“In studies that I have seen concerning participants that have gone through comprehensive wellness programs, you can see much higher participation rates in 401(k) plans. This is good for the employer as it leads to more engaged employees, less absenteeism, lower stress, and lower healthcare costs, which are all related to the broader concept of employee wellness. The financial wellness side of the business needs to look at the health and wellness side of the business. There are key lessons and best practices to be learned.” — Ron Bush
A wellness craze in the healthcare industry has risen to the top of public interest over the past several decades and for good reason. Sometimes, things progress to a point where results stagnate, and the solution is to return to a previous platform that is known to work. When it comes to preventative healthcare, tried and true actions such as holistic treatments, proper diet, regular exercise, and other commonsense methods that have been in existence for eons often help to provide true wellness. Traditional medicine isn’t discarded, but these basic elements are given more attention and applied in tandem to achieve a higher standard of physical and mental well-being.
The same principle applies with financial wellness. Traditional methods for teaching employees about retirement savings through available vehicles aren’t thrown out but are instead enhanced by basic educational programs that show how to make necessary life adjustments to ease financial pressures. As basic adjustments are made to daily habits, healthier financial wellness is achieved and can be carried throughout the journey of life toward retirement. When these commonsense methods are focused on and applied, employees experience real relief in their daily lives, which in turn produces positive results in their job performance. Employees can then continue along this route satisfied with their financial position, which allows them greater opportunities to utilize retirement investment plans. If they take advantage of such opportunities, they can have more money tucked away for their golden years.
By utilizing new and improved communication systems and technologies, in tandem with traditional institutional communications and enrollment meetings, we now have the tools to help employees meet their goals. The result is that employees are touched where they live to relieve immediate personal stress and pain caused by the weight of financial burdens, thus positively impacting them NOW.
Financial wellness programs address the entire financial spectrum of the individual’s overall health concerning their finances. This approach broadens the focus to both identify and then treat financial issues that are hindering a variety of financial goals, including saving for a new home, college education, emergency funds, and retirement. Programs dealing with financial wellness, therefore, consider all areas of a person’s financial life and help them make adjustments that free up funds for important and fulfilling objectives.
Traditional savings programs tend to focus on long-term goals that consist of end-of-the-journey retirement savings. However, financial wellness programs also take into consideration more important short-term needs of employees, which can provide them with relief from financial pressures over time. This balance between addressing today’s needs and encouraging tomorrow’s planning teaches employees to not only plan for their future but to also effectively manage their financial decisions throughout the journey. The end result is a financially healthier and more satisfied employee that is planning for their retirement efficiently.
Mark Singer, CFP®, AIF® is the President and Co-Founder of Financial Literacy Toolbox. Mark is a leader in the world of financial education. Mark is the author of three books, a frequent speaker at events, and is the creator of The Financial Literacy Toolbox, a virtual resource center to help financial advisors, wellness providers, and institutional retirement services firms change the conversation about financial wellness.
