401(k) trends

What’s Your Financial Wellness ROI?

Independent retirement plan advisor examines employee Financial Wellness survey results

BETHESDA, Md., March 21, 2017 /PRNewswire/ — AFS 401(k), a retirement consulting firm in Bethesda, MD, has released new, independent research on Financial Wellness designed to give c-suite executives and employee benefits professionals insight into the motivation for and return of investment on these programs for employees and companies.

AFS 401(k) recently interviewed 1,000+ working professionals and surveyed over 500 employees to learn about their financial priorities, struggles, and purpose behind why benefits professionals need to go above and beyond the retirement plan when it comes to embracing Financial Wellness.

The white paper, “Beyond Retirement: An Examination of Financial Wellness for Employers,” provides insight into:

  • The financial behavior exhibited by employees in a broad range of industries, incomes and backgrounds focusing on three main areas: Debt, Budgeting and Savings;
  • Analysis on what these reported behaviors and trends mean for developing a Financial Wellness program;
  • Real-life case studies illustrating examples of companies who are in different stages of integrating Financial Wellness into their benefit offering;
  • Action steps employers can take to execute and implement a successful Financial Wellness program.

Of the drive to create this resource, Alexander Assaley, Managing Principals with AFS 401(k), states: “During the last ten years, we have had the opportunity to meet one-on-one with nearly 10,000 working Americans, and in these conversations, have realized that the biggest needs, challenges, and goals of employees aren’t confined within their 401(k) – workers need and want help with their entire financial picture and the majority are looking towards their employer for guidance and advice. Further, we wanted to validate how a thoughtful, integrated Financial Wellness program can produce real results for employees and their employer.”

Through independent research, AFS 401(k) has painted a clear picture of why Financial Wellness programs are important and shows the positive effect these programs can have on American workers with real data. A few key data points uncovered include:

  • Despite respondents’ employers seeing high retirement plan participation rates (98.8%), other areas of employees’ financial lives are suffering: 71% do not have a 3-month emergency fund, 62% do not pay off their credit cards every month, and 36% are struggling with both credit card and student loan debt.
  • After implementing a Financial Wellness program, one organization saw a jump in retirement plan participation rates from 73% to 93% in less than a year
  • Despite new innovations in technology, employees’ preferred avenue for financial education is a one-on-one session with a financial advisor (63%).

To learn more about these findings and see our analysis, download a complimentary copy of the white paper, “Beyond Retirement: An Examination of Financial Wellness for Employers.”




About AFS 401(k) Retirement Services
AFS 401(k) Retirement Services is an independent retirement plan advisory firm located in Bethesda, MD. Founded in 2006 and with $1.1 billion in assets under management currently, AFS 401(k) has helped companies and their employees simplify complex retirement plans by offering services in fiduciary oversight, plan design and customized employee education programs. To learn more about AFS 401(k)’s work in retirement plans and industry recognition, please visit our Press page here.