Emily Pfund, Author at Best Money Moves

Top Employee Benefit for 2017? Financial Wellness Programs

by Emily Pfund | Mar 22, 2017 | Blog

What’s the top employee benefit for 2017? It turns out that financial wellness programs are all the rage.

For decades, the primary financial wellness tool employers offered their employees was a 401k or some other sort of qualified retirement account. That’s all changing, according to Aon Hewitt’s 2017 Hot Topics in Retirement and Financial Wellbeing survey.

The study, now in its 13th year, found that financial wellness is fast becoming employers’ top HR initiative with 92 percent of employers saying they’re very or moderately likely to focus on financial wellness beyond retirement decisions this year. Six out of 10 employers said the importance of financial wellness programs for their company has increased in the last year.

About half of the companies surveyed are still working on building their financial wellness programs, but many are already offering at least some tools to help workers focus on their finances. Fifty-eight percent or employers currently offer at least one financial wellness tool and that number is expected to climb to 84 percent by the end of 2017.

And employers acknowledge that financial stress isn’t limited to employees’ finances: some 86 percent of employers are likely to talk about the link between financial and physical health with their employees this year.

In addition to building financial wellness programs and initiatives, employers also want to build participation in their existing financial benefits programs, most of which focus on preparing employees for retirement. Only 10 percent say their employees are knowledgeable enough about their retirement savings needs and 87 percent say they’ll take action this year to help employees reach their retirement goals.

They’re also looking for ways to make sure pension plans will still have funding by the time employees are ready to use them. According to the study, employers are looking for ways to shore up weaknesses in their pension programs to protect them against stock market volatility.

There are more insights included in the report, which you can download for free from Aon Hewitt.

Are Your Employees Asking These Questions About Filing Tax Returns?

by Emily Pfund | Mar 20, 2017 | Blog

Filing taxes adds to everyone’s financial stress, but they’re especially difficult for Millennials who are new to the workforce and feel unprepared when preparing to fill out their federal and state income tax forms .

More Millennials – about 80 percent – say they’re afraid of making a mistake when filing taxes than any other generation, according to Bloomberg.

It’s not hard to see what’s causing this added financial stress. Tax forms are intimidating; they’re filled with financial jargon and acronyms and are labeled with a series of numbers and letters that don’t really tell you what each form is for. And then there’s the added stress of worrying about the IRS coming after them demanding payment if they make a mistake.

On top of that, Bloomberg points out that many Millennials are part of the gig economy – whether as a second job or their main source of income – and these contract jobs often don’t withhold income tax from their paychecks. This means they have to estimate how much they’ll need to save throughout the year to pay their taxesin April – a difficult feat even for experienced tax filers.

Best Money Moves founder and CEO Ilyce Glink has been busy talking to employers and employees around the country about the financial issues they struggle with most. The young employees she’s talked to are particularly stressed about their taxes at this time of the year.

Ilyce has been getting three main tax questions from Millennial employees:

How do I make sure I’m doing my taxes right?
Am I deducting all the right things?
How else can I be saving money on taxes?

The fact that young workers are asking these types of questions is a great sign. Knowing what you don’t know — and seeking the answers you need — is the first step to reducing financial stress and building a more financially secure future.

When employees ask these questions, employers need to step up to help them find answers.

Unless you run an accounting firm, providing your employees with answers to their tax questions can be tricky. After all, most of us turn our tax documents over to professional tax preparers or let tax software do the heavy lifting.

That’s where Best Money Moves comes in. The program helps employees assess their financial stress, learn how to manage and solve financial problems and find answers to their most pressing tax-related questions, all in plain, simple language.

Let us help you help your employees. Call Best Money Moves today at 847-242-0550.

Are Your Employees Asking These Questions About Saving For Retirement?

by Emily Pfund | Mar 16, 2017 | Blog

For many Millennial employees, retirement feels like it’s a million years away. It’s difficult to prioritize saving money for something that’s decades away, especially when there are more pressing financial issues, like a mountain of student debt.

That doesn’t mean your employees aren’t thinking about saving for retirement; a Charles Schwab survey released last year found that 38 percent of Millennials cited retirement savings as their biggest source of financial stress and 49 percent of all workers surveyed said they feel it’s impossible to figure out how much they’ll need to save to retire comfortably.

Best Money Moves founder and CEO Ilyce Glink has been busy talking to employers around the country about the financial issues they struggle with most. Retirement savings and investing are of particular interest to Millennial employees, who struggle to figure out how much to save and where to put that money to get the best returns down the road.

These are some of the retirement and investing questions Ilyce has been getting from Millennial employees:

How much should I be saving as a 20-something?
How much should I be putting into my 401(k)? How much should I put into other investments like stocks or mutual funds?
What savings vehicles are available to me besides IRAs, 401(k)s and HSAs? Which is best? How much should I put into each?
What types of investments are smart for someone of my age?
How do I invest in stocks?
How do I invest in mutual fund?
How can I assess risk vs. long-term growth in my investments? What’s a good or safe target growth rate?
How do taxes differ on different types of investment vehicles?
What are the best long- and short-term investment vehicles?
How do I build a diversified portfolio?

When employees ask these questions, employers need to step up to help them find answers. It’s not enough to simply offer a 401(k) program, most of which are cumbersome and complicated.

While it’s an excellent benefit, it doesn’t help much if your employees don’t know how to make the most of it. And, if your employees understand the concept of a 401k, but don’t know enough about budgeting to find a few extra bucks each month to stash away in it, it won’t be an effective use of company financial wellness dollars.

That’s where Best Money Moves comes in. The program helps employees assess their financial stress, learn how to manage and solve financial problems, and find room in their budget to both pay down debt and investment in the company’s 401k.

Let us help you help your employees. Call Best Money Moves today at 847-242-0550.

Asleep On the Job? Blame Workplace Stress, not Daylight Saving Time

by Emily Pfund | Mar 15, 2017 | Blog

In this week’s Best Money Moves roundup, we take a look at news stories and new research studies that may impact employee benefits and HR issues. We hope you find this news roundup helpful, and we’d love your feedback.

Have your employees been groggier than usual this week? It’s not just the switch to Daylight Saving Time that’s causing it – it’s workplace stress.

A recent CareerBuilder survey found that more than a quarter of workers say they don’t get enough sleep and 47 percent – almost half! – say workplace stress and thinking about work contributes to their sleepless nights.

That becomes an issue when they head to the office, as 60 percent said lack of sleep has negatively impacted their work and 22 percent have called in sick to catch up on sleep, leading to even more workplace stress down the road.

Your workforce isn’t working to its full capacity – and is likely to face even more workplace stress – if half the office is asleep at their desks. So what can you do to help employees relax and get more shut-eye?

While your employees are stressed about work, they’re even more stressed about their money. A majority of workers surveyed by Guardian Life Insurance said money is their number one source of stress, with more than 60 percent struggling with debt. Here’s how that stress is harmful to their physical and mental health.

And on that note, financial counseling can drastically reduce your employees’ financial stress. A recent study found that 86 percent of employees who underwent financial counseling reported decreased financial stress as a result. (This is why accredited Money Coaches are such a big part of the Best Money Moves program!)

Will working out make you rich? A recent survey found workers who’re on the right financial track share a number of factors, including regular exercise and participation in multiple workplace benefits. Here’s what that means for your employees.

Nonprofits struggle with high employee turnover rates. Whether it’s the sometimes-stressful work or lower-than-average paychecks, it’s tough to hang on to their employees. Five experts offer tips to keep your employees around.

Employees’ needs are changing, and your benefits offerings should match. When was the last time you re-evaluated your company’s benefits strategy? Three tips to get you started.

Student debt assistance is the hottest new employee benefit. A new survey found it fell just behind health insurance and 401(k) matching in terms of popularity among employees aged 22 to 33. This is why they love it.

The 9-to-5 work day doesn’t look like it used to. Technology grants employees more flexibility with where, when and how they get the job done. Here’s how employers can keep up.

New York has taken a step toward paid family leave for all employees. The program will be funded through payroll deductions and leave will be available for employees who have worked at least 26 weeks for their current employer. Here’s what employer need to know.

Americans are still struggling to save for retirement. In fact, 40 million working-age households don’t have any retirement savings at all, according to the Federal Reserve Bank’s Survey of Consumer Finances. 10 ways to boost retirement savings.

Have something to add? Email info@bestmoneymoves.com.

It’s hard to stay on top of everything in the news. That’s why each week our Best Money Moves newsroom will bring you the most important news in financial wellness, employee benefits and financial stress. We hope you like the information and, if you do, please spread the word. For midweek developments, follow us on Twitter and on Facebook.

Will Working Out Make You Rich?

by Emily Pfund | Mar 10, 2017 | Blog

Will working out make you rich?

It’s hard enough to get folks to stay on a diet – food or money. And, it’s just as difficult to know if you’re on the right track to a future free from financial stress.

You’re putting away money for retirement, but is it enough? As college tuition rates continue to rise, how can you calculate the sum you’ll need to help put your kids through school while also padding your savings for emergencies?

In its 2016 Measuring Optimism, Outlook and Direction (M.O.O.D.) of America on Employee Benefits study, Lincoln Financial Group set out to identify the factors that people who consider themselves to be on the “right track” financially have in common.

Of the workers surveyed, 55 percent said they feel they’re on the right track toward financial well being, and they cited these five factors that they believe contribute to their feeling of financial security and success:.

74 percent of these “right-trackers” say they have created a financial plan;
98 percent say they’re focused on the future;
78 percent say they work out at least once a week;
63 percent say they feel good about themselves mentally, which makes them feel more optimistic overall;
57 percent of employees who are enrolled in more than three nonmedical workplace benefits say they’re on the right track.

It’s notable that three of the five factors (focusing on the future, working out and feeling good about yourself) have nothing to do with money or financial stress levels.

So what can you do to put yourself on the right track for a strong financial future?

Relieving financial stress means looking at more than just financial health. People who are on the right track financially are also taking care of their physical and mental health. And this makes sense: people with physical or mental health problems are more likely to be feeling the strain of big medical bills and pricey prescriptions and won’t feel as though they’re on the right track financially.
Take advantage of the employee benefits offered by employers – especially retirement accounts like 401(k)s. These benefits are put in place specifically to help set you up for your future and if you’re not using them – especially if your employer matches your contributions – you’re throwing away free money.
Make plans for your future finances. Putting money into your retirement accounts and emergency savings is good, but you need to have a strategy behind your savings. For example, if you intend to use certain savings for retirement, those funds should be kept in an IRA or a 401(k) where they’ll have the opportunity to grow, rather than a savings account that only earns a fraction of 1 percent in interest.
Know your end goal. What do you plan to do in retirement and how much money will you need to save to be in a position to do those things? The more purpose you have with your savings, the more success and confidence you’ll feel adding money to those accounts.

Feeling financially secure is more than just looking at the number on your bank statement. It also involves knowing where that number needs to be to allow you to live comfortably in the future and using all of the resources at your disposal to put yourself on the right track to meet those goals.

Identify at least one of these factors above that you’re not meeting and find ways to improve until you’ve joined the 55 percent of workers already on the right track.