Financial Wellness Programs: Empowering Employee Financial Decisions
An Introduction to Financial Wellness Programs
As the workforce ages, retirement planning becomes an increasingly important concern for employees and employers. Many people today are worried that they won't have enough money saved to support themselves throughout their retirement years. As a result, many employers offer financial wellness programs in addition to their retirement plans to address this concern. These programs provide employees the tools and resources to make informed financial decisions.
What Are Financial Wellness Programs?
A financial wellness program is a comprehensive initiative to help employees improve economic outcomes. These programs provide employees access to various financial resources, including educational materials, financial planning tools, and individualized counseling. In addition, these programs aim to help employees better understand their retirement savings options, create a realistic retirement plan, and make informed investment decisions.
Why Are Retirement Plan Financial Wellness Programs Important?
Retirement plan financial wellness programs are becoming increasingly important because they empower employees to take control of their financial future. Many people today need to save more money for retirement and may need help understanding how much they need to keep or how to invest their savings. By providing employees with the resources they need to make informed decisions, retirement plan financial wellness programs can help them become more financial informed.
How Do Financial Wellness Programs Benefit Employers?
Financial Wellness programs can be a crucial differentiator. They can also help employers attract and retain top talent by demonstrating their commitment to employee well-being. A study by Bank of America indicated that 84% of employers say financial wellness helps increase employee retention (Bank of America, 2022).
How Can Employers Implement a Financial Wellness Program?
Talk to Your 401(k) Advisor
Talking to your 401(k) advisor is a great place to start. Some 401(k) advisors pay for third-party provider financial wellness programs. CUI Wealth Management offers these resources.
Review Service Provider Resources
Many recordkeepers also have financial wellness tools on their website. Some will have financial wellness programs as part of their service offering.
Create a Calendar
Create a calendar with education meetings, topics, workshops, and resources.
Execute the Plan
The last step, of course, is executing the plan. Make it fun. Spark some excitement. But realize that action is better than perfection. You can adjust plans, you can make things better, and you can learn from your mistakes. You'll need to take the plunge to make things happen.
In Conclusion
In conclusion, financial wellness programs are essential for empowering employees to achieve financial goals. By providing employees with access to the resources they need to make informed decisions, employers can help their employees take control of their financial future, reduce financial stress, and improve overall well-being.
Bibliography
Bank of America. (2022, Septermber 27). Bank of America Study Finds 84% of Employers Now Say Offering Financial Wellness Tools Helps Increase Employee Retention. Retrieved from newsroom.bankofamerica.com: https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/09/bank-of-america-study-finds-84--of-employers-now-say-offering-fi.html