Employee, heal thyself! The financial wellness trend will only get hotter
Financial wellness doesn’t mean adding spa appointments to a company’s benefits plan or installing a hot tub in the breakroom.
No matter. It’s still the hottest trend in the retirement industry.
Financial wellness is often talked about separately from financial planning or workplace benefits, but it actually serves as a bridge connecting every area of an employee’s financial life. Experts say true financial wellness is not simply an ability to pay the bills, but also includes having an emergency fund, managing debt, saving for retirement, paying for education, dealing with estate planning, and more.
“The term wellness borrows from holistic self-care because at its core, it’s the same concept — a holistic approach to your financial life,” said Craig Rubino, head of participant insights, financial wellness, and learning at Morgan Stanley at Work.
As for why it’s been soaring in popularity lately, Rubino says employees have been financially stressed since the start of the pandemic, which affects both their personal lives and their work lives. Meanwhile, employers have found that providing access to individual financial coaching and vehicles to help pay back debt and student loans, in addition to education, can help alleviate the burden.
It’s also proven to be helpful in retaining workers amid the current tight labor market.
“We know employees are more likely to stay at a job that includes financial benefits, and seek them out in potential employers. However, it’s not always enough simply to have access to financial benefits, with many employees needing education and support in how to make the most of their benefits and tailor their choices to their needs,” Rubino said.
He cited a recent Morgan Stanley at Work study that
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