Prior to COVID-19, many employees were already struggling to successfully save for retirement, often prioritizing day-to-day expenses rather than saving for the future. 55% of employees expect to postpone their retirement due to their financial situation.
Metlife’s Employee Benefit Trends Study reported that employees are significantly more likely to have poor financial health if they:
|
|
|
How much have employees been affected by COVID-19? At FinFit, we’re focused on providing the necessary support for our members to help them regain and maintain their financial stability. We went to the data to see how employees have been directly impacted by COVID-19. Since March 15, there has been a 20% increase in FinFit members that do not contribute to their 401k.
20% more employees were contributing to their 401k prior to COVID-19. The data also shows that 11% of employees have stopped paying down debt since the COVID-19 crisis. Unfortunately, this is not surprising with nearly one in three Americans experiencing temporary layoff, permanent job loss, a reduction in hours or reduction in income as a result of the coronavirus situation. Employees are tackling current financial challenges; they have been forced to prioritize current financial needs over longer-term planning.
Taking a vacation has always been a top financial goal based on our member data. Since March 15, there has been a 16% decrease in employees’ that previously had taking a vacation as a top financial goal.
Now? We’ve seen a 14% increase in employees’ who have prioritized setting up an emergency fund as a top financial goal.
Why are financial wellness services so critical for helping your employees navigate this current financial crisis as well as future financial challenges that certainly will come?
Holistic financial wellness programs are designed to help employees manage their finances in the short-term, create a plan to achieve their long-term financial goals while handling unexpected challenges along the way. Financial wellness gives individuals the ability to pursue opportunities due to the stability of having a day-to-day financial system, which includes the capacity to spend, save, borrow, and plan effectively.
A well-structured financial wellness program provides tailored guidance and recommendations specific to each employee’s unique financial situation. Appropriate knowledge and resources give employees the confidence and means to manage their financial lives, from weathering unexpected challenges to paying down debt to saving for retirement.
Financial wellness services are even more valuable during crises like the COVID-19 pandemic, helping employees manage and reduce the stress brought on by financial challenges and allowing them to maintain a positive state of mental well-being. It is critical to have the appropriate support, resources and mindset to attack a crisis like COVID-19 with optimism and battle back to the positive side of the mental and financial health scale.
© Copyright . All rights reserved.
Loans are made by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. Loans subject to credit approval. Loan products, features, and service providers vary by state. Service providers are FinFit Ops, LLC (see licenses) or its affiliate, Salary Finance, Inc. (see licenses). See application terms and loan agreements for more details.
Funding time dependent upon funding method selected. Expedited funding may incur additional fees.
FinFit is a financial technology company and is not a bank. Banking services provided by Choice Financial Group; Member FDIC.
Student loan services are provided by unaffiliated third parties. FinFit loans issued by Celtic Bank do not include student loans.
Wage Now is fully funded and managed by an affiliate of FinFit. If any fees apply, those fees will be disclosed prior to entering into any agreements.
Residents of California, New York, North Dakota, South Dakota, Tennessee and Vermont are not eligible for WageNow. This does not constitute an offer or solicitation for WageNow to residents of those states.
FinFit’s Financial Wellness Program, which includes educational content, a financial assessment and a financial dashboard, are free to registered members.
Services offered may incur fees and/or interest. All fees will be disclosed prior to entering into any agreements.
Products listed are a representation of FinFit offerings. Actual availability may vary. The products available to you and your organization will appear on your FinFit membership dashboard. Actual loan amounts and rates offered vary based on lender, credit worthiness and other factors.
Privacy Notice (Sp) | FinFit Privacy Policy (Sp) | Licenses | *US Patriot Act | Website Terms & Conditions | Member Rewards Terms & Conditions
SC Consumer Rights & Responsibilities | NM Small Loan Consumer Brochure | NM Loan Rate & Fee Disclosure | Additional Information for NM Residents