financial wellness Archives

Employee Financial Wellness: 5 Financial Stress Statistics for 2020

by LizStevens | Nov 6, 2019 | Blog

Employee financial wellness: 5 financial stress statistics for 2020. How much financial stress costs employers and how employees really feel about financial wellness programs.

The latest Financial Stress Survey from John Hancock Retirement found that financial wellness programs improve job retention, stress levels, and job productivity. Financial wellness programs are now a component of employee benefits that employers can’t afford to ignore.

Employee Financial Wellness: 5 Financial Stress Statistics for 2020

Here are the top 5 most important findings from the report:

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Financial Wellness Programs: Personalization Is a Must

Almost 90 percent of employers say they currently have or are developing a financial wellness strategy, but only 20 percent of employees claim their employer offers anything more than a limited financial wellness program, according to the report by John Hancock Retirement.

While most employees are experiencing financial stress, they’re all experiencing it in different areas and to different degrees. That’s why it’s increasingly important that employer solutions like financial wellness programs have capabilities for customization and personalization to make sure they can address each employee’s unique financial pain points.

Financial wellness programs, like Best Money Moves, are mobile, personalized, gamified and easy to use. Best Money Moves provides practical, unbiased help so employees can make smarter financial decisions.

More on Employee Financial Wellness and Financial Stress Statistics

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5 Must-Have Benefits for Millennial Employees

How Does Financial Wellness Affect Health?

5 Fast Financial Stress Statistics

Hiring Trends to Watch in 2020

What Is Financial Literacy and Why Is It Important?

4 Big Employee Benefit Trends for Family Planning

How Can Financial Wellness Be Improved?

5 Retirement Challenges for Older Employees

by LizStevens | Oct 23, 2019 | Blog

5 retirement challenges for older employees. New research highlights housing inequality on top of other barriers to retirement readiness.

A recent survey by Transamerica found nearly 70 percent of Baby Boomers expect to work past age 65 or don’t plan to retire at all. More than 80 percent of them say their decision to stay in the workforce is financially motivated.

Older employees are facing considerable financial challenges as they approach retirement. Homeownership rates are lower and debt rates are higher for older workers aged 50 to 64, as compared to earlier generations, according to research by the Joint Center for Housing Studies (JCHS).

“The falloff in homeownership rates among those approaching retirement, and the elevated levels of mortgage debt among those who do own, is concerning,” says Chris Herbert, Managing Director of the Joint Center for Housing Studies.

The dip in homeownership rates and the spike in mortgage debt is just the tip of the iceberg sinking older employees’ timelines for retirement. Older workers are paying off credit cards and student loans, providing financial support for grown children, becoming caretakers for aging relatives and struggling to save for emergencies, let alone retirement.

5 Retirement Challenges for Older Employees

Click through the slideshow below for some fast stats on five of the biggest retirement challenges older employees are facing on top of housing inequality:

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How Employers Can Help Older Employees Get Ready for Retirement

More than 60 percent of Baby Boomers feel like they don’t know as much about retirement investing as they should and almost as many of them (55 percent) would like more education and advice from their employers on how to reach their retirement goals.

Financial wellness programs, like Best Money Moves, give employees personalized tools to help them better manage their money, pay off their debts, build their savings and plan for retirement. Best Money Moves provides practical, unbiased help to make it easier for employees to solve financial problems quickly and easily. And, for employers, less financially-stressed employees translates into a happier, healthier and more productive workforce.

More On Retirement Planning and Financial Stress

Baby Boomer Retirement Statistics and Financial Stress

Retirement Concerns Aren’t Boosting Contributions

How to Help Employees Save More for Retirement

Retirement Concerns: Is Financial Literacy the Solution?

Financial Support Limits Retirement Readiness for Parents

Retirement Research Will Blow Your Mind

Financial Wellness Is About More Than Just Retirement Planning Advice

It’s Easy to Help Your Employees with Retirement Planning

Employee Benefits 2020: Why Employees Want Financial Wellness

by Ilyce Glink | Oct 2, 2019 | Blog

Employee benefits 2020: why employees want financial wellness. Financial stress has permeated all corners of the workforce and employees need your help to stop it.

In their annual survey on employee benefits, the Society for Human Resource Management (SHRM) discovered that financial wellness is one of the top benefits most employees want in 2020.

Employee Benefits 2020: Why Employees Want Financial Wellness

Why do employees want financial wellness? Well, they’re financially stressed. Seriously stressed. A Mercer study from 2017 found that employees spend an average of 3 to 5 work hours per week working on issues related to personal finance.

From an employer’s perspective, providing overall financial wellness tools and resources as an employee benefit would have been unheard of a generation ago. But today, 78% of Americans live paycheck to paycheck, and financial stress has permeated all corners of the workforce.

There are four generations of employees in the workplace (Gen-Z, Millennials, Gen-X and Baby Boomers), and all are dealing with most of the same financial issues. But, they experience that financial stress in different ways. That’s why providing the right mix of financial wellness tools and resources that can provide personalized and contextual assistance is table stakes.

How Financial Stress Affects Your Employees

Here’s a quick look at the four generations and some of the financial issues they’re struggling to manage:

Gen-Z: They’re dealing with high student loans and credit issues due to late payments on bills. Nearly a third are worrying about paying for housing (renting, not owning) and 28% worry about hunger. Overall, there’s a lot of general money angst.

Millennials: This generation is $1 trillion in debt, which is more debt than any generation in history. Student loans make up the majority of that debt. A third have a credit score that is subprime or lower. The average age for buying a first home is 34, the highest in history and this cohort owns fewer homes than previous generations. Childcare can cost up to 50% of their income, and more than half are getting some sort of financial help from their parents.

Gen-X: This generation has the most credit card debt of any demographic. They’re in their peak earning years, but it’s also the peak debt years – and they’re caring for children and their aging parents (25% provide financial support to their parents) all at the same time. They’re saving for college tuition or paying their parental contribution, or just providing financial support (nearly 50%) to their adult children. That’s why they’re so retirement un-ready: One third has no retirement savings at all.

Baby Boomers: Their financial stress centers around longevity – theirs. Baby Boomers are living longer and since they don’t have much in the way of retirement savings, they’re staying in the workforce longer, too. They worry about paying for their grandchildren’s college educations and their own healthcare costs in retirement. They need to work, but they want some flexibility, too.

More on Employee Benefits Trends and Financial Wellness

5 Must-Have Benefits for Millennial Employees

How Does Financial Wellness Affect Health?

5 Fast Financial Stress Statistics

Hiring Trends to Watch in 2020

What Is Financial Literacy and Why Is It Important?

4 Big Employee Benefit Trends for Family Planning

How Can Financial Wellness Be Improved?

Top 10 Employee Benefits for 2020

Baby Boomer Retirement Statistics and Financial Stress

by AllyMauch | Sep 17, 2019 | Blog

Baby Boomer retirement statistics and financial stress. Their chief concern is retirement savings but they have other sources for their financial stress, like healthcare costs and emergency savings.

Baby Boomers, those between the ages of 59 and 75, still make up a significant portion of the U.S. workforce, despite many having hit retirement age. As one of the largest generations in history, Baby Boomers are faced with their own set of unique financial stressors.

Retirement savings are the most obvious concern for Baby Boomers, 54 percent of whom report losing sleep over money issues. In addition to stress over retirement savings, however, Baby Boomers are also worried about having a robust emergency fund in the case of unexpected expenses and they’re also stressed about rising healthcare costs.

Baby Boomers Emergency Savings Stress

The recommended amount for an emergency fund is six months worth of expenses, but a whopping 20 percent of Baby Boomers have less than $5,000 in personal savings, according to Northwestern Mutual’s Planning and Progress Study. This leaves them woefully unprepared for any unexpected expenses, such as a medical emergency or loss of employment.

Further, one-third of this generation find it difficult to meet their household expenses on time each month, and nearly 60 percent would not be able to meet their basic expenses if they were out of work for an extended period of time.

Healthcare Costs Hinder Financial Wellness

Healthcare costs are rising at a rapid rate, and Baby Boomers are particularly susceptible to the increases. Those 65 and older spend 41 percent or more of their average Social Security income on health care — a number that is expected to rise to 50 percent within the next decade. This means that Baby Boomers need to be saving even more as they approach retirement — more than one-third of them say healthcare costs were their biggest worry regarding retirement.

A large portion, 27 percent, of Baby Boomers, report that lower healthcare costs would most help them achieve their future financial goals, making healthcare a top concern.

Retirement Savings and Baby Boomer Financial Stress

Finally, stress regarding retirement is the most significant financial stressor facing Baby Boomers, as most are concerned about not being able to retire when they want to. About 40 percent are also worried about running out of money while in retirement, and that same percentage have less than $50,000 saved towards their retirement funds.

More than half of Baby Boomers are planning to delay their retirement for a variety of reasons, but the most commonly cited are that they haven’t saved enough, don’t want to retire yet, have too much debt or need to keep the healthcare coverage offered at their jobs. These concerns regarding retirement make it clear that simply having a 401(k) set up is not enough to aid employees in their retirement planning.

Baby Boomers note financial matters as their main cause of stress, and they are the most likely to take advantage of workplace financial wellness programs, like Best Money Moves, to alleviate their stress. Best Money Moves is a mobile, gamified and easy-to-use financial wellness program. It provides practical, unbiased help so employees can make smarter financial decisions and manage the debt they have.

More on Financial Stress and Retirement

5 Must-Have Benefits for Millennial Employees

How Does Financial Wellness Affect Health?

5 Fast Financial Stress Statistics

Hiring Trends to Watch in 2020

What Is Financial Literacy and Why Is It Important?

4 Big Employee Benefit Trends for Family Planning

How Can Financial Wellness Be Improved?

Top 10 Employee Benefits for 2020

If you want to learn more about how Best Money Moves can bring financial wellness to your company download our whitepapers and sign up for a demonstration here.

Employee Financial Wellness Statistics 2019

by LizStevens | Sep 9, 2019 | Blog

Employee financial wellness statistics 2019. New research looks at the spillover effect financial stress has on employee productivity.

Greetings,

New research by Morgan Stanley highlights the impact financial wellness has on employee productivity.

Nearly four in five employees (78 percent) with high financial stress say that they are distracted by financial stress at work and it’s not just workers with lower incomes. More than half of employees with household incomes greater than $100,000 say debt and unexpected expenses are still sources of stress. More than 40 percent of them stress about having inadequate savings.

The statistics on how employee stress impacts productivity are important, but the most surprising finding was the demand for financial wellness programs and how they could increase job satisfaction and retention.

Employee Financial Wellness Statistics 2019

Here are the three most startling statistics about the financial stress employees experience:

50 percent of employees spend more than they earn each month.
37 percent of workers say they have more debt than they can manage.
41 percent of them say they don’t have enough savings to cover three months of living expenses.

According to the report, “Debt, unexpected expenses and inadequate savings are among the most significant sources of financial stress for employees.”

“While long-term savings and planning are the most often-cited needs, employees also need help with short-term goals like budgeting, managing debt and emergency savings.”

Employees Ask for Financial Wellness Benefits

Fewer than one-third of workers have access to financial wellness, but the third that do are putting them to good use. Forty to 60 percent of those with financial wellness benefits have used them in the last three years. Here are the two big takeaways from employees without access to financial wellness benefits:

60 percent of employees would be more likely to stay at a job if their employer offered financial wellness benefits.
71 percent of workers would be comfortable discussing financial matters at work with a financial professional unaffiliated with their employer.

Communication is key for any benefits offering, but more than 40 percent of employees don’t feel adequately informed about the benefits and programs their employees offer. How can employees better communicate benefits? Employees cited a clear explanation and easy access as the two most important factors that would make them more likely to use a benefit.

Financial wellness programs that give employees direct access to the personalized tools they need to dial down their financial stress, like Best Money Moves, can help organizations improve their productivity, retention and job satisfaction.