Helping Employer 401(k) Plan Participants with Financial Decision-Making
January 23, 2023
Over the past few years, we’ve experienced our fair share of financial uncertainty. Whether in the stock market, labor market, or even the supermarket, most of us have felt financial stress on some level. Recent market volatility and inflation add even more uncertainty to already-complex investing and retirement decisions.
If you’re an employer, you’ve likely seen first-hand how this financial stress and uncertainty has impacted your employer 401(k) plan participants. At best, it’s made their financial decisions more intimidating; at worst, it’s side-tracked their retirement saving efforts. How can you help your plan participants get back on track with their financial decision-making? Meghan Hannon, CRPS®, Boulay Senior Retirement Plan Manager, explains.
Participants Want Help with Financial Decision-Making
As we dealt with the trials and tribulations of the pandemic and settled into our new post-COVID normal, everyday decisions became more complex, and decision-making fatigue became a reality. Financial decisions are just as challenging. In fact, in John Hancock’s 2022 study of stress, finances and well-being,[1] nearly 60% of respondents said their finances are a cause of stress.
To get help with stressful financial decisions, employees are turning to the professionals. The study indicated that many employees are eager for help with their financial well-being. Among those surveyed, the groups who were most likely to want help making financial decisions were:
- Employees younger than age 36 (89%)
- Women (88%)
- Employees with $50,000 to $99,000 annual income (89%)
- Singles (89%)
- Employees with a debt problem (90%)
Further, several topics stood out as those with which employees are seeking guidance:[2]
- Social Security strategies
- Forecasting retirement income
- Estate planning
- Assessing financial wellness and gaps
- Emergency savings
- Saving for college
Opportunity for Improved Financial Wellness
As employer 401(k) plan participants look for help with their financial decisions, the retirement plan industry—financial professionals, retirement plan consultants, plan sponsors and employers—is presented with an important opportunity. Now more than ever, the scope of the industry is broadening beyond retirement planning, to include overall financial wellness. With this shift, industry professionals must provide solutions and services that help plan participants balance their competing financial priorities.
Industry professionals can help participants with their financial decision-making in a number of ways. For example, many plan sponsors are incorporating financial wellness programs which educate participants on a variety of financial topics, equipping them for better decision-making and long-term financial success.
Further, retirement plan consultants, such as Boulay, provide participant education programs to help educate participating employees about their plan, to ensure they are equipped with the necessary tools to make the right plan and investment decisions. With a better understanding of the financial topics related to their plan, employer 401(k) plan participants are more likely to achieve retirement readiness and make long-term improvements to enhance their financial futures.
Helping You Get There…
One of your primary goals as a plan sponsor is to equip your employees with the necessary tools to make smart financial decisions, so they can achieve their retirement goals. Boulay’s retirement plan consulting team provides ongoing participant education and advice to ensure your employees can fully enjoy the benefits of your plan.
To learn more about how our retirement plan advisors help you get there with advice and services for your employer 401(k) plan participants, connect with us today.
[1] John Hancock Study of Stress, Finances and Well-Being (August-September 2021). https://retirement.johnhancock.com/us/en/financial-stress-survey
[2] John Hancock: Workers want help making these financial decisions https://retirement.johnhancock.com/us/en/viewpoints/financial-wellness/workers-want-help-making-these-financial-decisions
Investment Advisory Services offered through Boulay Financial Advisors, LLC a SEC Registered Investment Advisor. Certain Third Party Money Management offered through Valmark Advisers, Inc. a SEC Registered Investment Advisor. Securities offered through Valmark Securities, Inc. Member FINRA, SIPC
Boulay PLLP and Boulay Financial Advisors, LLC are separate entities from Valmark Securities, Inc. and Valmark Advisers, Inc. Prime Global is not affiliated with Valmark Securities, Inc. and Valmark Advisers, Inc.
More Recent Stories
Input your search keywords and press Enter.