As the coronavirus pandemic continues to evolve and impact all aspects of our lives, it is an ominous reminder of the precarious nature of many Americans’ personal finances. According to a 2017 report by employment website CareerBuilder, 78 percent of American workers say they’re living paycheck to paycheck. As the economy reels from the coronavirus shock, the personal implications of mandatory quarantines and reduced consumer spending are being felt by many through reduced income or loss of a job.
Fortunately, in recent years there has been a growing awareness of the consequences of financial hardship. Acutely aware of how employees’ personal finances impact their performance on the job, a growing number of employers have begun offering their employees assistance through financial wellness programs. Currently more than half of employers offer such a program to their employees, whereas only 24% did in 2005.
But what is financial wellness, exactly? Financial wellness is the ability to effectively manage your financial life; to be able to confidently balance short-term financial needs while simultaneously planning for your financial future. The end goal of a financial wellness program is to leave you in a position of financial strength and stability. To do so, these programs focus on the foundations of financial planning: emergency savings, budgeting, debt elimination, insurance, estate planning, and investing –ultimately allowing you to focus on other aspects of your life and to worry less about money.
The real power of financial wellness programs is that the benefits are mutually shared between employees and employers. Employees develop the skills and knowledge to confidently navigate their financial lives. Employers see increases in productivity, better employee retention, and improved morale. At JNBA, we partner with our clients to maximize their compensation packages and employee benefits and also work with employers to help create or enhance a financial wellness program for their employees.
Certainly, the financial and emotional toll from the coronavirus pandemic is unmistakable. Many among us will, if not already, face serious financial hardship. Yet through it all, we are reminded of how interconnected and reliant we are to one another. While it’s too early to fully understand the long-term impact of financial wellness programs, their immediate mutual benefits should not be overlooked in a time of clear financial stress.
If you have questions or would like to explore how JNBA can help both employees and employers maximize benefit offerings and support financial wellness, please contact us today.
JNBA is not an accountant nor an attorney and no portion of the above should be construed as accounting or legal advice. All accounting and legal issues should be addressed with an accounting or legal professional of your choosing.
Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, Inc.
Please see important disclosure information at www.jnba.com/disclosure