbeing that offers access to CFPs, your benefits team will enjoy peace of mind knowing that employees’ questions will be answered by a trusted resource.

5. Saving for retirement Who wants work to be optional someday? Almost all of us. What’s the best way to make this happen? Save for retirement. Sounds easy when you put it that way, but saving for retirement isn’t that straightforward. Employees want to know how much of their paycheck they should be stashing away, how to use HSAs and IRAs to their advantage, how to plan when retirement is 20+ years in the future, and how to know if they’re saving enough (and what to do if they’re not). Skip one-size-fits-all guidance from your retirement provider and offer employees education and interactive tools from a trusted financial wellbeing provider.

Brin Chartier is the Director of Marketing at LearnLux, the leading provider of trusted financial wellbeing for the workplace. Brin is passionate about creating a world where having a financial plan is never out of reach. At LearnLux, she creates strategic content and marketing campaigns to support clients, partners, and members. Brin is based in Austin, TX, and in her free time volunteers as a marketing mentor, likes to do yoga, hike the Greenbelt, and is constantly counting the days until SXSW.