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A Tipping Point for Financial Wellness

A new report suggests that we may be on the verge of a tipping point in financial wellness focus, but the prism of that focus seems nearly as varied as the plan sponsors contemplating the shift.

According to AonHewitt’s “2016 Hot Topics in Retirement and Financial Well-Being,” the vast majority (89%) of 254 plan sponsor respondents indicate they are very (56%) or moderately (33%) likely to create or focus on financial well-being of employees that expands beyond retirement decisions.

Not only is that 56% up from 46% a year ago, it was just 30% as recently as 2014. Additionally, the report notes that over half (55%) of those employers already offer workers help in at least one category of financial well-being, and nearly 4 out of 10 (38%) have at least three categories covered. Moreover, by the end of the year, the report notes that those percentages are expected to grow to 77% and 52%, respectively.

In 2015, nearly half (49%) of surveyed employers said that financial wellness had more importance in their organization over the past 24 months, roughly equal to the 50% who said it had the same importance. In 2016, those numbers had moved to 58% citing “more importance” and 40% saying “same importance.”

While the report cites “wide accord” on the desire to expand those initiatives, unity of focus remains elusive. The survey asked plan sponsors about their program offerings on seven different fronts, and while nearly each category saw increased implementation from a year ago, no one area was offered by a majority of responding employers. Those areas of focus were:


  • basics of financial markets (43%, up from 41% a year ago);

  • budgeting (34%, up from 26%);

  • debt management (33%, up from 25%);

  • financial planning (33%, up from 29%);

  • health care planning (31%, down from 32%);

  • saving for life stages (28%, up from 22%); and

  • prioritizing savings (27%; was not asked in 2015).


Motivations for offering these programs were different as well. The most common reason cited was “it’s the right thing to do,” acknowledged by 85%, while “increasing employee engagement” drew nearly as much support (80%). Improving retirement statistics was a motivating factor for 58% of respondents, while “decrease employee time spent addressing financial issues” was noted by 44%. Only about a quarter (26%) said their motivation was to decrease medical costs, and just a third indicated that workers were asking for these programs.

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