PLANADVISER - May/June 2018 - 10

Making Workplace Financial
Wellness Actionable:
Moving Beyond Education
T
he notion of promoting financial wellness
through workplace programs has
been gaining traction for several years now.
Still, fewer than one in four employers have
implemented a financial wellness program,
and many remain uncertain about what
such a program should look like. To find
out where financial wellness programs are
heading, and how plan advisers can help
plan sponsors get there, PLANADVISER
spoke recently with Nathan Voris, managing
director, strategy, for Schwab Retirement
Plan Services.
PLANADVISER: Let's start with the basics.
What does " financial wellness " mean at
Schwab Retirement Plan Services, Inc.?
Nathan Voris: First, financial wellness is not
new to us. It's in our DNA and we've been
helping employers and participants for
decades. To us, financial wellness means
that people can understand and address
their financial priorities, like managing
short-term finances, and balancing that
with setting and maintaining longer-term
goals.
For
retirement plan participants,
this starts with making the most of their
workplace financial benefits and providing
access to resources to help them create a
broader plan.
PA: The retirement industry has spent
decades educating employees about
investing for retirement. Why the need now
for broader financial wellness programs?
Voris: It's clear people need more help. Many
Americans are saving for retirement in workplace
plans yet only about half of plan participants
are highly confident making investment
decisions on their own1
-and many aren't
saving enough to maintain their lifestyle after
they stop working. Meanwhile, more than
half of Americans can't come up with $500
in an emergency,2
payments on time.3
employers,
or make their monthly loan
These things impact
too. According to a survey we
conducted last year, 30 percent of non-savers
and 21 percent of savers say personal financial
stress has affected their job performance.1
PA: If education hasn't worked completely
on the retirement front, why should we
expect that more education-even in the
form of a more expansive financial wellness
program-will work?
Voris: Education is just one part of
the
picture. A financial wellness program also
has to identify next steps and provide the
tools and guidance people need to take
immediate action-to actually get things
done.
PA: Are employees asking for this?
Voris: Absolutely. More than three-quarters
of the people we surveyed said they would
welcome a workplace financial wellness
program that provides education, tools and
resources to help with their overall financial
health.1
Nathan Voris
savers and investors analyze their situation,
set or evaluate their goals, and create or
revisit their financial plans so they feel confident
taking action.
PA: What goes into creating a program like
this?
Voris: It requires a combination of intelligent
technology and personalized guidance-
high-tech, high-touch, or both. From our
perspective, the best approach is to efficiently
and intuitively create the shortest
distance between a person's need and the
right next step for them. And we believe we
can help any employer improve their support
of employee financial wellness.
But it has to be easy to use and
feel tailored to them. People expect efficient
interactions. They want clear, meaningful
next steps, and the ability to take action in
the moment. Say I learned about ways I can
save money for my child's college education.
Where do I go to actually open an
account? Or what if a calculator shows me
I need more retirement savings than just
my 401(k)-even if I'm contributing the
maximum allowed? What else should I be
doing, and how do I get started?
PA: What are some of the key components
of a financial wellness program like this?
Voris: When we asked employers what
mattered most to them in a financial wellness
program,
they generally
agreed it
should include broad guidance on personal
financial management
principles,
online
access to education and planning tools,
full integration with existing benefits, and
measurable impact. They also cited supplementary
access channels, niche education
topics and one-on-one advice as " nice to
have " elements.4
PA: What's in this for employers?
Voris: Because financial stress affects individuals
and the workplace, employers have
a vested interest in helping their employees
get on the right path and take ownership of
their financial futures. Further, as recruiting
competition increases, benefits that demonstrate
that a company cares for a person's
full
life may help employers attract and
retain top talent.
For more information, visit
schwab.com/financialwellness
1
Participant Survey, 2017
2
Schwab Retirement Plan Services, Inc. 401(k)
From Bankrate 2017 Money Pulse Survey
3 2017 Schwab Modern Wealth Index
4 The Charles Schwab Corporation Employer
Financial Wellness Survey, 2016
We decided to include it
all, so that individual employees can engage
and act based on their unique situation. Yes,
we provide resources for people who may be
struggling to get a handle on the basics and
start saving. But we also help experienced
SPONSORED SECTION

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PLANADVISER - May/June 2018

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