
Tackle, tailor, teach: The three Ts of financial wellness communication
As the workplace becomes increasingly diverse, setting employees up for financial success is becoming more challenging. With multiple generations, family structures and different levels of health care understanding that may exist, effectively engaging employees in their own financial well-being is no easy task.
A recent Mintel study, the American Lifestyles: Markets in Motion‡, shows there is a clear difference in how generations feel about their finances. The report from April 2018 states adults aged 55-plus are more than twice as likely as those aged 18 to 34 to report a “healthy” financial situation—the complication is that most employers must educate and support both these demographics at the same time. As such, companies must take a unique approach to financial wellness communication to ensure all employees are properly educated on solutions that can benefit their own financial situation. Here are three financial wellness communication items to consider:
Gather and analyze data – and then set strategic goals based on findings
Tackling, or understanding, how different demographics feel about and approach financial decision-making is the first step in setting the stage for overall financial wellness. Traditionally, retirement plans like 401(k)s, and health savings vehicles like health savings accounts (HSAs), have been considered and communicated separately. However, as planning conversations shift toward holistic wellness planning, these programs are now being discussed together—as complementary resources that can work together to support financial wellness today and in the future.
UMB regularly analyzes the data on its more than 1 million active HSA accountholders to better understand how users engage with their accounts. Data segmentation is a key component of both understanding employees’ current needs, and defining meaningful goals and strategies to help move each segment forward on the financial wellness path. For example, by utilizing segmentation tools, employers can determine if employees are contributing enough money to their HSAs, and through financial wellness communication, help them set specific goals to increase participation in investments. These efforts, combined with a tailored approach to 401(k) investing, can help employees learn how to make educated decisions about their financial future.
Remember one size doesn’t fit all
However, everyone has one thing in common–health care will be one of the greatest expenses incurred during retirement.
Stress education and small steps
Educating employees about the importance of utilizing HSAs as a long-term savings option and pairing it with their 401(k) is a great place to start. Also, by debunking the use-it-or-lose-it myth that is often mistakenly tied to HSAs, employers can encourage users to save even just a portion of their yearly contributions, which could make a big impact in the future. For example, if an individual saves $75 a month—the equivalent of eating fast food twice a week—for 30 years, they would have another $27,000 for their health care retirement needs. If they saved the maximum individual amount of $3,450 annually for the same timeframe, they would have $103,500.
By understanding employee differences, learning about their health care spending habits, and tailoring solutions to their individual situations, employers can help ensure overall financial wellness and motivate positive actions. This includes providing targeted education about tailored, long-term savings options, which can help prepare employees for health care costs now and in the future. Learn more about UMB Healthcare Services to understand how we can help you reach your goals.
When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.
UMB Financial Corporation
Leave a Reply Cancel reply
Archives
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- April 2016
- January 2016
- October 2015
- September 2015