Financial wellness research and insights.
Financial wellness research and insights.
Financial wellness programs are becoming more and more prevalent as employers, large and small, rethink the importance of helping their employees achieve financial goals and become retirement ready.
According to Bank of America Merrill Lynch, most companies feel somewhat responsible for the financial wellness of their employees, and most companies believe that financial wellness programs will be standard in 10 years. Employers’ growing concerns over their employees’ financial situations make sense, especially since 20% of employees report that issues with personal finances have been a distraction at work. Financial stress causes employees to be less productive in the day-to-day and more dissatisfied with their employers in the long run. Financial wellness programs are not only good for employees; they can also help improve the bottom line for employers.
The Financial Wellness Trends one-pager summarizes key findings from four major studies released earlier this year. It provides essential information for quickly understanding the current state of financial wellness, from the perspective of the employer and employee.
Women are more stressed out about retirement than men are, according to a recent MassMutual study. MassMutual found that 20% of women are at least moderately stressed in retirement, compared to 15% of men. Prior to retirement, 49% of women are at least moderately stressed, compared to 38% of men.
Women tend to have higher expectations than men do about free time and the social aspects of retirement. During retirement, more women report having new experiences, having more time for friends, and opening up more opportunities. Furthermore, more women, 34%, report having friends and family to depend on, compared to 22% for men.
When it comes to money though, women are still worse off. While women tend to be more financially secure during retirement than they expect to be, they are still less financially secure than men are.
MassMutual’s findings are consistent with other findings. A recent survey from PricewaterhouseCoopers found that 42% of women are comfortable choosing investments that are right for them, compared to 60% of men.
Investing decisions have an impact. Among both men and women, those who have a DC plan are happier and feel more relaxed than those who do not, according to the MassMutual report.
When speaking to Bankrate, Laura Scharr-Bykowsky, principal of Ascend Financial Planning, noted a key difference between men and women. She says that because financial security is a high concern for women investors, they tend to make more conservative decisions.
“If you’re in a money market with all cash because you’re afraid of market volatility, inflation is quickly eating into that cash,” Scharr-Bykowsky says. “It seems like a smart strategy, but that actually could be the riskier strategy. You’re going to outlive your money if you’re sitting on all that cash.”
The gap in comfort levels between men and women in making investment decisions is something that can be addressed now to account for the differences in financial security during the retirement years. Financial advisors can do more bridging the confidence gap and the retirement gap. Tailoring communications and engagement to women’s concerns and properly educating women on the risks of different investment strategies are important first steps.
Recognizing a hunger for real-life data from employees on their financial challenges and goals, Retiremap has launched a Research Team to aggregate user data and look for interesting trends that will help retirement plan advisors, employers and retirement plan providers better understand employee financial wellness issues.
Access to this research will be included in the upcoming quarterly Industry Insights publication from Retiremap.
As a retirement plan advisor, you can get your own branded video and be the first to share financial wellness with your clients.
More and more top advisory firms are offering financial wellness programs as a way to develop relationships with prospects. Don’t let other firms be the first to present financial wellness to your clients.
If you missed the recent webinar “How Financial Wellness Reduces Fiduciary Risk” covering how a program such as Retiremap can mitigate fiduciary liability for plan sponsors, you can listen to the webinar or review the slides below.
These slides were developed with the assistance of The Wagner Law Group expressly for the benefit of Retiremap and are not appropriate to extrapolate to another financial wellness program.
Contact: Matt Iverson
Telephone: (415) 250-6727
San Ramon, CA, December 2, 2014 – Retiremap today announced that Steve Rydzak, AIF®, will join the firm as senior vice president of sales for Retiremap. Rydzak will focus on advisor and enterprise sales by working closely with leading advisory firms, broker-dealers, fund companies and service providers.
“Plan advisors are increasingly looking to differentiate their services with financial wellness, while connecting retirement plans to wealth management,” said Matt Iverson, CEO. “We are dedicated to the advisor-sold retirement plan market and are leveraging Steve’s considerable experience in working with advisors, broker-dealers and fund companies to grow Retiremap’s footprint as an advisor-driven financial wellness platform.”
Rydzak will report to Iverson who leads overall company vision, technology and product strategy. In his new role, Rydzak will collaborate with Retiremap’s leadership team to provide aggressive growth strategies and identify approaches designed to meet advisors’ evolving needs.
“We’re looking to Steve to replicate the success he had in his previous position, by personally cultivating and managing the sales process for key clients, while building out a great sales team,” said Iverson. “We’re very excited to have him on board and feel that Steve’s passion, knowledge and relationships within the retirement plan industry will pay dividends.”
Prior to joining Retiremap, Rydzak served as senior vice president of sales at fi360 since 2007, responsible for spearheading the national business development efforts by working with the top mutual fund companies, as well as custodians, broker-dealers, banks, insurance companies, and RIAs. Prior to that, he worked extensively in technology application outsourcing and offshore development focused in the financial services industry. Rydzak began his career in sales in 1990, holds an AIF® and graduated from Robert Morris University.
Retiremap is an advisor-driven financial wellness platform that uses behavioral economics to pro-actively engage employees and measurably improve outcomes. The award-winning platform uses iPad workshops, emails and microsites to improve employee engagement (1) and saving behavior (2), while making plan advisors dramatically more efficient and impactful. For advisors interested in wealth management and rollover opportunities, Retiremap generates qualified conversations, with 58% of iPad workshop attendees requesting to speak with an advisor (3).
(1) 97% of iPad workshop attendees feel the program is an excellent addition to their benefits package.
(2) 88% of employees decide to save more after completing the program.
(3) 15% of attendees have between $200,000-$500,000 in total savings, with 49% requesting to speak with an advisor. 6% of attendees have between $500,000-$1,000,000 in total savings, with 38% requesting to speak with an advisor.
Retiremap is a research-backed employee financial wellness program designed with renowned behavioral economist Dan Ariely and his team from Duke to help employees achieve their financial goals.
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