With or without global volatility, good financial education and reassurance about long-term retirement savings strategies, portfolios, and other aspects of personal budgeting can help remove money as an extra worry that only compounds other stress. An increasing number of business leaders seem to think so: 67% of retirement plan sponsors say they intend to focus on retirement planning education for employees in 2022, up from 48% in 2021.1
Here are several ways you can ensure employees have access to that education.
1. Support employees’ financial confidence.
Many employees lack confidence and delay major financial decisions, according to Principal® research.
But the data also suggests that delaying only exacerbates stress. Helping boost your employees’ financial confidence can pay dividends with their morale both at home and at work.
2. Offer financial wellness programs.
Holistic financial knowledge is a key to greater confidence. Principal® Milestones, for instance, offers financial wellness tools, resources, and education (with Enrich and ARAG) to all our retirement plan participants—for every stage of their lives.
3. Offer emergency financial relief.
Consider timely ways your business can assist employees affected by the numerous climate disasters or other emergencies that may sap their personal finances. Principal, for example, offered relief funds to employees who were victims of a Midwest inland hurricane (with 140-mile-per-hour straight-line winds) known as a “derecho.”
4. Help employees organize their finances.
Encourage employees to spend a rainy morning and tackle these 5 steps to organizing your personal finances, so they’re not only ready for the next unexpected event, but their family is also prepared to handle financial basics without the additional stress of uncertainty over where to find all the crucial information. Even better, show how serious you are about this planning by providing them paid time at work—maybe with free food in a relaxed atmosphere—and gentle guidance in the form, say, of one of our Principal webinars (principal.com/learnnowondemand).
5. Help employees fund their futures.
Offering a robust retirement plan with a company match is one of the primary ways to help your employees engineer their long-term financial security. Your employees also can follow our step-by-step guide to building your own financial plan—to set their financial goals, create a budget, plan for taxes, and more.
What's next
Want to talk more in depth about employee mental health, employee benefits, and your business? Consult your financial professional, or we can help you find one in your area.
