Employers and plan sponsors are increasingly focused on wellbeing (wellness) programs—and “it’s not just lip service.”
More specifically, nearly all employers (92%) that responded to a recent survey said they are likely to expand their financial wellbeing programs in ways that extend beyond the retirement plan, with two-thirds indicating they are very likely to take action in 2020.
Illinois-based research and consulting firm Alight Solutions released its Hot Topics in Retirement and Financial Wellbeing report, which polled over 130 organizations that employ 5.5 million workers. It found that employers are expanding beyond just retirement plans to create healthier wallets, bodies, minds, and lives for their employees.
“Of course, there’s still room for improvement for employers to meet their employees where there are, providing the right education and tools during the right stages of their personal and professional journeys,” the company said in a statement.
According to Alight:
Part of a total wellbeing initiative
Fully 72% of employers said that they include financial wellbeing as a pillar of a broader wellbeing program—an increase of 20% over the last two years.
More mature strategies
The state of employers’ financial wellbeing strategies has matured since last year. The number of employers who have a concrete strategy stands at nearly a third, and those who have already executed their strategy increased to 13% (up from 8% in 2019).
Divergence on the wellbeing journey
Employers are focusing their lion’s share of energy on employees in the foundation stage (59%), where there have been fewer tools/services available historically. Alight research showed the highest percentage of employees reside in the growth stage (37%), where sophisticated DC plans can help maximize assets.
“Financial wellbeing is a broad topic encompassing everything from debt management and budgeting to tax optimization and estate planning,” Alight added. “Because of this complexity, most employers are taking a strategic approach to developing their programs. Compared to last year, there has been an uptick in the percentage of employers that have a fully executed strategy.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
