Addressing employee financial challenges with financial wellness programs

Employers can help improve the productivity and engagement of their workforce when they support the financial wellness of their employees.

Many Americans live paycheck to paycheck,1 with more than half having less than $10,000 in savings.2

When people are not financially well, they are more stressed and less productive.

As a group, women often face even greater financial challenges than their male counterparts. The causes are many, including:

  • Longevity risk. Women tend to live longer than men—five years on average3 —so they need to save more to generate retirement income for a longer period of time.
  • Work-life balance challenges. The responsibility for housekeeping and caregiving often fall to women, even for those who also work outside the home. As a result, women tend to accrue fewer years of paid work and lower career earnings.4
  • Increased debt. Women are carrying more debt in retirement, and at older ages, than they did in the past.5 If debt continues to grow with age, women will have to divert more of their retirement income toward it.
  • Singlehood in retirement. Women are more likely than men to be single, and they need to plan for their retirement accordingly. In 2017, among Americans 65 and older, 70% of men were married compared to just 46% of women. Thirty-three percent of women 65 and older were widows.6
  • Higher healthcare costs. Medical costs generally increase with age. Because women tend to marry men older than they and live longer, they’re at greater risk of depleting their retirement savings from paying their spouse’s health and long-term care expenses.7

Employer-sponsored financial wellness programs can help employees respond to these risks and challenges. Programs can be tailored to address the specific needs of employees and can combine education, guidance, tools, products, and services, including:

  • Budgeting and debt management tools
  • Emergency savings accounts
  • Calculators for identifying adequate 401(k) contribution rates
  • Information on claiming Social Security benefits
  • Options to buy life insurance, which can help replace income in the event of a working spouse’s premature death, or provide money to a surviving spouse in retirement
  • Access to annuity products that can help provide guaranteed lifetime income and a well-designed retirement savings account to achieve a financially secure retirement

The Women Presidents’ Organization (WPO) has partnered with Prudential (The Prudential Insurance Company of America) to launch a customized financial wellness program for members and their employees. To learn more, or if you’re interested in participating in a live demonstration of the Financial Wellness Center, please email wpo@prudential.com

Watch a short video highlighting Prudential’s financial wellness solutions.

1 American Payroll Association, Getting Paid in America Survey, 2016.
2 Prudential Financial Wellness Survey, April 2014.
3 Mortality in the United States, 2017, Centers for Disease Control and Prevention,
https://www.cdc.gov/nchs/products/databriefs/db328.htm, retrieved January 15, 2020.
4 Society of Actuaries, “Women and Post-Retirement Risks,” 2018.
5 Prudential, “Closing the Retirement Income Gender Gap: The Opportunity is Now,” 2017.
6 Administration for Community Living, U.S. Department of Health and Human Services, “2017 Profile of Older Americans,” p. 3, 2017.
7 Society of Actuaries, “Women and Post-Retirement Risks,” 2018.

 

 

Financial Wellness offerings, including access to any third-party referrals, are provided by Prudential Workplace Solutions Group Services, LLC (“PWSGS”). PWSGS is an affiliate of Prudential Financial, Inc. PWSGS is not a licensed insurance company, does not provide insurance products or services, and does not provide financial, investment or tax advice. The Financial Wellness offerings are made available solely for general financial education purposes.  Individuals should consult appropriate professionals when making financial, investment and tax decisions.

Financial Wellness offerings, including any products, services or other solutions, described in this document are voluntary, individually-selected offerings. They are not part of any employee benefit plan, or any program sponsored or endorsed by an employer. 

©2020 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

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