Over the past decade, we’ve seen employers shift the responsibility of retirement and health care decisions to the employee. But when it comes to broad financial wellbeing, the reverse is happening. Today, 14 percent of employers have a financial well-being strategy for their workforce which is expected to grow to 62 percent in just three years. A worker’s ability to confidently manage today’s finances while preparing for the future is driving more stress in the workplace. With approximately three out of four U.S. workers living paycheck to paycheck, financial stress can compound health issues such as anxiety and depression. Employers see the value in acting before it creates short-term productivity issues and long-term retirement problems. Investing in educational programs or savings tools can ease employees’ stress and help them feel more confident in their ability to manage their financial lives today and in the future.
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Massive swings in market volatility also make it more challenging to manage investments. Around the globe we’re living longer, and retirement and pension plans are facing a deficit of close to $1 trillion. Our recent research shows only one in three U.S. workers are ready to retire at 67– delaying retirement or reducing retirement income is becoming a reality.
Indeed, prioritizing overall financial wellbeing is imperative to increasing the population’s overall education and best plan for their financial future. Regardless of the specifics of the program, organizations with financial wellbeing programs tend to have more employees contribute to their retirement plan, feel satisfied with that plan and save for health care expenses.
-Cary Grace, CEO, Global Retirement and Investment, Aon