E m p l o y e e F i n a n c i a l W e l l n e s s

Transcription

1 2015 Survey E m p l o y e e F i n a n c i a l W e l l n e s s S u r v e y R e s u l t s O v e r a l l 2 K n o w l e d g e & P r i o r i t i e s W o r k p l a c e 3-4 W e l l n e s s E m p l o y e e 5 A s s i s t a n c e P r o f e s s i o n a l 6 E d u c a t i o n S u m m a r y 7 Three CityPlace Drive Suite 590 St. Louis, MO A B e n e f i t s S u r v e y o f o v e r F u l l - T i m e E m p l o y e e s A c r o s s t h e U n i t e d S t a t e s The results of the 2015 F S F E E m p l o y e e Financial Wellness Survey show that employees are most concerned regarding retirement planning, debt/budgeting, and investment planning. Among the sources of financial education in t h e w o r k p l a c e, employer retirement plans continue to be a l e a d i n g r e s o u r c e. However, the survey results show nearly one in five employees receive no education whatsoever from plan advisors. Employees were asked to rate their overall satisfaction with their employer s benefits p a c k a g e. T h o s e employees with no w e l l n e s s p r o g r a m averaged a rating of 6.03 on a 10 point scale (10 highest). Those employees with wellness programs that excluded financial wellness averaged 28.6% higher at %. T h o s e employees that had wellness programs a v a i l a b l e w h i c h i n cl u ded fi n an ci al wellness averaged 34.5% higher than those without any w e l l n e s s p r o g r a m available at The results also show a demand for financial wellness as part of an employer s overall wellness program with 74% of employees. This represents an increase from 71% in Yet, over 65% of employees do not have a financial w e l l n e s s p r o g r a m available to them. When asked how likely an employee would be to share in some cost for a financial wellness p r o g r a m, 2 5 % responded possibly while 59% responded likely. An additional source of financial education in the workplace is Employee Assistance P r o g r a m s ( E A P s ). N e a r l y 4 4 % o f employees stated they have an EAP available at work, while 22% stated they were not sure if they had an EAP. A m o n g t h o s e employees with an EAP, 67% stated their EAP i n cl u ded fi n an ci al planning help with % o f t h o s e employees citing they h a v e u s e d t h e fi n an ci al pl anni n g benefit. The survey consisted of 572 employees from across the United States within various age tiers. Among those surveyed, 6.5% were age 18-24, 30.4% were age 25-34, 25.9% were 35-44, and 37.2% were age 45 and over. All employees were full time and excluded s e l f - e m p l o y e d individuals.

2 O v e r a l l K n o w l e d g e & P r i o r i t i e s F r o m 1 t o 1 0, h o w w o u l d y o u r a n k y o u r o v e r a l l k n o w l e d g e o f t h e f i n a n c i a l t o p i c s l i s t e d b e l o w? Survey participants were asked to rank their overall knowledge in the following topics as a whole: Retirement Investments College Planning Tax Planning Insurance Basic Financial Planning (budgeting, saving, debt) Ages were more likely to rank themselves higher than other age ranges on the knowledge scale. Ages averaged 5.8, ages averaged 7, ages averaged 7.1, and ages 45 and up averaged 6.3. Overall, more than one in five of those surveyed rank their overall financial knowledge as 8. W h a t i s t h e M O S T i m p o r t a n t f i n a n c i a l a r e a f o r y o u c u r r e n t l y? Survey respondents were asked to rank both their MOST important (above) a n d S E C O N D M O S T important (below) financial areas. Retirement was by far the leading area for most employees while investments, budgeting and ranked second and third overall. W h a t i s t h e S E C O N D M O S T i m p o r t a n t f i n a n c i a l a r e a f o r y o u c u r r e n t l y?

3 The youngest age group of cited investments as their area of most concern, followed closely by debt and budgeting. The next age group of cited investments as their are of most concern, followed by retirement. The age group of strongly cited retirement as their area of most concern, followed by investments. The final age group of 45 and over by far cited W o r k p l a c e W e l l n e s s retirement as their primary area of concern with 56% of employees citing the same concern. This area of concern was followed by debt and budgeting by 14% of employees in this age group. Survey participants were a s k e d a b o u t t h e i r e m p l o y e r s w e l l n e s s program, their thoughts on financial wellness, and how they receive their current w o r k p l a c e education. f i n a n c i a l D o e s y o u r e m p l o y e r h a v e a w e l l n e s s p r o g r a m? The 2014 survey showed that 47% of employers had wellness programs in place for employees. The 2015 survey illustrates that 56% of employers have wellness programs in place. This represents an increase of approximately 18% over I s f i n a n c i a l w e l l n e s s p a r t o f t h e w e l l n e s s p r o g r a m? The 2014 survey showed 72% of employers did not include financial wellness as part of their wellness program. However, the 2015 survey illustrated significant change with only 39% of employers lacking f i n a n c i a l w e l l n e s s p r o g r a m s. E m p l o y e e demand also grew from 2014 to 2015 with 74% citing they feel financial wellness should be part of an overall well ness program compared to 71% in D o y o u f e e l f i n a n c i a l w e l l n e s s s h o u l d b e p a r t o f a n o v e r a l l w e l l n e s s p r o g r a m?

4 W o r k p l a c e W e l l n e s s C o n t i n u e d I f y o u c o u l d r e c e i v e p e r s o n a l i z e d, c o n f i d e n t i a l a d v i c e f r o m a n i n d e p e n d e n t b o a r d C E R T I F I E D F I N A N C I A L P L A N N E R TM a n d y o u r e m p l o y e r p a i d f o r i t, w o u l d y o u u t i l i z e i t? Approximately 83% of employees cited they would utilize the ability to meet with a CFP if their employer covered the costs. If these services were made part of an e m p l o y e r s f i n a n c i a l wellness benefit, this factor m a y h e l p b e n e f i t s departments with utilization a s s u m p t i o n s. M a n y financial wellness providers exclusively utilize CFP professionals to assist employees as compared to other general financial professionals. H o w l i k e l y a r e y o u t o s h a r e s o m e c o s t i n a w o r k p l a c e f i n a n c i a l w e l l n e s s b e n e f i t i f i t c o u l d h e l p y o u t o w a r d y o u r f i n a n c i a l g o a l s? New to the 2015 survey, employees were asked about their willingness to share in some cost of financial wellness benefits. According to the survey, 59% of employees cited likely while nearly 26% cited possibly. Only 15% of employees answered unlikely to the concept of shared costs. F r o m 1 t o 1 0, h o w s a t i s f i e d a r e y o u w i t h y o u r e m p l o y e r s o v e r a l l b e n e f i t s p a c k a g e? Also new to the 2015 survey, employees were a s k e d a b o u t t h e i r satisfaction with their e m p l o y e r s b e n e f i t s package. Most employees rated their satisfaction at 8 or 7. Employees ages averaged the lowest rating at 5.7 with ages and a v e r a g i n g Employees ages 45 and up averaged 6.7. Employees with wellness programs which included a financial component rated their benefits satisfaction 34.5% higher than those employees with no wellness program.

5 E m p l o y e e A s s i s t a n c e P r o g r a m s Survey respondents were asked about their employer benefits through Employee Assistance Programs (EAP), if applicable. Furthermore, they were asked about the financial component of these EAPs. Many EAPs offer some element of f i n a n c i a l a s s i s t a n c e, although the level of sophistication, service and advice varies greatly. D o e s y o u r e m p l o y e r o f f e r y o u a n E m p l o y e e A s s i s t a n c e P r o g r a m ( E A P )? More employees cited having an EAP in 2015 compared to 32% The number of employees unsure about the existence of an EAP declined from 25% in This may represent EAP growth or greater communication about existing employees benefits programs from employers. D o e s y o u r E A P i n c l u d e f i n a n c i a l p l a n n i n g h e l p? Among those employees with EAPs available to them, over half cited financial planning help was available to them by way of the EAP. This survey response may also be low given that 16% of employees were not sure if financial planning help was available. This chart confirms the growing trend o f E A P s i n c l u d i n g financial-related services. H a v e y o u e v e r u s e d t h e f i n a n c i a l p l a n n i n g c o m p o n e n t o f t h e E A P?

6 P r o f e s s i o n a l E d u c a t i o n Survey participants were asked about education from group retirement plans as well as CFP professionals. Participants were also asked about their desire to take advantage of CFP assistance if it were provided within their employer s financial wellness benefits. H o w o f t e n d o t h e p r o f e s s i o n a l s a s s o c i a t e d w i t h y o u r r e t i r e m e n t p l a n p r o v i d e e d u c a t i o n a t y o u r w o r k p l a c e? T h e s u r v e y represents a large shift in the never category from nearly one third of employees in 2014 to less than one fifth. Annual plan advisor education continues to average once per year for most employees. All education categories grew from 2014 to 2015 with the exception of the never category. W h a t t o p i c s a r e c o v e r e d i n t h i s e d u c a t i o n? For those employees receiving plan education, the most common topic covered was retirement, fo l lowed clo se ly by investments. The topics covered in plan education remained fairly constant from 2014 to Benefits professionals may c o n s i d e r m a t c h i n g education to the age groups and primary concerns listed in the Overall Knowledge & Priorities section of the 2015 survey. H a v e y o u e v e r m e t w i t h a n i n d e p e n d e n t C F P b e f o r e? While many Americans receive financial education in the workplace, some receive it directly through professionals such as C E R T I F I E D F I N A N C I A L PLANNERS TM. Approximately 58% of all employees have n o t m e t w i t h a n independent CFP before. This illustrates a large p e r c e n t a g e o f t h e population which receives no financial education from financial planners on an individual basis or through the workplace.

7 S u m m a r y The results of the 2015 E m p l o y e e F i n a n c i a l Wellness Survey illustrate a continued desire for education on topics such as retirement, debt and investments. However, many employees receive no education whatsoever. EAPs are filling the education and financial wellness gap more than in 2014, although some survey respondents cited the EAP services were too general in nature. Overall w o r k p l a c e w e l l n e s s continues to grow in popularity. The benefits rating section was new for the 2015 survey and i l l u s t r a t e d a d i r e c t correlation to positive satisfaction when general wellness and financial wellness are provided as benefits. Four Seasons Financial E d u c a t i o n r e m a i n s dedicated to providing leading industry research to help the wellness and benefits communities better understand the needs and trends of w o r k p l a c e f i n a n c i a l wellness. A b o u t F o u r S e a s o n s F i n a n c i a l E d u c a t i o n Four Seasons Financial E d u c a t i o n p r o v i d e s w o r k p l a c e f i n a n c i a l wellness and consulting services to companies throughout the US in an effort to improve their bottom line. We take a strictly academic approach to financial wellness, with no financial product sales whatsoever, and focus on the core areas of personal finance. Our goal is to i n c r e a s e e m p l o y e e p r o d u c t i v i t y a n d organizational performance for our clients. S u r v e y D e m o g r a p h i c s a n d D e t a i l s Four Seasons Financial Education utilized the s e r v i c e s o f S u r v e y Sampling International (SSI). The survey sample included a total of 572 full time employees from various states around the US. The surveys were taken between February 26th, 2015 and March 2nd, Below is the SSI methodology process: The sample used for this study is SSI s online sample, which is managed to allow the selection of samples to reflect the target population. The sample was selected from a universe including SSI s proprietary panels, as well as from partnerships with o t h e r p a n e l s a n d communities so populations who may not wish to join a research panel are included in the frame also.

8 Confidence limits based on the sample size within the sampling frame described above are as follows: if the study was repeated using the same set of sources, 19 times out of 20 we would expect to get a result within +/- 3% of the results we have here. [This assumes a sample size of 1,000; if you re analyzing one segment with only 200 people in it for example, the results would be accurate only to +/- 7% 19 times out of 20.] Proprietary panel contact method includes i n v i t a t i o n. O t h e r respondents are directed to S S I v i a t r u s t e d partnerships. Once within SSI s system respondents are matched with an available survey using m u l t i p l e p o i n t s o f randomization. Security checks and quality verifications are used on all s o u r c e s b e f o r e t h e respondent can begin any survey. All external sources undergo SSI s partner verification process, which scores them based on accuracy against external measures of the data s u p p l i e d b y t h e i r respondents, as well as successful completion of a series of Quality Control checkpoints. Additional quality measures include digital fingerprinting to prevent duplication, spot checking via third party verification to prove identity, reward redemption q u a l i t y p r o c e d u r e s, benchmarking against known external data points and SSI s blend algorithm which monitors the sample for consistency on a number of personality and psychographic measures drawn from academic literature. R e s p o n d e n t s b y A g e