Workplace Financial Wellness for the Present and Future
The 401(k) participants surveyed are, by and large, staying on top of their finances, with most (72%) reporting that they have some money left at the end of the month after they’ve paid their bills. But respondents may be missing out on opportunities to grow their assets: only one-fifth either put that extra money towards their 401(k) or invest it in the markets (19% and 21%, respectively).
Participating in a workplace financial wellness program can help employees understand how to put their money to work for them, ultimately helping to alleviate financial stress. According to the survey, participants would be highly likely to take advantage of resources at work, including online tools to help plan for retirement (88%) and help from a financial professional to develop a financial plan (77%).
Respondents also named the areas of retirement planning with which they would most like assistance:
Calculating how much money to save for retirement (43%);
Receiving specific advice on how to invest their 401(k) (39%);
Determining at what age they can afford to retire (39%);
Figuring out what their expenses will be in retirement (36%).
“Employers have the opportunity to help their workers by offering financial wellness programs that provide guidance on some of the harder questions individuals face as they manage their day-to-day finances while saving for retirement. Unfortunately, only about half of the people we surveyed have access to this type of program,” Anderson stated. “Employers should consider how these value-added programs can strengthen their workplace benefits offering. Financial wellness programs are a true win-win: not only can they help to alleviate the stress employees feel about retiring with enough savings, but they can also increase employee engagement and foster loyalty.”
About the Survey
This online survey of U.S. 401(k) participants was conducted by Logica Research (formerly Koski Research) for Schwab Retirement Plan Services, Inc. Logica Research is neither affiliated with, nor employed by, Schwab Retirement Plan Services, Inc. The survey is based on 1,000 interviews and has a 3 percent margin of error at the 95 percent confidence level. Survey respondents worked for companies with at least 25 employees, were current contributors to their 401(k) plans and were 25-70 years old. Survey respondents were not asked to indicate whether they had 401(k) accounts with Schwab Retirement Plan Services, Inc. All data is self-reported by study participants and is not verified or validated. Respondents participated in the study between May 3 and May 16, 2018.
Detailed results can be found here.
About Charles Schwab
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The Charles Schwab Corporation provides services to retirement and other benefit plans and participants through its separate but affiliated companies and subsidiaries: Charles Schwab Bank; Charles Schwab & Co., Inc.; and Schwab Retirement Plan Services, Inc. Trust, custody, and deposit products and services are available through Charles Schwab Bank. Schwab Retirement Plan Services, Inc. is not a fiduciary to retirement plans or participants and only provides recordkeeping and related services.