In what the firm suggests adds to the body of literature that financial and physical health are intertwined, research unveiled by Prudential Financial found that respondents who take advantage of both benefit types are more likely than others to report lower levels of stress, as well as better physical and mental health.
The study, “The Interplay Between Health & Financial Wellness Benefits,” shows that just 13% of workers using financial wellness programs say they have high overall levels of stress, versus 17% of non-users.
What’s more, nearly 60% of workers who use health wellness programs consider their overall mental health “good,” as do those using financial wellness programs. Those numbers fall to 53% for those who don’t use health wellness programs and 55% for those who don’t use financial wellness programs.
The most common drivers of financial stress, according to respondents, are concerns about not saving enough for retirement or emergencies, and not paying off their debt quicker. They also indicate that not having access to financial wellness programs could be exacerbating their worries.
Among those with access to financial wellness benefits, 40% are worried about retirement savings, 34% about paying down debt and 32% about not having an emergency savings fund. Those figures jump to 46%, 44% and 42%, respectively, for workers without access to financial wellness benefits.
Financial Wellness Offerings
Prudential’s research also confirms that many employers are now supplementing their health wellness benefits with financial wellness programs that help employees with budgeting, managing debt, saving for retirement, investing and protecting against financial risks.
Not surprisingly, financial wellness programs are most common among larger employers. The study found that 48% of workers at large companies (25,000 or more employees) say their employer offers financial wellness benefits, versus 37% who work at small companies (fewer than 100 employees). As to geographic region, 46% of workers located in the West say their employers offer these programs, compared to 37% in the Northeast, 39% in the Midwest and 40% in the South.
The most common financial wellness offerings are:
- paid family leave, offered by 71% of employers;
- retirement planning tools (66%);
- disability income insurance (63%);
- long-term care insurance (56%); and
- accident insurance (53%).
Of those, retirement planning tools are the most commonly used (by 36% of workers), followed by paid family leave (27%).
Most workers with access to financial wellness benefits are satisfied with their employers’ offerings. Nearly 60% of respondents say they are somewhat or extremely satisfied, compared to 25% who are somewhat or extremely unsatisfied. Among all survey respondents, 81% say they are likely to use financial wellness benefits next year if offered by their employer.
Employees also apparently have an appetite for financial wellness programs they are not currently receiving, according to the study. Nearly a third of workers expressed a desire for financial education classes, online financial management tools, digital financial advice and planning, accrued wage advances, low interest loans and debt consolidation/payment programs.
“These findings mirror our experience providing financial and health wellness programs for our almost 50,000 employees,” notes Lucien Alziari, Prudential’s chief human resources officer. “We have seen firsthand how financially well employees become more effective employees, less burdened at home and at work by the stress financial struggles can cause.”
Prudential’s survey was conducted from May 10-12, 2019, among a national sample of 2,000 full-time employed adults with access to health wellness benefits through their employer.
