Many benefits advisors and employers are recognizing the link between financial wellness and overall wellbeing.
That's because the American worker's paycheck to paycheck problem is pervasive and expensive. But new advisor-driven solutions are coming to market.
Jameson Fauver is director of business development at Kashable. He joins the ShiftShapers podcast this week to discuss why financial health is the big problem that nobody is talking about. We will learn how a seemingly simple issue faced by millions of employees can be helped by new services coming to the employee benefits space.
The problem with financial wellness is surprisingly large. Seventy-six percent of American workers live paycheck to paycheck. Over half of these workers have less than $1000 in savings. When emergencies hit, employees may have limited options because traditional banks do not offer unsecured loans to consumers. Employees generally turn to high-interest credit cards, loans against retirement plans, or payday lenders. None of those options provide good choices for employees, and the financial stress that comes with them impacts both wellness and productivity.
Employers can offer low-cost, socially conscious solutions that solve a needed problem. Jameson provides several solutions that benefit advisors can package into their offerings for employers. There are three channels that advisors can explore when approaching the benefits of a financial wellness program. We dive into these simple, common sense solutions that advisors should definitely consider.
