Why Should You Care About Financial Wellness?
Consider The Following Statistics:
- 24% of wages go to consumer debt payment
- 43% of Americans consider themselves financially literate
- 64% say finances are the largest source of stress in their lives
- 64% don't have enough savings to cover a $1,000 emergency
1.U.S. Census Bureau at al. 2014
2. S&P Global FinLit Survey 2015
3. American Psychological Association 2015
4. MarketWatch 2015
Consider The Following Case Study:
A recent study by Financial Finesse showed that for employees who did NOT enroll in financial wellness the firm saw a 19.4% INCREASE in healthcare costs over two years. For employees enrolled in financial wellness over the same period healthcare costs DECREASED by 4.5%. That resulted in an annual savings of $2.5m for the company.
They also looked at absenteeism for a one year period. Those not participating in financial wellness missed an average of 14.79 hours of work that year, but those who were enrolled in the program only missed an average of 10.8 hours. Based on the company’s median hourly salary ($25.24), multiplied by the number of program users (9,083), that 3.99-hour decrease resulted in a cost savings of over $900k to the firm.
How Can I Learn More About Financial Wellness?
In a recent survey by Aon Hewitt 89% of plan sponsors said they were focusing on Financial Wellness in 2016. With an ever increasing number of providers in this space, if you would like to start 2017 by discussing if a financial wellness program would compliment your workplace retirement savings plan, contact us today.
For Plan Sponsor Use Only – Not for Use with Participants or the General Public
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does Bjork Asset Management assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
T. Rowe Price, Patrick Delaney, and Rachel Weker are not affiliated with Independent Financial Partners, Bjork Asset Management or LPL Financial.