See The Greenleaf Financial Wellness Video:
“Beyond Your Retirement Plan.”
A generation ago, it was not as important for individuals to be as financially astute. There were not as many choices or as much information available. Many were enrolled in pension funds that promised retirement income. The retirement income responsibility fell on the employer offering the pension. In addition, life expectancy was a lot shorter than it is today. Health care was broader based. But now, the average life expectancy of a couple age 65 is age 85 according to Social Security Administration!
We believe financial literacy efforts need three key qualities to be effective.
The program needs to be;
- ongoing and objective
- interactive and informative
- relevant to each individual
Today, those pension plans are less common and except for Social Security, the burden of saving for retirement has fallen squarely on the shoulders of the individual.
Studies show that most Americans are not prepared to manage their finances through what is likely a 20 to 30-year retirement. This coupled with ever increasing longevity, is creating additional stress for the employee and employer to manage.
- 60% of American households don’t have at least 3 months’ savings on hand (2012 FINRA study)
- American Psychological Association (APA) identified money as the predominant cause of stress among Americans*.
75% of adults reported being stressed about money at least some of the time and 22% reported extreme stress over money in the past month.
- The Occupational Safety and Health Administration (OSHA) estimates the medical cost of stress to be upward of $300 Billion per year. The medical expenses incurred by employers come in the form of high health insurance premiums, increased absenteeism, and decreased productivity.
- According to a survey by PriceWaterhouseCoopers, 97% of employees have been impacted by their finances while at work*. Such behaviors cost employers an average of $8,875 per employee per year*.
Our programs provide an objective resource that enlightens employees about debt, cash flow, budgeting, investments, saving and how to make sound benefit and healthcare choices.
Financial Wellness can help your employees have a more fulfilling work experience. A well-designed wellness program helps employers recruit top talent, decrease employee turnover and gain a competitive advantage.
Financial Wellness is a growing trend. Recent studies say that 25% of employees are likely to develop budgeting and money management skills. AON/Hewitt reported that 75% of companies are “very likely” to expand employee benefits to include a financial wellness component. 36% of employers are “very likely” to focus on employee well-being, while 30% are “very likely” to offer services to help with day-to-day money management.
Why Offer Financial Wellness?
These programs can improve overall financial well being and reduce employee stress. Human resources can be impacted by decreases absenteeism and increased productivity. From a benefits perspective, a program can help drive higher retirement plan participation rates, balances, and even help employees retire on Time. Studies have shown that wellness program can reduce Healthcare Expenses and raise workplace morale.