Financial Wellness – What Does That Mean?
Financial wellness is a term that can be used in many ways: financial wellness programs, benefits, tools, and workshops. I’ve been in the financial services industry for many years, and I still wonder about the meaning. That got me thinking, there must be a common thread to financial wellness. What could it be?
Financial wellness is about people. It’s about helping people feel confident about their finances and their ability to manage them. The COVID-19 pandemic has driven that connection home. It has touched every aspect of our lives and pointed the spotlight on financial wellness.
According to a recent survey conducted by Vanguard, about 63% of Americans polled have been living paycheck to paycheck since the pandemic began. They also found that just 55% of investors had a dedicated emergency savings fund going into the pandemic. Of that group, only one third had enough money to meet expenses for two months or less. Conditions have caused about 8% of Americans to stop or postpone contributing to their retirement account.
As an employer, what can you do? If you don’t have a financial wellness program in place, consider implementing one. Vanguard found that 90% of U.S. companies either have a financial wellness strategy in place or are developing one. Financial wellness programs should address the unique needs of the individuals who are employed at your company. After all, everyone’s circumstance is unique to them and their journey. The goal of a successful financial wellness program is to bring employees financial and emotional security now and through retirement.
Going through the pandemic has shown us that there are many priorities vying for our attention and resources, including housing costs, healthcare expenses, saving for emergencies, and funding our retirement.
Your Employee Wellness Program
Savant Retirement Plan Services is committed to helping you manage your employee wellness program. Throughout 2021 we will be developing financial wellness tools to assist you in helping your most important resource, your people.
Patricia L. Hutchinson
Director of Retirement Plan Services