3 Ways Financial Wellness Can Help Every Generation in Your Workplace
Our guest blog series, where we feature industry leaders and partners and give readers the opportunity to read expert advice from across the wellbeing and employee benefits industries, is back this week with a post from our partners at Best Money Moves. Best Money Moves is an award-winning, cloud-based mobile-first financial wellness platform that has partnered with DHS Group to bring financial wellness to customers nationwide. Previously, they joined us to talk about the importance of financial wellness as part of an employee benefits program and this week, they’ll share about the top 3 stressors financial wellness can help alleviate for each generation in your workplace.
Financial wellness programs are a critical piece of every employee well-being program as most organizations now recognize the toll financial stress takes on employees at work.
According to a PwC study, more than 40 percent of financially stressed employees spend at least 3 hours dealing with personal finance issues at work each week and over 10 percent of them have missed days at work because they’re so overwhelmed by their finances.
While most employees are affected by financial stress, each one faces a unique situation, which is why it’s crucial to add a personalized financial wellness product like Best Money Moves.
Here are the top 3 stressors financial wellness can help alleviate for each generation in your workplace:
#1. Credit Card Debt
In a ValuePenguin survey, more than two-thirds of respondents admitted to overspending by at least $100 and nearly 60 percent of them don’t (or can’t) pay off their full credit card bill each month.
Baby Boomers: over 60 percent are unable to pay off their credit card debt.
Gen X: more than 30 percent have more than $2,000 in credit card debt.
Millennials: nearly 30 percent are unable to pay off their credit card debt
Gen Z: over 60 percent have already racked up credit card debt.
#2. Student Loan Debt
Research by AARP looked into how the $1.5 trillion in student loan debt affects each generation and found that it’s preventing people of all ages from reaching milestones like buying a home and saving for retirement.
Baby Boomers: over 30 percent haven’t saved for retirement, bought a house or bought a car because of student loan debt.
Gen X: nearly 40 percent haven’t saved for retirement and close to 30 percent put off buying a house or car because of student loan debt.
Millennials: roughly 40 percent haven’t saved for retirement or put off buying a house because of student loan debt.
Gen Z: over 50 percent believe student loan forgiveness will help them pay back student loans, but barely 3 percent will actually have their debts forgiven, according to research by LendEDU.
Close to 70 percent of employees are concerned about running out of money in retirement and don’t know what they’d do if it happened, according to a study by Wells Fargo.
Baby Boomers: spend twice as much supporting adult children than they do contributing to a retirement account, according to research by Merrill Lynch.
Gen X: less than 15 percent are confident they’ll be able to fully retire with a comfortable lifestyle, according to the same study by Wells Fargo mentioned earlier in this section.
Millennials: nearly 60 percent think winning the lottery is a reasonable retirement plan, likely because more than 75 percent live paycheck to paycheck, according to a survey by Stash.
Gen Z: positioned to invest in retirement planning early, take advantage of decades of compounding interest and avoid the stress older generations are feeling as they try to catch up with retirement savings while balancing other debts and family responsibilities.
The benefits world adapts as employee needs change and the thing employees need most today is financial wellness, the tools to help them better manage their money, pay off their debts, build their savings and plan for retirement. If you’re ready to help your employees reach financial wellness, give them Best Money Moves, a high-quality, thoughtful, mobile-first, personalized financial wellness product.
If you’re interested in learning more about financial wellness and its valuable place as part of your complete employee wellbeing solution, click here to get in touch.