American adults face a complex problem: pay off debt or save for retirement. People have many reasons why they don’t put money away for their golden years. Two common explanations are a lack of awareness of their retirement needs and their obligations to paying off personal debts, especially student loans. Increasingly, employers are stepping up efforts to help employees by offering financial well-being programs, including the Employee Choice benefit.
Employee financial well-being is a concern that is top of mind for many employers. Only two-thirds of American adults are saving for retirement, but often they’re not saving enough. A recent survey found that 56 percent of Americans had only $10,000 saved for retirement. And 33 percent have saved nothing. And employees who are paying off student loans can lose years of retirement savings opportunities. For Millennials, that could be at least 10 years of savings.
Enhance financial well-being
There are many ways employers can help employees improve their financial well-being and save for retirement. Start by understanding employees’ financial struggles. Then develop a strategy to offer services, programs, and benefits that meet those needs. It can make a powerful difference in employees’ lives.
Employer-sponsored retirement savings
Most employees save for retirement through employer-sponsored programs. If employees don’t sign up for retirement plan options at work, few will save on their own for their senior years.
One new idea that is quickly gaining attention is the Employee Choice program. Offered by BenefitEd, Employee Choice helps employees make full use of their employers’ matching programs by applying unused dollars to help pay down student loan debt.
Download this whitepaper to find out more about employee financial well-being needs and the Employee Choice program.
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Vice President–Group Field Sales
Director of Sales and Operations