Financial Planners

In a breakout session presentation at the BenefitsPRO Broker Expo, the Head of Broker Partnerships, a financial wellness platform for employees, will discuss brokers’ best strategies for delivering this essential benefit to employers.

“Financial wellness is clearly a hot topic,” said Chad Schneider, Origin’s Head of Broker Partnerships, during the “How to Maximize Your Earnings with Financial Wellness” session at Broker Expo in Atlanta. said Mr. “For employers, it went from being a nice-to-have to being a must-have.”

“It’s a global economy right now and everything is so unstable that people are stressed. And now it’s like, ‘How do I get something in order?'” he said. Told. Rather than checking the box solves it. ”

Mr Schneider said the “financial literacy deficit in our country” is widespread. “Many people are stressed because they are unprepared for big events. Employers are therefore being urged to fill the gaps in their workforce by providing financial support, Schneider said.

“Many people are in financial trouble. Here’s why,” he said.

  • 53% of adults are financially insecure
  • 2 in 3 households lack emergency funds
  • 40% of Americans couldn’t cover a $400 emergency
  • 3 out of 5 adults don’t stick to their budget
  • 54% of millennials are concerned about student loans

What is Total Financial Wellness?

Schneider said economic health is nothing new, but it’s time to “shed some light on it.” “It’s an opportunity for all of you brokers,” he said. There are so many employers wanting a conversation like this…Today, employers are offering a holistic financial wellness program that covers mental, physical and financial that can help all employees.・I’m looking for a program. ”

He said a holistic financial soundness approach should include the following aspects:

  • Money management to meet daily expenses
  • Spend within your means for long-term success
  • Prepare for the unexpected (emergency expenses, sudden loss of income, or loss of loved ones)
  • Increased sense of security and understanding of cash flow (for individuals or couples)
  • Empowerment and education to make informed financial decisions
  • Manage Debt and Create a Debt-Free Plan

“This new, holistic approach gives employees access to tools, resources and financial experts to help them get the full financial component of every aspect of budgeting and this is what we are seeing. It’s an evolutionary process,” Schneider said. In other words, your program should be:

  • Personalized: Everyone has their own unique background and experience with money that has led them to their current economic state. A one-size-fits-all approach will alienate part of your workforce, so solutions must be personalized.
  • Cost effective: Employer-sponsored plans must be comprehensive and cost-effective for the entire workforce.
  • convenience: Remove barriers to financial success by providing easy and convenient access to education and information and removing barriers to conducting financial operations.

According to Schneider, financial wellness is currently the most requested employee benefit. Schneider’s company is conducting a survey on the subject among companies it has worked with over the past three years. “What employees want most is resources to talk to advisors, understand finances and resources, and navigate the crazy economy we are living in right now,” he said.

He said that financial advisors are out of reach for employees, so most employees (93%) said they would like their company to increase access to financial planning (but are not doing so). only 28%).

“We hear the term corporate responsibility more and more,” says Schneider. “Financial health starts at work. For most employees, you are the only source of wealth. Financial health is a top priority for employers,” Schneider said. Here’s how the financial health of the workplace has changed over the years.

  • Essential Benefits: Nearly all (94%) employers say they are very or moderately likely to provide employees with resources to improve their financial well-being in areas other than retirement decisions. doing.
  • Use of the program: A comprehensive financial wellness solution should see an average of five times more engagement than a traditional financial wellness solution.
  • Redefining financial health: 59% of employers are now looking to provide employees with specific tools to help with subjects such as budgeting, debt management and financial planning. This is up from 35% in 2018.
  • Focus on technology: 58% of employers are looking for technology-focused financial wellness solutions for their employees, such as mobile apps and online tools.

According to Schneider, financial health also drives employer earnings in the following ways:

  • Increased sales of voluntary benefits (Life insurance, disability insurance, etc.): Recommendations to purchase additional products already offered through your employer based on life events.
  • increase 401(k): The employee increased his 401(k) contribution by $2,000 in his first year.
  • Increase participation in HDHP and HSA: Financial planners educate employees about HSA tax benefits that drive enrollment growth.
  • Improve reward utilization: Financial planners are trained in employee benefits and help employees better understand the value of benefits.

“More and more companies are considering the various financial issues their employees are suffering from and adjusting their benefits accordingly,” Schneider said. “Especially now, HR teams are gearing up to support employee well-being during this once-in-a-generation economic upheaval. Advancements in technology and data are changing the picture of financial health. How investing in financial health improves the health and productivity of your employees and the bottom line of your business.”

The types of financial wellness programs that currently exist are:

  • financial literacy program
  • financial wellness platform
  • Budgeting and cash flow management
  • Tax guidance and preparation

Here are the positive behavioral changes employers can ask their employees to make in the next 12 months once a financial wellness program is in place.

  • 27% increase in users building emergency savings funds for 3-6 months.
  • 15% increase in users contributing to retirement plans.
  • 10% increase in users who contributed enough to earn a perfect retirement match for their employer.
  • 28% increase in users paying full monthly credit card
  • 32% more users on track to meet their financial goals.

“Demographics are changing modern benefits,” says Schneider. One of his key statistics is that his 76% of millennials lack basic financial knowledge, plus:

  • By 2030, 30% of the workforce will be Gen Z, the most ethnically and racially diverse generation in history
  • 69% of Gen Z and Millennial employees are female
  • 78% of employees say it’s important to them for their employer to prioritize diversity and inclusion

“To best serve our diverse workforce, financial wellness solutions need to be more diverse than the typical financial professional population across race, gender, language and background,” said Schneider. We need to hire professionals,” he said.

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