Why Financial Wellness Programs are Moving Center Stage
- Student debt is way worse than we imagined: five-figure amounts are the average, and the default rate is higher than we think.
- Millennials have little disposable income: $1.5 trillion in collective debt (not to mention skyrocketing rent) leaves little for food and fun
- Retirement for a lot of folks is in jeopardy: The title of the story ("After using their 401(k)s as a piggy bank, workers fret for the future") says it all.
In the wise words of Bright Horizons' Ellen Oliver: yikes.
"When people are under water, they can't think straight," wrote Ellen. "That hangs people up more than health or relationships - and it's leaving a mark on bottom lines."
Financial Wellness Programs in the SpotlightThe fiscal worries are moving financial wellness programs into the spotlight. And these days, such benefits have gained considerable clout. The same PWC study assessing the impact of financial instability says financial wellness programs rank as the most desirable benefits people don't already have. And no wonder. Studies show that only about a third of people keep a budget. Worse, among the indebted, most don't even know how much they owe. All that makes it no surprise that employer financial wellness programs are on the rise - up more than 300% in two years.
As with any benefit programs, ROI means knowing exactly what your employees need - and why. Debt-saddled new grads are likely hungry for student debt repayment. Older employees might need advice to wrangle debt from years - or even decades - ago. For some people, just removing the mystery of those bank statements can reap rewards. What's not in doubt is how far such benefits reach.
"Everybody has money, "wrote Ellen, "and except for the select few in the .00001%, everybody worries about money management.
"That means financial wellness benefits touch about every person in your workforce."
December 15, 2020