Financial Health

Minimize Worry and Maximize Employee Financial Health

Sponsored by: Nationwide

With 2022 shaping up to be much more economically challenging for many people, more so than in 2021, folks are doing what they can to get by. A recent study performed by Nationwide said that a whopping 90% of consumers are concerned about inflation and their financial health. Do you blame them? 

Some employees are even starting to reduce their 401(k) plan contributions. The economic downturn has employees feeling worried and insecure – rightfully so.

Another study I just read shows that 70% of employees believe they need help from employers to achieve long-term financial security. Employers and employees may not realize all the tools available to help promote financial wellness and help to alleviate worry and insecurity.

Let’s look at some ways organizations and individuals can ease their worries about retirement plans and lifelong financial health.

Are you ready to help your employees thrive?

Our Guest: Amelia Dunlap

On our latest #WorkTrends Podcast, I spoke to Amelia Dunlap, Vice President of Retirement Solutions Marketing at Nationwide. Her focus is on solving the complex challenges of the financial services industry. She leads retirement solutions and marketing and is responsible for connecting with participants to plan for and live in retirement. She says:

Many people may not realize the full scope of what Nationwide does and that they offer much more than just home and auto insurance.

The Big Picture

We need to focus beyond the here and now. While many people know they have to save as much as possible for retirement, they are often unsure of what retirement will look like when it comes. About one in five people are delaying their retirement date because they feel insecure about how much income they will need to live on comfortably.

Amelia shares some solutions from Nationwide, such as in-plan guarantees, a way to put money into an investment that guarantees retirement income. A recent macrotrend related to pensions should be of some concern:

Rewind decades ago, a lot of companies had pensions for those of us in the corporate or private sector. That provided you, as an employee, with a paycheck in retirement. Well, throughout the past number of years, pensions have started to reduce. That ownership of preparing for your retirement and living in retirement has transitioned from a company providing it to an individual’s responsibility. That’s what a 401(k) is.

The Future of Retirement

 Economic security is of great concern for everybody, whether nearing retirement or just entering the workforce. There may be legislation from Capitol Hill that could help here, but in the nearer term, there are options and ways to educate younger generations. 

We in the industry often say, “If only everyone knew that your retirement plan is the best option for saving that you’re going to have.” It gives you the most access to investments. It’s the lowest cost. If you have a retirement plan, you should absolutely be taking advantage of it. We in the industry know that. Unfortunately, I don’t know if that is always effectively communicated to employers and ultimately to employees.

Educating younger workers on the benefits of investing earlier in their careers can make a huge difference. 

Lessons Learned

The turbulence in the last year has been a wake-up call for many people who had previously been in a stretch where things had been just ticking along well for a number of years. So what have we learned? 

This really underscores the need for employees to understand that adversity is going to happen and that you need to be thinking about your financial wellness plans long term. Putting your money in your retirement plan, continuing to save, and diversifying your investments are all good keywords you hear. Right now is a really unique time for employers because they’ve got the attention of their employees.

I hope you found this episode of #WorkTrends helpful and inspirational. To learn more about employer-sponsored retirement programs and the changes needed to help secure employee financial wellness, visit Nationwide.

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