JPMorganChase has committed $7 million in supporting a workplace benefits program that would improve the financial wellbeing of low-to-moderate income (LMI) workers.
The program, launched by nonprofit Commonwealth and named “Benefits for the Future,” is intended to boost the financial wellbeing of 2.5 million LMI households, which disproportionately involves Black, Latinx, and women-led communities.
Commonwealth cites research from the Financial Health Network, which found that less than one-third of workers have access to workplace benefits that meet their financial needs.
Another EIG analysis in 2023 found that only 30% of the low-income workforce has access to an employer-sponsored retirement plan.
Commonwealth believes that not only can such benefits support employee wellbeing, but it can also drive positive business outcomes, including increased worker productivity, engagement, and retention.
“With this ambitious, collaborative undertaking, we will build on the continued impact and influence of this important work, address key elements of financial vulnerability, and ultimately build support for long-term systemic changes in the workplace that reduce employee financial stress and generate demonstrable business value for employers,” said Timothy Flacke, co-founder and chief executive officer of Commonwealth, in a statement.
The program will begin in Chicago, Illinois and Columbus, Ohio, where Commonwealth says it will work with employers and benefit providers to design, test, and scale workplace savings, debt reduction, and wealth-building strategies built for LMI workers. It will feature benefits providers and large employers with “significant employee bases earning LMI,” or less than 80% of the median family income in the area and will last for three years. This can include employers with over 20,000 U.S.-based employees who make under $75,000 a year.
Commonwealth also says it will apply the insights from year one to future stages, including expanding the initiative to additional local markets.
JPMorganChase says its partnership with Commonwealth is the latest in its efforts to boost financial health for company-wide and nationwide employees.
“Workplace financial well-being programs are an important tool that can help people improve their financial health and build wealth in the long term. At JPMorganChase, we recognize the value of investing in employee benefits programs, and the impact it can have on employee financial health,” said Sharad Ganesh, chief product officer, Workplace Solutions at JPMorganChase. “Through this collaboration with Commonwealth, we’re excited to drive greater workplace innovation and help scale what works.”
More information about Commonwealth’s “Benefits for the Future” can be found here.
Correction: An earlier version of this article used JPMorgan Chase & Co., instead of the firm’s updated name, JPMorganChase. This has been corrected.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.