Beyond retirement planning: Support for employees’ more-urgent money matters
Employees want assistance with everyday financial concerns like budgeting, as well as financial literacy, employee discount programs and pretax dependent care reimbursement accounts.
A recent Financial Wellbeing Report from Gallagher revealed that employees have been experiencing increased financial stress in the past year. Particular areas causing anxiety for employees were found to be retirement planning as well as closing the gender wealth gap. Establishing and adding to a strong financial future is always a goal of employees, but a turbulent economy has many worried about their finances.
- 77% are anxious about their financial situation
- 41% don’t know if their savings will be sufficient for their needs
- 57% said a financial planner would be the best help for working toward retirement
Employees need help with retirement planning, and employers are looking for answers about how to evolve plan design to support the best interests of participants. Supporting employees in their financial health and retirement readiness can help reduce stress and also manage risk. Nine in ten employers offer at least one financial wellbeing program or resource to employees. Among the most popular are–
- 64% Pretax dependent care reimbursement accounts
- 53% Financial literacy and other educational opportunities
- 44% Personal financial coaching sessions
Related: ‘America’s retirement score’ drops: Savers only have 78% of income needed
Additionally, gender disparity in the world of finances is a tale as old as time, but the effort to reverse this history is growing stronger. An increased effort from a growing coalition of employers overall agree that closing the gender wage gap is an issue of utmost importance in the industry. Gallagher offers some tips for closing the gender wealth gap:
- Communicating with regularity
- Segmenting communications by audience
- Giving clear and actionable advice
- Reducing hesitancy with storytelling
- Improving financial literacy through education
- Growing recognition and gradual course correction
- Leaning into practical tools and targeted communications
Today’s financial and social climate urges employers to offer their employees financial wellbeing programs and resources that support a wide range of their concerns. Increased attention to the gender wealth gap and difficulty to retire is also recommended for closer and healthier relationship between employer and employee.