Financial wellness and mental health are two entwined variables that affect overall health. Stress can be a hazard to health and can lead to poor financial wellness and mental health. Sound financial decisions become more challenging when bills pile up and impulse control diminishes. Simultaneously, as financial stress increases, the physical tolls of stress damage mental health.
Employee financial wellness programs are a great way to remove some stressors and promote overall wellbeing.
Over the past few years, financial wellness has increased in popularity. To help relieve stress and reduce burdens, employers have begun offering programs on credit and debt management, household budgeting, retirement planning, investments, savings, taxes, insurance, and more.
Some programs come bundled in with Employee Assistance Programs (EAPs) while others are online tools, and some offer financial counselors.
Importance of the programs
According to a Bank of America report, less than half of surveyed employees rank their financial wellness as “good,” and only 31% of employees still prioritize their retirement. Many employees are being forced to pay off debts and pay for unexpected bills and navigate caregiving expenses, which forces retirement planning to be a lower priority.
Currently, about 2 in every 5 employers offer a financial wellness program, which provides an opportunity to stand apart from competition and attract and retain top talent. Additionally, with better financially security, it is common see reduced absenteeism and improved productivity from employees.
If you have any questions about financial wellness programs, please contact your dedicated Creative Benefits, Inc. team member.