DOING MORE FOR EMPLOYEES THROUGH FINANCIAL WELLNESS
According to a new survey, employers’ sense of duty regarding employees’ financial wellness continues to grow. The JP Morgan Asset Management 2023 Defined Contribution Plan Sponsor Survey reports that nearly 90% of surveyed sponsors feel a “very high” or “somewhat high” level of responsibility, up from 74% in 2019 and 59% in 2013, the first year of the survey.
The increasing interest by plan sponsors in providing financial wellness programs is directly in line with how employees feel about financial wellness. According to a JP Morgan’s 2021 Defined Contribution Plan Participant Study, more than 9 of 10 participants feel that financial wellness programs are an important benefit. In addition, nearly 7 of 10 surveyed participants believe that their employers have a responsibility to help with employees’ financial wellness. Employers who add this benefit will likely bolster recruitment and retention efforts as well as overall employee engagement and productivity.
Goals and Program Features
Four out of 10 surveyed sponsors report offering a financial wellness program beyond their retirement and health benefits, and an additional three out of 10 are considering offering one. The most frequently cited goals of these programs are to help employees’ financial stability, retirement planning and financial education. Additionally, sponsors with a financial wellness program more often see their retirement plans as effective in meeting key goals, compared with those without such a program. And almost all (95%) believe they are helping make sure employees have a financially secure retirement.
Surveyed sponsors offering a financial wellness program are significantly more likely to provide income protection benefits, such as life and disability insurance. One-quarter offer student loan debt assistance, and around four out of 10 offer emergency savings benefits, one-on-one financial coaching and/or debt management assistance.
Growth of Other Wellness Benefits
There has been a clear expansion into other wellness-related benefits as employers have recognized the interconnection of overall employee financial and personal wellness, productivity and turnover. More than seven out of 10 surveyed sponsors report offering employees life insurance, and six out of 10 offer disability insurance and mental health benefits. In addition, half make health savings accounts (HSAs) available, and just under half provide paid parental or caregiving leave.
How GRP Can Help
Interested in learning more? Ask your financial advisor about the features and benefits of our proprietary financial wellness program that includes a comprehensive online learning platform, an extensive library of financial planning tools and resources, as well as financial coaches who can work directly with your employees.
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. Investment Advice and 3(38) Investment Fiduciary services offered through Diversified Financial Advisors, LLC, a Registered Investment Advisor. 3(16) Administrative Fiduciary Services provided by PISTL Service Corporation. Discretionary Trustee services provided by Printing Industries 401k Trustees. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.