Money makes the world go round, but it can also cause stress. That is why many employees seek employee financial wellness benefits.
There are various online tools and calculators that assist with budgeting, saving for retirement and debt management as well as one-on-one financial coaching programs and emergency savings funds.
1. Health and Wellness
Employee health and wellbeing is central to an organization’s overall success, so an effective employee wellness program must encompass mental, physical and financial wellbeing components. Employees experiencing difficulty financially may become stressed which has an adverse impact on both mental and physical wellbeing; missed work can ensue and morale decrease resulting in missed productivity and decreased morale impacting an organization’s bottom line negatively. Furthermore, employees facing difficulties saving or investing their funds impedes long-term financial security for them as a result.
Employers offering financial wellness programs can help their employees improve their financial health and reach personal goals such as saving for retirement, creating an emergency fund or paying down debt. Some may offer a “split to save” feature where employees can opt-in to automatically divert a fixed amount or percentage of each paycheck into savings each pay period.
As more employees seek financial wellness programs from their employers, it has become more urgent to find solutions that will both satisfy employees and benefit the company as a whole. With so many platforms and programs out there to consider – some charging employees to use them while others backed by major banks – companies must do their due diligence when selecting one for themselves or employees.
Financial wellness perks can show your employees that your company cares for their wellbeing, which could help to attract and retain talent. Furthermore, this could give your organization a competitive edge in the hiring market and demonstrate why you are an employer of choice. However, it is important to remember that there is no universal solution; accordingly your organization should carefully plan out and schedule any initiatives they wish to implement; this will help ensure their goals are achievable while taking into account any organizational, spatial or financial limitations.
2. Education
Education is an all-encompassing concept that provides many benefits for both individuals and societies alike. Beyond simply learning, education can play a crucial role in shaping morals and values that enable smart decision making as well as personal growth that fosters confidence and provides fulfillment.
Education can be financially advantageous to an individual. A college degree can lead to higher salaries, which in turn can help individuals attain financial stability and save more for future needs, like retirement. Furthermore, education helps individuals understand how they should invest their money and avoid common pitfalls associated with investing their finances.
Although some may consider education an unnecessary luxury, it’s essential that it remains part of human development and helps families improve the quality of their lives. Education plays a vital role in alleviating poverty in underdeveloped nations while driving economic development.
Education can also play an invaluable role in global peace and security efforts, providing individuals with the skills needed to become active participants in their local communities, while creating greater understanding of cultural diversity in our globalized world.
Additionally, this education can raise individuals’ awareness of how they can protect themselves against natural disasters and other emergencies, and realize the significance of staying informed on topics like proper nutrition and exercise for ensuring overall well-being.
Education is also a social good, an essential public service that serves all aspects of society. Education promotes equality, offers individuals opportunities to improve their lives and contribute to society, supports financial wellbeing of households across income levels and reduces reliance on already strapped social safety net programs; additionally it builds human capital that spurs innovation and leads to economic expansion.
3. Retirement
Retirement may not always turn out the way we expect it to. Job loss and other life events often cause people to retire earlier than planned; while many would like to remain in their current homes and pursue hobbies and interests within familiar surroundings, that may not always be practical or financially sound for everyone. Sometimes working longer gives one additional income while also providing tax-deferred retirement plans with significant tax-saving potential.
Planning for retirement involves several key decisions: the amount of money needed; expenses such as housing, health care, food and clothing as well as transportation/transit and entertainment? Will you continue working or start up a side business; as well as whether they may need help from their children with expenses.
After calculating your savings, it’s also crucial to identify what type of retirement plan you have. There are two main options – defined contribution and defined benefit plans. With regards to defined benefit plans, they may be funded by your employer and provide a guaranteed monthly amount at retirement time based on factors like salary, age and years of service.
A defined contribution plan (DCP) is an investment account to which both you and your employer contribute. These accounts usually invest in mutual funds or company-sponsored securities such as stocks and bonds, with various investment options.
If you are enrolled in a defined contribution plan, be sure to familiarize yourself with its regulations. Read your Summary Plan Description regularly in order to stay abreast of its workings.
If you are self-employed, consider creating a Simplified Employee Pension IRA or solo 401(k). These retirement plans tend to require less regulation than traditional plans and offer higher contribution limits with increased investment options that may provide higher return. They can even help defer taxes on income and capital gains! To further secure your financial future, meet with a fee-only financial planner to discuss your retirement goals so they can design an ideal savings strategy tailored specifically to you and your situation.
4. Financial Security
Financial security means feeling confident that you can cover expenses, save for the future and handle unexpected emergencies that arise. Financial security provides peace of mind by banishing feelings of fear and anxiety and replacing them with freedom and peace.
Though financial security may seem like an unattainable goal, most individuals can achieve it with hard work and determination. Starting by spending less than you earn and creating a budget and saving emergency savings are all great steps towards financial independence. Furthermore, keeping debt under control while investing wisely as well as having a solid retirement plan are also all crucial elements to successful planning for financial security.
Note that financial security and independence are two different things; financial stability is an excellent step toward financial independence; independence should be seen as something you actively strive towards. Establishing an emergency fund, investing regularly and saving for the future are all ways of creating short-term security; but independence gives you more options for personalizing decisions to suit yourself over time.
Michael has achieved financial security because he can pay his current expenses, save for the future, and cover any unforeseen costs that arise. He spends less than he earns and maintains a low credit card balance as well as having set aside six-month emergency funds; when an unexpected bill arrives he doesn’t panic because he knows he has enough funds available to him to pay it off quickly. In addition, Michael is currently saving for a business venture next year while having put together a comprehensive retirement plan in place.
PNC Thought Leadership Series’ latest event explored financial security as an attainable goal for most. Topics discussed included budgeting, saving early and how to maximize salary. Led by Jenkins MBA student Beth Philemon with assistance from Realm Investment Consulting Cherry Bekaert and Guardian Wealth Partners experts; you can view a full recorded webinar here.