“It can’t wait until tomorrow; it has to begin today.” —Bob Benish. Common sense is a valuable commodity. Although there’s an entire industry dedicated to helping others save for retirement (and spending billions of dollars and millions of hours on education programs in the process), the problem remains—people simply aren’t not saving enough. says financial wellness experts.
Part of the reason is that we begin the retirement “story” at chapter three, instead of setting the foundation first. People need to learn how to effectively manage their finances today before they can effectively save for tomorrow.
People will not (and cannot) focus on saving for retirement if they are struggling with current needs, such as credit card or school debt and living paycheck to paycheck. They might not even know what a budget is, let alone how to live within it.
The most effective 401(k) wellness programs are those that start with the basics. The basics include living within their means, controlling expenses, and finding the way to reduce and even eliminate debt.
Bottom line—people are financially stressed and they aren’t leaving that stress at home, but bringing it with them to the workplace. It therefore impacts employers directly.
In order to address the problem, we need a holistic view of wellness, one that removes any barriers between 401(k) financial wellness, physical wellness and behavioral wellness. We need integrated benefit programs in the workplace that look at the whole person. And we need financial literacy programs in our schools, our communities, and in our jobs. Without a commitment to financial wellness, America faces socioeconomic challenges and an exacerbation of income inequality, the very definition of a society with “those that have it” versus “those that don’t.”
The key to effectively addressing the issue is for all relative players to work together to examine the causes of the current knowledge imbalance, and how it impacts the daily lives of American workers. Only then can we offer and implement solutions.
Financial services organizations need to work closely with employers to provide balanced employee education and communication programs when offering retirement plans.
My particular passion involves exploring the root causes of financial illiteracy and how it can be corrected. It involves an exploration of practical solutions that can be implemented to improve financial literacy in the workforce, help relieve employee stressors, improve productivity among workers, and help them to more effectively save for future retirements.
Mark Singer, CFP®, is a seasoned financial planner and the founder of Safe Harbor Retirement Planning, where he has been guiding individuals through retirement planning since 1986. With nearly four decades of experience, Mark has assisted thousands in crafting personalized retirement strategies that align with their unique goals and circumstances.
An accomplished author, Mark has penned several books, including Don’t Outlive Your Money in Retirement! 7 Key Steps, The Changing Landscape of Retirement—What You Don’t Know Could Hurt You, and The New Financial Wellness: Changing the Conversation. These works offer practical insights into retirement planning and financial wellness.