What employers can and should do
This survey shows the impact that life events have on financial wellness and retirement savings. It also shows how strong habits now, such as keeping a budget and using 401(k) match programs, are essential for building a strong retirement. Edelman Financial Engines’ prior research showed employees want, need, and expect support from their employers, especially during key life events and in building healthy financial habits.
Employers have an opportunity to remove their employees’ savings hurdles by offering a holistic financial wellbeing platform.
What Financial Wellness Tools/Support Does My Employer Offer?
47% of employees say their employer doesn’t offer any financial wellness tools or support.
This is a sign that employers need to better promote their services, so employees are more aware of what’s available to them.
There are clear benefits to offering these programs. Employees who say their employer offers these resources have higher savings rates and view themselves as better savers than those employees who say their employer doesn’t offer such tools.
of employees who say their employer offers financial wellness tools rate their savings as “good” or “very good”.
Among employees who say their employer doesn’t offer financial wellness tools, only 33% rate their savings or good/very good.
While employees’ savings and spending goals and habits vary across groups, two things clearly affect savings behaviors across the board:
Key life moments and their financial implications
Healthy financial habits such as creating a budget and using 401(k) match
Addressing the financial implications of those key life moments and developing those financial traits are essential to helping employees build towards their long-term goals. Through holistic financial wellness programs, employers can offer key support to employees during major life events and help them build essential financial skills to create better financial futures.
Edelman Financial Engines offers personalized financial solutions for employees at every stage of life, supporting employees’ everyday financial wellness and helping every employee achieve their financial goals. Contact us to learn more about our workplace financial solutions and how we can help you and your employees.
© 2023 Edelman Financial Engines, LLC. Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All advisory services offered through Financial Engines Advisors L.L.C., a federally registered investment advisor. Results are not guaranteed. AM293080
Survey Methodology:
Edelman Financial Engines conducted a survey of America’s employees on February 9-22, 2023, focusing on employee savings behavior and the impact that today’s life events have on long-term retirement savings. Sample size was 1,873 full-time employees. Fielding was conducted on the Quantilope Consumer Intelligence Platform. Demographics are available upon request.
About Edelman Financial Engines
Since 1986, Edelman Financial Engines has been committed to always acting in the best interests of our clients. We were founded on the belief that all investors deserve access to personal, integrated financial planning and investment advice. Today, we are America’s top independent financial planning and investment advisory firm, recognized by Barron’s,1 with 145+ offices2 across the country and entrusted by more than 1.3 million clients to manage more than $241 billion in assets.3 Our unique approach to serving clients combines our advanced methodology and proprietary technology with the attention of a dedicated personal financial planner. Every client’s situation and goals are unique, and the powerful fusion of high-tech and high-touch allows Edelman Financial Engines to deliver the personal plan and financial confidence that everyone deserves. For more information, please visit EdelmanFinancialEngines.com.
1The Barron’s 2022 Top 100 RIA Firms list, a ranking of independent advisory firms, is qualitative and quantitative, including assets managed by the firms, technology spending, staff diversity, succession planning and other metrics. Firms elect to participate but do not pay to be included in the ranking. Ranking awarded each September based on data within a 12-month period. Compensation is paid for use and distribution of the rating. Investor experience and returns are not considered. The 2018 ranking refers to Edelman Financial Services, LLC, which combined its advisory business in its entirety with Financial Engines Advisors L.L.C. (FEA) in November 2018. For the same survey, FEA received a precombination ranking of 12th.
2 Firm stats as of Dec. 31, 2021.
3 Firm stats as of June 31, 2023