savings Archives

Financial Wellness Research Warrants Worry

by LizStevens | Sep 24, 2018 | Blog

Research from Prudential reveals just how far Americans are from reaching financial goals, like having enough savings to get through retirement years, as well as how optimistic or pessimistic they are about their financial future.

More than half of Americans believe their financial wellness is below average based on their level of income, savings, assets and debts, according to Prudential’s first-ever Financial Wellness Census. Out of 22 common financial goals, most Americans only have two under control: staying in their home when they retire and keeping up with current expenses.

“Our relationship with money can affect our physical health, stress levels and state of mind, family dynamics and even our performance at work,” says Stephen Pelletier, executive vice president and chief operating officer of Prudential’s U.S. based businesses. “Only by listening can we truly learn what people need to help them get on the path to financial wellness and stay on the right track throughout their lives.”

Almost a third of Americans think they are better or worse off financially than they actually are. Nearly 20 percent perceive themselves to be in good financial shape despite having a low level of objective financial health. Over 10 percent of those with high levels of objective financial health are still pessimistic about their finances.

Respondents ranked having enough savings to last through retirement years and the ability to pay for future healthcare needs as the most important financial goals. Surprisingly, for more than 70 percent simply keeping up with current expenses is their primary financial focus.

Even though less than half of Americans are on track to achieve their financial goals, more than 50 percent are optimistic that they will eventually achieve them. Prudential’s report offers a reason for this positivity discrepancy, finding that working with a financial advisor correlates with a more positive outlook on financial health.

It’s not enough to offer retirement benefits if employees don’t know how to manage and grow their 401(k) (or finances in general). “The journey to financial wellness is deeply personal,” says Niharika Shah, Prudential Financial’s vice president of brand marketing. Financial wellness benefits that include personalized support features help employees learn more about improving their financial health, reduce their financial stress and bring them closer to achieving their financial goals.

Do You Know How Unprepared Employees Really Are?

by LizStevens | Aug 28, 2018 | Blog

Long-term healthcare is expensive and although most Americans will need it, it’s surprising to know how unprepared employees really are.

Long-term healthcare is a tough topic to discuss because it forces people to confront their mortality, but new research from Moll Law Group underscores the importance of saving for the costs of long-term care, like a nursing home or assisted living.

More than 60 percent of Americans have nothing saved for long-term care. Why? Less than half of Americans think they’ll need it. Unfortunately, 70 percent of Americans will.

That means there are millions of people that are seriously unprepared for future healthcare expenses and some of them are your employees.

Housing costs for long-term care are astronomical. Average costs for assisted living are $45,000, semi-private nursing homes are $87,775, and private nursing homes are $97,455. These housing costs are a far stretch from the $25,000 in savings Americans thought would be enough to cover long-term care.

This isn’t just a crisis for the future, it’s a concern many face presently. A new survey from Bankrate found that “For younger baby boomers (ages 54 to 63), money is the top concern keeping them up at night. Thirty-nine percent say financial worries occasionally keep them from falling asleep.” Younger baby boomers are wrestling with high costs for education, housing, and they have aging parents to worry about. All of these factors pull them further from their retirement goals and increase their financial stress.

The process and associated costs of aging don’t need to be unexpected, but often (at least for half of those surveyed by Moll Law Group) the decision to place a loved one in long-term care is unexpected. Although there’s no knowing if or when it will happen, by understanding the likelihood and estimated expenses families can make the right decision without as much financial strain

It’s time to stop avoiding the inevitable and start preparing for unfortunate events that are likely to happen later in life. Employers should encourage employees to contribute to their 401(k) program and offer an employee match. It’s worthwhile to re-approach healthcare and retirement plans to see where employers can better help employees tackle the incredible cost burdens they, or a close family member, will most likely encounter.

Retirement Research Will Blow Your Mind

by LizStevens | May 30, 2018 | Blog

In the Best Money Moves Roundup, we run down the latest news on retirement, student loan debt assistance, and retention.

Will your employees be ready for retirement?

The Federal Reserve’s recently published report shows some improvement in the economic well-being of U.S. households, but it also highlights some startling concerns. More than 60% of Americans are not on track with retirement savings. Nearly 25% skipped necessary medical care because they couldn’t afford the cost. These findings echo results from an NHP survey finding that almost 75% of Baby Boomers are delaying retirement due to unforeseen medical expenses.

What can you do about it?

Ensure that your employees fully understand any and all healthcare or retirement benefits you offer. Giving them access to an agent they can direct their questions to is helpful, but it would be even more beneficial to have company meetings with an agent to address any concerns and go over any changes in plans offered. This will alleviate some of their financial stress and in turn make for a more productive office.

Employers helping with student loan debt. Hundreds of companies are starting to offer student loan assistance benefits to lure new talent and address this $1.5 trillion national concern. Learn more about this developing trend.

Personalized support boosts retention. Employees want more than a paycheck and a benefits package, they want support from their employer that makes them feel cared for as an individual. Find what works for your employees.

Financial incentives for healthy employees. Many organizations offer financial incentives for employees who voluntarily sign up for fitness challenges because being physically active reduces absences and medical costs. Four ways to make fitness incentives work.

The untapped talent market that’s shaking up recruitment. There are 3-7 million potential employees from underserved communities that are likely to stay with a company twice as long as Millennials. Here’s the research that backs it up.

How do your employees feel about the office aesthetic? Employees who have control over the design and layout of their workspace are healthier, happier and most importantly – more productive. Give employees an office they want to be in without breaking the bank.

Are you recruiting on Facebook? LinkedIn is a great social media platform for recruiting, but Facebook might be even better. How it can be an effective strategy.

Should you give your employees cash to quit smoking? Smokers cost employers $3,000-$6,000 more per year than a non-smoker. Why it might be less costly to pay them to quit.

IRS changes 2019 HSA contribution limits. With growing concern over the costs of healthcare the IRS raised contribution levels to HSAs for 2019. What does this mean for you?

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