financial-wellness-in-the-workplaceThe Case for Financial Wellness

ADP sees financial wellness programs as an emerging opportunity for financial professionals. That’s because nearly three-quarters of Americans worry about finances. Financial stress can affect physical health and productivity at work. Even with the improving economy, the number of people reporting financial stress hasn’t decreased. 64 percent of workers cite financial worries as the main stressor in their lives. These facts contribute to demand for employer-sponsored financial wellness programs.

On the other side of the coin, employers are aware of the financial stressors facing employees and the impact on performance and productivity. Many feel a responsibility to offer financial literacy and education. Surprisingly, small employers with fewer than 100 employees are most likely to offer financial wellness according to recent data.

Making informed decisions about retirement planning, insurance (life, disability, and long-term care) and the right health plan option is complex. And there are other educational needs as well, such as how to choose a mortgage, reduce student debt and maintain a budget. For a financial professional, these topics are elementary. Not so much for consumers. Universally, they are eager to learn more, especially in the workplace.

What is Financial Wellness?

Clearly, both groups, employers and employees, are interested in financial wellness plans. What exactly is financial wellness? The top three components of a healthy financial status are 1) Not being stressed about finances, 2) Being debt free, and 3) Having sufficient level of emergency savings.

A corporate wellness program should help employees achieve those three goals, at a minimum. Beyond that, a financial wellness plan can address:

  • Cash flow management
  • Choosing insurance products such as income protection and life insurance
  • Debt reduction
  • Shopping for a mortgage
  • Renegotiation of student loans
  • Establishing a budget
  • Shopping for and managing credit cards
  • Preparing for retirement

Getting started

Start the conversation with business owner clients by sharing information about employee’s financial stress level and how it impacts business productivity. Advisor’s working in the multi-life market have a platform to discuss incorporating financial wellness in the employee benefit program. Wellness programs have investment returns up to $1.50 for every dollar spent.

You may already have expertise in some of these areas. Supplemental tools for others can be found on various websites. The Consumer Financial Protection Bureau offers free downloadable tools suitable to use with clients and program participants. Another reliable resource is the FDIC.

The demand for these types of programs is growing. Very few advisors are in this market, but many see it as an attractive opportunity. Of course, when it comes to discussing disability insurance with program participants or presenting a multi-life program for disability or long-term care insurance, you can look to DIS to provide the back office support you need to be successful. Ready to get started? Just give us a call.

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