Best practices in developing a financial well-being strategic plan

Financial well-being means developing habits with money that meet your current needs and help you reach long-term financial goals like retirement. 

Use the prompts below to explore why you want to focus on this, what your priorities are, and how to create a strategy that aligns with your organization’s goals. Also, think about which team member will oversee the program. 

If you get stuck, reach out to your Marsh McLennan Agency service team. They can help you create a plan that fits your situation, goals, and budget.

PwC’s 2023 Employee Financial Wellness Survey looks at the impact of finances on workers:

• 57% of employees say money is their biggest source of stress.
  
  
• Financially stressed workers are five times more likely to be distracted by their finances at work. 
  
  
• 49% of employees find paying their basic household expenses on time each month difficult.
  
  
• 61% of pre-retirees and 47% of retirees feel unprepared for retirement.
  
  
• 73% of employees under financial stress would consider changing jobs if their employer showed more concern for their economic well-being.

*PwC’s 2023 Employee Financial Wellness Survey

Financial stress affects essential aspects of health and well-being, including:

• Sleep
  
• Mental health
  
• Self-esteem
• Physical health
• Relationships at home

• Offer a company-sponsored retirement plan that includes contributions from the employer.
  
  
• Work with your retirement plan advisor to develop a participant engagement strategy and explore resources available through your current providers and the marketplace to meet your goals.
  
  
• Retirement and stock-plan recordkeepers often offer financial education resources. Some also provide financial coaching. Take advantage of resources from your insurance carrier(s), employee assistance program (EAP) provider, and other financial partners like banks or credit unions.
  
  
• Develop a salary-based benefits contribution strategy that connects health care costs to employee pay.
  
  
• Help employees manage debt and budgeting by offering automated emergency savings options and including emergency withdrawal features in retirement plans.
  
  
• Think about the cost of living in your area and adjust wages accordingly.
  
  
• Work with third-party vendors to provide support where gaps are found. 

• Decide whether to develop a comprehensive multi-tier approach that covers all aspects of financial health or focus on a specific area like budgeting, debt reduction, emergency savings, student loan repayment, or reducing loans from the 401(k) plan.

• Offer group or one-on-one education on financial well-being topics and retirement savings. 

• Provide access to Certified Financial Planners and financial coaches for personalized support.

• Combine different resources to create a tailored program or outsource it to third-party providers.

• Work with providers that offer services covering all aspects of financial well-being, such as retirement, or focus on specific areas like student loans. 

• Review and evaluate employee wages and benefit costs at least every other year, and ideally every year, if possible.

Additional considerations

• What is the program budget? Are you willing to allocate funds to support this benefit?

• Will the company fully sponsor the program, share costs with employees, or offer access with employees paying for services? 

• Who will oversee the program within your company to help ensure its success?
   

• Jim Hageney
• Nate Rasmussen
• Rob Kelley
• Bob Gibson
• Jennifer Conklin

Please contact Abby Jacowski or Anthony Carter with questions about the Financial Well-Being Playbook.