BlogsImproving Financial Wellness for Your Employees

February 27, 2017, by Ryan Miller

Financial wellness is a concern for many employers. You want your employees to be taken care of and be set up for long-term success by the time they retire, but there is only so much you can do for them. Studies show that roughly 70% of Americans are living paycheck to paycheck. 24% of their take-home pay is spent on debts that aren’t related to mortgages.

So why is financial wellness important?

Whether your employees are young, in the middle of their careers or nearing retirement, it is good for them and your business to have smart spending and saving habits. When they can proactively control their money and be set for retirement, it’s a win-win scenario. That’s why many progressive employers are implementing financial wellness services and training to help their employees build long-term financial stability.

It begins with education. More and more employers are taking the steps necessary to teach financial wellness strategies to their employees. Then, there are plans that can be put in place to help them set aside more money for retirement. Of course, having a company-sponsored 401(k) plan with employer matching is a great place to start. Beyond that, some employers offer options to convert the balances of participants into retirement income. Even if someone has a reasonable amount in their retirement account(s), they may need help establishing a payment plan so those funds last longer.

Reduce Financial Risk
There are ways of reducing risk, including investing in asset portfolios that match the plan’s liabilities, purchasing annuities, and offering a lump-sum window to terminated vested participants.

Another key issue is educating all employees on how much to contribute to their retirement accounts. This usually takes place during the annual enrollment process, though it’s never a bad idea to provide educational resources throughout the year. Financial wellness needs to be a subject that is discussed regularly in order for the ideas to really sink in.

Put the Right Financial Wellness Systems in Place
Ultimately, the two primary goals are to make sure employees both save enough money for retirement and then know how to properly handle those funds when the time actually comes. There are some great financial wellness programs out there such as SmartDollar by Ramsey Financial Wellness that could be helpful.

Contact Centennial today for a financial wellness review and evaluation of your current HR benefits. Our financial services team can help you set up the right financial wellness systems for your company. Make your business more successful while positioning your employees for better financial success now and in the future.

To schedule a consultation with one of our team members, click here.