Insurance agents and brokers are in the business of selling coverage both to private citizens and to companies. Employers then distribute them to workers in the form of employee benefits. In a recent survey of many of these insurance professionals, a fairly high percentage say they've noticed more companies taking a second look at their benefits packages and finding that they may not be adequately satisfying their staff members' needs, particularly as they relate to their workers' handling of finances.
Approximately 6 in 10 survey respondents in the poll indicated that they've seen an increased amount of concern among their employer clients regarding how well off their employees are with respect to their financial well-being, according to new polling data from employer-based financial assistance program firm FinFit. Additionally, more than two-thirds of these same survey participants said that they believe their workers would have interest in taking part in programs that makes it easier for them to cover the cost of deductibles when coverage only goes so far.
David Kilby, FinFit president, indicated that one of the great aspects of financial wellness programs is that they teach workers how to respond to financially trying circumstances so that they can address whatever situation they're dealing with, implementing the steps and procedures needed to get back on track.
"Unexpected emergencies can create a great deal of stress for individuals and families, especially those who don't have a savings account or access to cash," said Kilby. "This type of program helps employees address financial hardships immediately, and this enables better focus on the job and increased productivity."
Financial wellness programs appear to be getting more of a following among employers and businesses by and large. Among the insurance agents and brokers polled, nearly half said that they've witnessed a greater number of their employer clients offering a wider range of benefits, all of which are aimed at improving their workers' economic well-being as well as their financial understanding or literacy.
Workers' retirement readiness lacking, employers say
In a similar vein, employers are also concerned about how their workers are preparing for retirement, as a separate poll finds that business owners have doubts their staff members are preparing in the way that they ought to be.
More than 75 percent of employers that sponsor 401(k) and defined contributions plans said that retirement readiness is not something that their workers have addressed adequately, according to survey data from professional services company Towers Watson.
Of the nearly 460 employers polled, 78 percent said that retirement preparation was what they believed to be their workers' top issue. And over the next three years, more than 80 percent said that this issue would become even more of a problem if it's ignored or brushed aside.
Robyn Credico, defined contribution leader at Towers Watson, noted that the fault of workers' being insufficiently prepared for retirement may fall at the feet of employers.
"Unfortunately, most employers have not yet moved the needle in preparing their workers for a financially secure retirement," said Credico. "Getting employees to understand their savings needs and feel comfortable about retirement remains a significant challenge."
He added that if employers are to make progress – and, in so doing, employees – they need to rely on educational initiatives so that their workers know what their options are and how they can make more informed decisions.
Jill Kleiner, senior consultant at Towers Watson, said that it's encouraging so many employers are taking interest in their workers' readiness for retirement, evidenced by their commitment to providing more education to their staff.
