Data & Research April 26, 2016

Employers Increasing Financial Wellness Programs

However, they are looking to keep group benefits costs down.
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Companies are responding to employees’ financial concerns by expanding their financial wellness programs, according to a Prudential Group Insurance employee benefits survey.

Employees say they are better off financially than they were five years ago—but they are worried about making ends meet, whether their jobs are secure, whether they have the appropriate health insurance, and whether they will be able to save for adequately retirement and make those savings last.

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In response, employers are trying to expand their financial wellness programs and educate their workers about how their benefits programs can help secure their financial well-being, says Andy Sullivan, president of Prudential Group Insurance. “That’s a tall order,” he says, “as employers seek to control benefits costs, while providing competitive benefits packages that will attract and retain the best talent.”

In line with controlling costs, many employers are widening their voluntary benefits and increasing employee-paid benefits. In fact, 61% of employers have adopted consumer-directed, high deductible health plans paired with health savings accounts or other personal savings vehicles. Some employers that have expanded their financial wellness programs are shifting a portion of the cost of those programs onto employees, Prudential found.

The insurer also found that employers may not realize how important long-term financial wellness is to younger generations; when asked to rate the importance of various financial matters, employer perceptions did not align with the opinions of Millennial and Gen X employees.

Prudential’s findings on employers’ increasing interest in financial wellness programs mirror results from the 7th annual survey about corporate health and well-being from Fidelity Investments and the National Business Group on Health. That survey found that 76% of employers are now providing financial health programs.

Data & Research April 26, 2016

Two-Thirds of Americans Believe ‘The American Dream’ Is Attainable

But their definition of what it means has dramatically changed to focus on family and security.
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Sixty-six percent of Americans believe they can achieve “The American Dream,” according to the 2016 Northwestern Mutual Planning & Progress Study. Only 16% think it is out of reach.

However, nearly one-third (31%) say that their definition of what The American Dream means has changed in the past five years, and 57% think it will be different from how their parents viewed it. Americans first define living The American Dream as having a happy family life (59%), closely followed by being financially secure (58%).

These goals far outweigh traditional notions of success, such as having more opportunities than their parents’ generation (18%), making a lot of money and attaining wealth (11%) and moving up in social class (3%).

“The goal today seems to be more about outcomes—happiness, security and peace of mind rather than material wealth or the opportunity to advance,” says Rebekah Barsch, vice president of planning and sales at Northwestern Mutual. “The white picket fence is still important, but today, Americans seem to care more about what’s going on inside the house.”

The study also showed a dichotomy between faith in The American Dream and Americans’ sense of financial security. Twenty-nine percent do not feel financially secure. Only 21% think of themselves as “highly disciplined” when it comes to planning their finances, but 33% consider themselves “disciplined.” Twelve percent “have not set any financial goals.”

These findings are in line with the 2015 Northwestern Mutual Planning & Progress Study, which found that 21% are “not at all confident” they will be able to reach their financial goals.

Barsch adds: “Financial security has emerged as the very pillar of The American Dream today, and a distinct catalyst toward leading a happy life. But there’s a disconnect between how the relatively small steps of solid planning and strong discipline can lead to big strides toward achieving that American Dream. Optimism is great, but it needs to be backed up with consistent action.”

Harris Poll conducted this year’s online survey among 2,646 American adults for Northwestern Mutual between February 1 and February 10.

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