Successful Financial Wellness Programs Go Beyond Just Education

Post on April 15, 2019

Recordkeepers consistently cover topics that cause concern among participants—such as taxes and emergency savings—in their financial wellness education offerings, but not so with financial wellness tools, Corporate Insight, a company that evaluates recordkeepers’ platforms, found in a two-part series analyzing financial wellness tools and education.

Claire Daly, a research associate with Corporate Insight, tells PLANSPONSOR at the end of 2018, Corporate Insight published A Roadmap of the Financial Wellness Ecosystem, a syndicated study that takes a comprehensive look at financial wellness and the landscape of employer program offerings, and from that study, came up with its own definition of financial wellness.

“We consider a person to have achieved a state of financial well-being if they possess a manageable level of stress associated with current and future financial matters; a manageable level of debt—or no debt at all—that can be paid off without financial penalty or significant stress on an individual’s financial situation or lifestyle; enough disposable income to maintain a desirable lifestyle that is within reason and an ample emergency savings fund that can sustain an individual’s lifestyle for a bare minimum of three months; and a financial acumen that will allow them to plan appropriately for future goals and respond to unforeseen financial obstacles,” she says. “Therefore, a successful financial wellness program helps employees make progress towards, achieve and maintain these.”

Click here to read the full article...