It’s no secret that the defined contribution (DC) system suffers from two very serious problems: Leakage, meaning the premature withdrawal of retirement savings from the 401(k) system, to the detriment of participants, sponsors, advisors and providers; and Friction, meaning the complex rollover procedures and absence of participant assistance that lead to sub-optimal decision-making and outcomes.
Consumers’ debt problems are reverberating at work. Employers worry that debt is hurting workers’ productivity on the job and cite credit card and other consumer debts as the No. 1 reason their employees are struggling financially. It’s a root cause for why financial wellness programs are springing up at the workplace, including and especially debt management programs
Ken Verzella, Head of Financial Wellness for Massachusetts Mutual Life Insurance Company,, from his article Declaring War On Debt