Retiremap Launches Financial Wellness Insights

Employers and financial advisors are increasingly eager to learn about and provide more robust assistance with employees’ financial wellness goals. In response, Retiremap has launched Financial Wellness Insights, a research series that will focus on a different theme in the financial wellness landscape every month. This month’s research on Millennials can be found here:

Financial Wellness Insights_Millennials_9.2015

Offering a unique blend of in-depth analysis of employee data and highlights of research from throughout the industry, each issue of Financial Wellness Insights will provide timely and actionable information to help employers and advisors better understand employees and how they can strengthen their financial wellness offerings. Case studies and industry best practices will also be included in the research.

“We are excited to be offering our new Insights series to share the broad financial wellness trends we are seeing through Retiremap implementations with advisors,” said Matt Iverson, CEO at Retiremap. “The Insights series is designed to help advisors demonstrate thought leadership by sharing the latest financial wellness research with clients and prospects.”

As with Retiremap’s other communication and research pieces, Retiremap is happy to offer Financial Wellness Insights with white-labeling for advisors to present and distribute.

In the inaugural issue, “How Millennials Rank on Debt, Savings and Investing,” Retiremap finds that Millennials stack up surprisingly well against Baby Boomers and Gen X-ers across a number of key financial wellness indicators, including debt and savings rates. Millennials have far less liquid savings than Baby Boomers and Gen-Xers but are steadily catching up with an overall monthly savings rate of $425. Even though a higher percentage of Millennials carry debt across all categories measured, Millennials have less debt, in dollar amount, than Gen X-ers do.

“The research reveals that Millennials are aware of their responsibilities, which is a crucial first step in the path to financial security.” said Julia Chen, Researcher at Retiremap. “It’s also a strong signal for advisors that Millennials want to be engaged and educated around financial issues.”

“With all the concern about Millennials, it’s refreshing to see the data showing how they are paying attention to savings and addressing debt,” said Iverson. “We’ve found that the key to engaging Millennials is focusing on their financial goals, while providing a visual planning process.”

Employees Want More Retirement Guidance

American workers are expecting more help from their employers in regards to retirement planning, according to a new study from American Century Investments. The survey, which included responses from over 2,000 defined contribution plan participants, found that retirement is top of mind for employees but they still need more help.

80% of participants believe that they would have saved more if their employer had given them more of a “nudge.” Participants were especially interested in investing help.

Employees are also open to more aggressive saving targets; 70% support automatic enrollment at 6% and nearly 80% support automatic contribution increases. 90% of participants had at least some regret about retirement savings.

Not saving enough for retirement was mentioned more frequently than not doing better in careers or personal relationships.

Other studies support Americans’ desires for more financial guidance and growing trust in financial professionals. The Allianz LoveFamilyMoney study found that 92% of respondents who have used financial professionals said they believe that the relationship is helping them achieve their financial goals, and 74% believe that the extra guidance is worth the cost.

Even respondents who have never used a financial professional believe that professionals are helpful in achieving financial goals.

The differences in behaviors and feelings of financial well-being between those who use financial professionals and those who do not are clear: 12% of those who have never worked with a financial professional are unsure of how to fund their retirement, compared to 3% of those who have worked with a financial professional.

60% of respondents who work with an advisor feel very secure about their retirement, as compared to 32% who do not, according to Deloitte.

Working with a financial professional also encouraged more savings, investing, and long-term goal-setting.

Deloitte also found that 78% of consumers surveyed in 2014 trusted their own financial professional, compared to 68% in 2012, indicating an ongoing upward trend. The positive sentiment towards financial professionals and openness towards receiving help should be good news to plan sponsors.

However, employers still have a lot of room to expand their engagement and guidance. Only 14% of respondents believed that their employers had done everything possible to help with retirement planning, and employers underestimate the amount of employees that want at least a “slight nudge,” according to American Century Investments.

Retiremap Launches Research Team

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.

Advisors: A branded video to introduce financial wellness

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.

How Financial Wellness Reduces Fiduciary Risk

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.


Financial Wellness Is Coming to Mountain View!

Want to improve employees’ financial wellness?

Come learn how to design an impactful financial wellness program at an interactive workshop in Mountain View, California.  You’ll get to learn first-hand how today’s technology, including iPads, can better engage employees and help them get on track to reach their financial goals.

The workshop content was developed with leading behavioral economist and NY Times bestselling author, Dan Ariely, and is based on his research on how people make decisions in the real world.

In the spirit of learning while doing, every workshop attendee will get to use an iPad to simulate the financial wellness workshop experience.

Space and iPads are limited, so please register today.

Eventbrite - Designing an Impactful Financial Wellness Program