According to a PwC survey, 54% of employees are stressed about their finances. * And it’s no wonder, since the majority of Americans are unable to cover a $500 or $1,000 unplanned expense. **
Insurance professionals may be in a unique position to help employers address this issue, which can impact employee productivity and a company’s bottom line. But how? Here are five ways employers can help their employees save for a rainy day.
- Provide education
Worksite education can be the key to engaging employees and helping them select a benefit package that best fits their situation. Additional education, such as retirement planning seminars, financial literacy courses, and other self-directed training can go a long way to employee financial wellness.
- Automate retirement savings – and increases
Knowing how much and when to save can be overwhelming. More and more companies are setting default 401K contributions at maximum match levels, and some are taking it a step further with programs that automatically increase the contribution throughout the year, or in conjunction with annual merit increases.
- Expand wellness programs
Traditional wellness programs focus on health and fitness, but employees are also looking for information on financial planning. Expanding access to financial advisors and incorporating financial challenges into a more comprehensive wellness program can be a valuable addition to a total rewards benefits package.
- Maximize easy ways to save
Pre-tax health spending accounts provide an easy way for employees to save on qualified medical, dental, and vision expenses. Make sure that employees understand account rules and are taking full advantage of available benefits.
- Offer voluntary benefits
After health insurance pays its portion of costs related to a medical event, employees could still be facing hefty bills for copays, coinsurance and deductibles, especially as more employers move to high deductible health plans. Voluntary benefits, such as accident, critical illness and hospital indemnity insurance, can help fill the gaps in coverage. Even better, these products can be tailored to meet the needs of any major medical coverage – and, employers can make the products available at no cost to them.
Are you talking about voluntary benefits with your clients? Ask us about our new Hospital Indemnity insurance.
*Source: Employee Financial Wellness Survey, PwC, 2018
**6 in 10 Americans don’t have $500 in savings, CNNMoney (New York)