The average 401k participant can use all the help they can get to guide them toward good choices that make the most of their wealth accumulation and protection benefits choices – and ease the “money worries” burden weighing down all too many employees and hurting their job performance.
To that end, Massachusetts Mutual Life Insurance Company (MassMutual) on March 18 announced the launch of a new workplace financial and benefits planning tool–MapMyFinances–to help workers assess and balance their short- and long-term financial needs.
The MapMyFinances tool, which replaces MassMutual’s MapMyBenefits tool, is available automatically at no cost through employers that use MassMutual’s 401k or other defined contribution retirement plan services, voluntary insurance benefits or both. The tool provides users with a personalized financial wellness score to help them assess their overall financial situation and provides guidance to help workers prioritize their coverage choices based on their family situation and budget.
“MapMyFinances is breakthrough financial wellness technology designed to help all Americans secure their financial futures and protect the ones they love,” said Tina Wilson, Head of Investment Solutions Innovation. Wilson adds that whether plan participants are just starting their career, preparing to retire or somewhere in between, MapMyFinances is intended to help them make the best choices about saving for retirement, protecting their family and securing their financial future.
Financial wellness score
The new tool provides users with a personal financial wellness score to help them ascertain their relative financial health. The score is compiled through a series of questions about the user’s family situation, budget and personal finances, including retirement savings, health care, life insurance and other protection benefits; and debt such as college tuition, credit cards, mortgage, car loans and others.
Based on the data provided, the tool analyzes the user’s personal financial needs budget, and then sets priorities accordingly, creating a to-do list of simple, actionable steps to improve his or her financial wellness score. While health care coverage is typically a top priority for most people, other financial needs such as retirement savings; life, disability, accident and critical insurance coverage; college savings; debt reduction and others vary depending upon the person’s family situation and budget.
The priorities are updated as users input new data to reflect life changes such as the birth of children, children entering college and more.
Retirement and protection benefits
MapMyFinances connects to the plan sponsor’s available benefits, including retirement plans, health plans and other insurance protection. Employers can choose to offer MassMutual financial products such as a defined contribution retirement plan as well as life, accident or critical illness insurance. The technology platform can also connect to products and services not offered by MassMutual.
“Later this year, Wilson said MassMutual will add additional financial benefits and services through MapMyFinances to help workers solve other pressing financial needs such as debt management, medical and emergency savings, tuition reimbursement and budgeting.
Americans bring money worries to work
Wilson pointed out that many Americans–especially middle-income workers–have acute financial needs.
Thirty-seven percent of respondents to MassMutual’s Middle America Financial Security study reported feeling “not very” or “not at all” financially secure, while the majority (54%) described themselves as “somewhat secure.” The internet-based research polled 1,010 working Americans ages 25-65 with annual household incomes between $35,000 and $150,000 and who participated in making household financial decisions.
Money worries accompany many Middle Americans to work. Four in 10 study respondents said they worry about money at least once a week while at work. Half (51%) of Americans who are less affluent–those earning less than $45,000–reported bringing their financial concerns to work at least once a week and 20% said daily, according to the study.
Overall, nearly two-thirds (65%) of the respondents said a financial emergency or major expense was one of their top worries. Overall, 22% cited debt as their top financial problem with more Millennials and Gen Xers saying so. As Middle Americans age, health care costs rise in importance, becoming the No. 1 concern for Boomers.
“Sadly, financial struggles weigh heavily on many middle-income Americans,” Wilson said. “With the introduction of MapMyFinances, MassMutual is working to lighten their loads and help guide them to the path towards greater financial security.”
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
