Household Finances Top Source of Employee Stress
Household finances cause more stress than personal health or work issues, according to Financial Triage: Assessing Financial Wellness, a new LIMRA study.
Nearly half (42%) of respondents reported that household finances cause “somewhat high” or “very high” stress levels compared with other areas of their lives. At 29%, personal health or work issues were considered the second highest source of stress.
A look at respondents’ financial situation helps explain the high levels of stress.
According to the study:
- 42% have no rainy-day saving
- Only 18% are debt-free
- While 60% of non-retirees are saving for retirement, only 32% have a long-term financial plan
On the positive side, 8 of 10 respondents have an interest in at least one area of financial education, with half seeking help with general budgeting.
"Consumers with the highest stress levels are looking for basic financial education like budgeting, reducing debt and understanding employee benefits. Effective financial wellness programs should address these fundamental topics, as well as retirement planning and other long-term interests,” said Jennifer Douglas, associate research director, Development Research at LIMRA.
Financial Health = Employee Wellness
In response, Brian Cosgray, cofounder and CEO of DoubleNet Pay, noted that employers are increasingly embracing financial health as part of employees’ overall wellness.
“More employers are looking beyond helping employees with retirement savings plans and participation," he said, "providing comprehensive financial education and solutions that address the challenges employees are facing today–such as daily cash flow management, rising health care costs, unforeseen medical emergencies, loss of income, and having a clear view of their discretionary funds."
Simply educating employees on best financial practices in preparation for retirement is not enough. It’s difficult for employees to grasp the importance of saving for retirement when they’re having difficulty managing their current financial needs.
Beyond financial education and assistance with budgeting, employees need tools that take the stress out of managing their daily finances. We are working daily with employers who see the benefit of tools that automate short-term cash flow management and savings, and, in essence, automate personal finance best practices. The tools do the work for employees, require a minimum amount of input from them and enable them to focus on the more pressing demands of their work and families.
About DoubleNet Pay
DoubleNet Pay is a leading-edge financial wellness app that fully integrates with employer payroll providers to automatically pay employees’ bills and fund savings plans. DoubleNet Pay is named for and founded on the principle that bills should be paid and savings funded before discretionary spending. By making this good habit automatic, employees can see their actual disposable income—their DoubleNet Pay—for each pay period. In this way, DoubleNet Pay helps reduce or eliminate financial emergencies caused by unexpected bills and "too much month left at the end of the money.”