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Financial Wellness Research

S E P T E M B E R 2 0 1 9

2

Table of Contents

Background & Methodology 3

Executive Summary: The Case for Financial Wellness 4

Key Findings 5

Detailed Findings 11

Perception of Financial Wellness Programs 12

Financial Wellness Program Experts and Providers 18

Current State of Financial Wellness Programs 24

Perceptions of Employee Financial Wellness 39

MapMyFinances 48

Profile of Respondents 53

3

Background & Methodology

● This report presents the results of an online survey conducted by Greenwald & Associates on behalf

of MassMutual. The purpose of this study was to collect compelling data points for MassMutual to

demonstrate thought leadership in the financial wellness arena, to better understand the appeal of

financial wellness and barriers to implementing from the plan sponsor perspective, as well as to get

a picture of what plan sponsors are offering for financial wellness programs in the market today.

● This survey represents the second phase of a two-phase study, the first of which was a series of one-

on-one interviews with plan sponsors and plan advisors.

● Information for this study was gathered through an approximately 15-minute online survey with a

total of 863 plan sponsors with retirement plan assets between $1 million and $75 million. All

participants must have some decision-making responsibility for either their retirement plan or

financial wellness program to participate.

● Respondents for the survey were recruited through OpinionRoute’s online panel of B2B respondents.

Online interviewing took place from August 21, 2019 through September 3, 2019.

● Please note: graphs may not add to 100% due to rounding and/or missing categories. All statistical

testing was done at 95% and 99% significance levels. In a similar sized random sample, the

maximum margin of sampling error for the total surveyed is 3.3% at the 95% confidence level.

The data represented was gathered by Greenwald & Associates and does not represent the opinion of MassMutual.

4

Executive Summary:The Case for Financial Wellness Programs

Plan sponsors express a high level of interest in comprehensive financial wellness programs, likely in

response to the financial struggles they observe among their employees. While retirement planning and

saving is often the focal point of these programs, plan sponsors expect more to be included - like online

tools, insurance benefits, and often an educational or advisory component. While these focus areas are

included in the programs that are offered today, plan sponsors identify other areas of employee needs,

including struggles with cost of living and housing, debt management, lack of savings, and

child/eldercare, that are not being addressed by their current benefits offering.

Once rolled out, plan sponsors often see successful programs with few challenges, and they are looking

to employee feedback and participation to measure success. When challenges do emerge, they are

most commonly lack of participation or unexpected costs for plan sponsors.

Plan sponsors view companies like MassMutual - who offer expertise in retirement, investments, and

insurance - as the best source for financial wellness, and often partner with financial planners or advisors

or plan advisors to learn about and implement their programs. Despite the appeal of working with a

single provider for all non-medical benefits, only about half currently are doing so. Taken together, these

represent a great opportunity to highlight MassMutual’s expertise in financial wellness, along with the

unique ability to offer all components of a comprehensive non-medical benefits package.

Online tools are a major component of financial wellness programs but are not the most successful. A

description of MapMyFinances was well received with few concerns, mostly centered on privacy and

security. Addressing those concerns may help to improve adoption of online planning tools.

Key Findings

6

Key Findings: Need for Financial Wellness Programs

Plan Sponsors see a large need for financial wellness for their employees and

think it’s important for employers to offer that support.

● Eight in ten plan sponsors believe their employees are struggling financially, and often in

ways that are not addressed by their current benefits offering.

● Seven in ten believe their employees face financial challenges their current benefits do not

address, like cost of living, debt management, lack of ability to save, and child and elder

care.

● They are aware of such challenges because they hear their employees talking about them,

they see lower retirement plan participation than they would like to see, their employees are

taking on second jobs, or taking loans from their retirement plans.

● Nearly nine in ten plan sponsors believe it is important for employers to offer financial

wellness programs to their employees.

● As employer size and retirement plan assets grow, so does perceived importance of

financial wellness programs.

● The vast majority – nine in ten - of plan sponsors agree that companies who offer

financial wellness programs really care about their employees, and large majorities also

agree that these companies are on the cutting edge of benefits offerings and that these

programs are a great way to support employees at minimal cost to employers.

● Nearly six in ten plan sponsors believe their employees are looking to them, their

employer, for support.

7

Key Findings: Components of Financial Wellness

Plan sponsors view financial wellness programs as being inclusive of

topics outside of retirement planning, whether that be a full

comprehensive view of employee finances, or insurance and

educational components.

● When defining financial wellness, plan sponsors most often report that it is more

comprehensive than the simple availability of retirement savings vehicles and

insurance benefits – a finding repeated from phase one interviews.

● Plan sponsors most often identify financial wellness programs as being a

comprehensive program to address an employee’s full financial picture. Beyond

that, they select some combination of retirement, insurance, and education or

retirement and one-on-one counseling.

● Most commonly, plan sponsors report financial wellness programs typically include

retirement savings vehicles, online tools for planning (either for retirement only, or

full financial planning) and insurance. Student loan assistance is the least offered,

and least likely to be viewed as being a part of this type of program.

8

Key Findings: Providers and Experts

At the advisor level, Financial Planners and Advisors, or Plan Advisors are

viewed as top sources of information related to financial wellness. At a

provider level, companies who offer expertise across the various areas

included in financial wellness are the best source.

● When looking for information or partnership on financial wellness programs, plan sponsors are

most likely to start with financial advisors, followed by plan advisors. Once they begin offering

or implementing these programs, they are most likely to be working with one of these two as

well.

● Companies like MassMutual are best suited to offer financial wellness programs, according to

eight out of ten plan sponsors.

● This is because, unlike competitors who offer just insurance, or investments, or retirement

plans, companies who offer all three offer a comprehensive and well-rounded perspective

based on their expertise in all three areas.

● Almost all plan sponsors agree that providers who offer financial wellness are more appealing

than their peers who do not, and three out of four find the idea of a single provider of non-

medical benefits to be appealing, mostly due to having a single point of contact and for

convenience purposes.

● Despite this interest and the convenience that a single provider would offer, only about

half of those surveyed currently are working with a single provider.

9

Key Findings: Current Financial Wellness Programs

● Among those who have implemented a program, results have been positive in

most cases, with eight in ten saying they have been successful. They are

evaluating success most often by utilizing employee feedback and usage and

participation.

● The most successful programs have been retirement savings plans – by far.

These are distantly followed by insurance benefits. Least successful are

online planning tools.

● Most have not experienced challenges with their programs, and those that

have are mainly seeing low participation or costs above what was

anticipated.

● When asked why they offer these financial wellness programs to employees, plan

sponsors are most likely to say they help employees address issues they are

facing, for employee engagement and morale, because it feels good that their

employees get the support, and for attracting and retraining employees.

● Those that do not offer or plan to offer these programs are not doing so

because they do not know enough about them, or due to cost.

Six in ten plan sponsors are currently offering or implementing financial

wellness programs at their companies. Another one in three are planning to

implement or are interested in these programs.

10

Key Findings:

● About the same proportion agree the tool would be useful to their employees

and that they, themselves, would like access to it.

● The comprehensive nature of the tool is what is most appealing to plan

sponsors, who also like that it gives employees simple steps to take and that

it is self-serve and online – themes that also came up in phase one interviews.

● The biggest concern plan sponsors have with this tool is the privacy and data

security, and others are concerned that it may be too complex for

employees.

● Most (9 out of 10) agree this tool is comprehensive, with nothing missing.

Among the few who do think something is missing, the top suggestion is some

sort of live help or interaction.

● It is important to note that plan sponsors place online tools among the least

effective offerings of their financial wellness programs.

The MapMyFinances program description was moderately well received,

with more than half agreeing they would like access to this tool for their

employees.

Detailed Findings

Perception of Financial Wellness Programs

13

The majority of plan sponsors surveyed say financial wellness programs are important

43% 43%

13%

<0.5%<0.5%

Critically important

Somewhat important

Nice, but not important

Not at all important

Completely unnecessary

86% say Financial

Wellness

programs are

important

As employer size and retirement plan assets grow, so does the perceived importance of these programs.

Importance of Financial Wellness Programs

How important is it for employers to offer Financial Wellness Programs to employees? Total (n=863)

ABCD EFGH indicates result is significantly higher than the group specified at the 95% level of confidence.

% Important

Number of Employees

<25 (n=63) (A) 72%

25-99 (n=126) (B) 86A

100-999 (n=418) (C) 88A

1,000+ (n=256) (D) 94ABC

Plan Assets

$1-<$5MM (n=250) (E) 85%

$5-<$15MM (n=212) (F) 87

$15-<$25MM (n=178) (G) 93EF

$25-$75MM (n=223) (H) 94EF

14

There is a high level of agreement that employers who offer financial wellness programs really care about their employees

58%

44%

41%

32%

12%

6%

33%

44%

43%

37%

30%

13%

8%

10%

14%

21%

28%

18%

2%

2%

9%

20%

34%

9%

30%

Employers who offer Financial Wellness

Programs really care about their employees

Financial Wellness Programs are a great way

to support employees at a minimal cost to

employers

Employers who offer Financial Wellness

Programs are on the cutting edge of benefits

offerings

Employers must offer Financial Wellness

Programs to be competitive in hiring and

retaining employees

Employees do not want their employers

involved in their finances

Employees do not want Financial Wellness

Programs

Strongly agree Somewhat agree Neither agree not disagree Somewhat disagree Strongly disagree

Most also agree these programs are a great way to support employees at a minimal cost and that those who offer them are on the cutting edge. Plan sponsors are most likely to disagree with the statement that employees do not want financial wellness programs.

Statements about Financial Wellness

Please indicate your level of agreement with each of the following statements. Total (n=863)

Net:

Agree

90%

88%

84%

69%

43%

19%

15

A majority of plan sponsors view financial wellness programs as being more than just offering retirement plans and benefits

47%

17%

11%

10%

9%

7%

A program that addresses an employee's full financial

picture

A combination of retirement plan, insurance, and

education benefits

A retirement plan combined with optional one-on-one

financial advising

Making retirement plan and insurance benefits available

A retirement plan coupled with education and optional

one-on-one advising

A combination of retirement plan benefits and related

education

Nearly half think these programs should be addressing an employee’s full financial situation, and others define these programs as including educational or advising components.

Financial Wellness Program Description

Which of the following best describes a Financial Wellness Program that would be offered to employees at work? Total (n=863)

16

Retirement savings vehicles are a critical part of financial wellness programs, along with online tools for planning

90%

86%

86%

82%

77%

76%

75%

74%

71%

60%

8%

10%

11%

15%

16%

17%

19%

20%

19%

31%

2%

4%

2%

3%

7%

6%

6%

6%

10%

9%

Retirement savings vehicles (401k/403b, IRAs, Annuities, etc.)

Online financial planning tools (in addition to retirement planning)

Online retirement planning tools

Insurance products (disability, life, supplemental medical, etc.)

One-on-one meetings with a financial advisor to look at their whole

financial picture

One-on-one meetings with a financial advisor for retirement planning

Group meetings and webinars for retirement planning

Group meetings and webinars for complete financial planning (in

addition to retirement planning)

Automated retirement savings plan, where investments are increased

or adjusted as employees age

Student loan relief programs

Yes, part of Financial Wellness Program No, not part of Financial Wellness Program Not sure

Student loan relief programs are least likely to be viewed as being a part of a Financial Wellness Program offered to employees at work.

Financial Wellness Program Offerings

Which of the following do you think should be part of a Financial Wellness Program offered to employees at work? Total (n=863)

17

Among those who said there are additional component(s) which should be included, retirement and debt programs were most frequently mentioned

Most of the responses point to a need for a comprehensive program that offers assistance to employees outside of the traditional workplace offerings.

Other Components that Should be

Included in Financial Wellness

Programs?

Are there any other components you think should be included in a Financial Wellness Program offered to employees at work? Total (n=863)

Please describe the other components or topics that should be included in a Financial Wellness Program. If say there are missing financial wellness

components (n=133)

*Nothing, Not sure, and Refused responses not included.

Yes, 15%

No, 85%

Financial Wellness Offerings Mentioned*

11% Retirement/401k match/auto-enroll

10% Credit/debt counseling/help

9% Focus on medical costs

8% Help for childcare/elder care

7% Benefits/Insurance

7% Training and education

6% Real estate

4% Suited to employee demands/personalized

4% Estate planning

4% Budget planning

3% Savings

3% Extra pay/increase

3% Mental health support

3% Investments

2% Whole family support

2% Identity theft

1% Planning/Advising

1% Loan forgiveness/loans

<0.5% Education planning

22% Other

Financial Wellness Program Experts and Providers

19

While retirement plan advisors are not the top of mind “best” source of financial wellness programs, most agree they are a good source of information

66%

51%

45%

34%

23%

Financial advisor

Retirement plan advisor

Benefits broker or

consultant

Professional orgs like SHRM

or others for HR/Benefits

Insurance carrier, like

disability or life insurance

Those who work with a plan advisor are more likely to say a retirement plan advisor or financial advisor are the “best’ source of information.

Financial Wellness Programs:

Experts and Providers*

If you were looking for advice on Financial Wellness Programs, who would be best suited to ask about the topic? Select all that apply. Total (n=863)

Do you think your retirement plan provider is a good resource for information about Financial Wellness Programs? If did not choose retirement plan

advisor as best suited for advice on Financial Wellness Programs (n=400)

*Other responses not included. AB indicates result is significantly higher than the group specified at the 95% level of confidence.

Yes, 74%

No, 10%

Not sure,

15%

Good Resource for Financial Wellness

Programs: Retirement Plan Provider(Among those who did not choose retirement plan

advisor as an expert best suited to ask for advice)

Yes Plan Advisor

(n=155)

(A)

No Plan Advisor

(n=708)

(B)

Financial Advisor 78%B 64%

Retirement Plan Advisor 71%B 47%

20

Eight in ten say a company like MassMutual, with a mix of products, is “best” suited to offer financial wellness programs, primarily due to how well-rounded they are

Company Best Suited to Offer a

Financial Wellness Program

If all other factors are the same, including price and offering, which of the companies described below is best suited to offer a Financial Wellness

Program? Total (n=863)

Please tell us why you believe [insert company type] would be best suited to offer a Financial Wellness Program, and not the others listed. Please be as

detailed as possible. Total (n=863)

*Don’t know and not applicable/refused responses not included.

80%

8%

8%

4%

A company that offers

insurance products, retirement

products, and investment

products


retirement products


investment products


insurance products

Reason for Company Chosen*

34%Well-rounded/Addresses multiple area of financial wellness not just one

26% More Expertise/experience/knowledgeable

16% Offers more options/Flexible

12% Offers the best advice/education

11% One stop-shop/single point of contact/ease of use

7% Best suited (in general)

3% Cost-efficient

3%Retirement should be the priority; will help engage employees

2% Insurance should be the priority; it is too important

1%Investments should be the priority; key to Financial Wellness

1% Not well-suited

6% Other

Companies with $1MM-<$5MM in plan assets are more likely than other asset groups to say these well -rounded companies are the best choice, with 82% making that selection, compared to 74% of other asset size groups.

21

Nearly all plan sponsors find providers who offer financial wellness programs more appealing than those who do not

Appeal of Provider Offering a Financial Wellness Program

If a provider (Retirement Plan Provider, Broker, Carrier, etc.) offers Financial Wellness Programs, does this make them more appealing than their

competitors that do not? Total (n=863)

59%

35%

4%

1%

Yes, it makes them much more appealing

Yes, it makes them somewhat more appealing

No, it does not have any impact

Not sure

Net Yes: 94%

22

Nearly three-quarters find the concept of having a single provider for all non-medical benefits appealing

Appeal increases as plan asset level increases.

How appealing is the idea of having a single provider for all non-medical benefits? Total (n=863)

ABCD indicates result is significantly higher than the group specified at the 95% level of confidence.

42%

32%

15%

9%

3%

Extremely appealing

Somewhat appealing

Neither appealing

nor unappealing

Somewhat unappealing

Extremely unappealing

Asset

Level% Appealing

$1-<$5MM

(n=250) (A)72%

$5-<$15MM

(n=212) (B)75

$15-<$25MM

(n=178) (C)82A

$25-<$75MM

(n=223) (D)83AB

Net Appealing: 74%

Appeal of Single Provider for All Non-Medical Benefits

23

Offer/Implementing

(n=611)(A)

Planning/ Interested

(n=217)(B)

Single Carrier - Yes 52%B 34%

Single Point of Contact 58 76A

Nearly half of plan sponsors say they work with a single provider of non-medical benefits, and most see the top appeal of a single provider being one point of contact

65%

63%

59%

56%

55%

49%

42%

Single point of contact

Convenience of single

provider versus many

Easier to communicate

provider info to employees

Easier to pay one bill versus

several

Cost savings

Time savings

Streamlined claims

Plan sponsors who are already offering or implementing financial wellness programs are significantly more likely to work with a single provider.

Those who are planning or interested in implementing find the idea of a single point of contact to be more appealing – a good opportunity to appeal to those who are prospective buyers.

Currently Have a Single Provider

for All Non-Medical Benefits

Do you currently have a single provider for all non-medical benefits? Total (n=863)

Which of the following are/would be advantages of having all your non-medical benefits with a single provider? Select all that apply. Total (n=863)

AB indicates result is significantly higher than the group specified at the 95% level of confidence.

Yes, 46%No, 54%

Advantages of a Single Provider

for All Non-Medical Benefits

Current State of Financial Wellness Programs

25

Offer/Implementing

(n=611)(A)

Planning/ Interested

(n=217)(B)

Work with Plan

Advisor90%B 82%

A majority of plan sponsors work with a plan advisor on their retirement plan, most often a financial advisor or planner

Those who currently offer or are actively implementing a financial wellness program are more likely than those planning to or interested to work with a plan advisor.

Plan sponsors from high asset companies are more likely to work with a benefits broker than some other asset size groups.

Type of Plan Advisor(Among those who work with a plan advisor)

Does your organization work with an independent financial professional, such as a financial advisor or benefits broker, to advise you on your company’s

retirement plan? Total (n=863)

How would you characterize the type of financial professional you work with for your retirement plan? If works with plan advisor (n=763)


Work with a Plan Advisor

38%

22%

19%

12%

9%

A financial advisor or

planner

Benefits broker or

consultant

A retirement plan

advisor

An investment advisor or

stock broker

A TPA or third party

administrator

Asset

Level

% Broker/

Consult.

$1MM-<$5MM

(n=216) (A)21%

$5MM-<$15MM

(n=188) (B)24

$15MM-<$25MM

(n=160) (C)19

$25MM-<$75MM

(n=199) (D)30AC

Yes, 87%

No, 13%

26

Employee needs, relevance, and cost are the top 3 considerations for plan sponsors when evaluating benefits programs

Considerations When Choosing Benefits

When you are making decisions about benefits or programs to offer to employees, what is your most important consideration? What is your second most

important consideration? Total (n=863)

24%

21%

17%

12%

9%

11%

19%

18%

21%

13%

11%

6%

5%

7%

43%

38%

38%

25%

20%

17%

9%

8%

1%

Employee needs

How many employees will use/benefit from the offering

The cost of the benefit

Employee interest

Being competitive with other employers

Investing as much as possible in the most critical/valued

benefits

The company or carrier that offers it

The amount of work to administer the benefit

Other

1st Most Important

Consideration

2nd Most Important

Consideration

27

Plan sponsors have different levels of consideration for cost, investment, and workload based on their asset level

When you are making decisions about benefits or programs to offer to employees, what is your most important consideration? What is your second most

important consideration? Total (n=863)


% First or Second Consideration

Net:

Consideration

TOTAL

(n=863)

$1MM to

<$5MM

(n=250)

(A)

$5MM t0

<$15MM

(n=212)

(B)

$15MM to

<$25MM

(n=178)

(C)

$25MM to

<$75MM

(n=223)

(D)

The cost of the benefit 38% 38% 44%C 33% 35%

Investing as much as possible in the most critical/valued benefits

17% 15 23A 25A 22A

The amount of work to administer the benefit

8% 8 7 13B 8

% First or Second Consideration

Net: Consideration

TOTAL

(n=863)

Currently offers or is

implementing Financial

Wellness Program

(n=611) (A)

Planning to offer or

interested in offering

(n=217) (B)

Investing as much as possible in the most

critical/valued benefits17% 21%B 11%

And those who have already taken steps to put a Financial Wellness Program in place are more focused on making investments in benefits they see as being critical, compared to those who are interested in offering or planning to offer wellness programs.

The smallest asset group is less focused on investing heavily in the most valued benefits, while the $5MM-<$15MM group is more focused on cost than others.

28

Six in ten plan sponsors either offer or are currently implementing financial wellness programs, with another one-third planning or expressing interest in offering

Very few plan sponsors show no interest in offering these programs.

As plan assets increase, so too does prevalence of offering financial wellness initiatives.

Offering Financial Wellness Programs

Which of the statements below best describes your company’s current approach in offering financial wellness initiatives to employees? Total (n=863)


42%

19%

19%

14%

4%

2%

We currently offer financial wellness initiatives

We are actively implementing financial wellness

initiatives

We plan to implement financial wellness initiatives in the

next 1-3 years

We are interested in offering financial wellness initiatives,

but no plans yet

We have no interest in offering financial wellness

initiatives at this time

We are unsure whether we wish to offer financial

wellness initiatives

Asset Level % Offering

$1MM-<$5MM (n=250)

(A)37%

$5MM-<$15MM (n=212)

(B)52A

$15MM-<$25MM (n=178)

(C)60A

$25MM-<$75MM (n=223)

(D)65AB

29

Those who are offering or implementing financial wellness programs are most likely be working with a Financial or Retirement Plan Advisor on the offering

Interestingly, those with plan assets in the $25MM-<$75MM range are more likely than other groups to be working with a benefits broker or consultant, with 26% reporting this.

Financial Wellness Program Provider

(Among those who offer or are implementing financial wellness programs)

Who do you consider to be the primary provider of the financial wellness program you offer/are in the process of implementing? Offers/Implementing

financial wellness program (n=611)

37%

22%

15%

15%

8%

2%

Financial advisor

Retirement plan advisor

Benefits broker or consultant

Professional organizations like SHRM or others for

HR/Benefits

Insurance carrier, like disability or life insurance

Other

30

Retirement savings, insurance, and online retirement planning tools are the top offered components in financial wellness programs

90%

89%

87%

79%

70%

64%

64%

63%

59%

34%

9%

10%

12%

19%

28%

34%

33%

36%

38%

63%

1%

1%

2%

2%

3%

3%

1%

3%

3%




Online financial planning tools (in addition to retirement planning)

Automated retirement savings plan, where investments are

increased or adjusted as employees age


One-on-one meetings with a financial advisor for retirement

planning

One-on-one meetings with a financial advisor to look at their

whole financial picture

Group meetings and webinars for complete financial planning (in

addition to retirement planning)


Included Not included Not sure

Plan sponsors report offering an average of 7 of these components in their program, with no variation by subgroup.

Student loan relief programs are the least likely to be included of all listed components, though companies who report the majority of their employees are millennials are more likely to offer this, with 40% offering.

Financial Wellness Program Offerings(Among those who offer a financial wellness program)

Which of the following are included in the Financial Wellness Program offered to your company’s employees? If offers financia l wellness program

(n=454)

31

The majority of those who offer financial wellness programs report they are successful, primarily measuring employee feedback and participation

71%

63%

49%

42%

6%

5%

Employee feedback

Usage/participation

Employee

engagement metrics

Employee retention

Absenteeism

We do not measure

success

Companies with between $15MM and <$25MM in plan assets (89%) and $25 to <$75MM (86%) are more likely than $1MM to <$5MM (74%) to say their programs have been successful.

Success of Financial Wellness Program(Among those who offer a financial wellness program)

How successful has your company’s Financial Wellness Program been? If offers financial wellness program (n=454)

How do you measure the success of your companies Financial Wellness Program? If offers financial wellness program (n=454)

Methods for Measuring Success(Among those who offer a financial wellness program)

31%

47%

6%

8%

6% 2%

Extremely

successful

Somewhat

successful

Neither

Somewhat

unsuccessful

Extremely

unsuccessful

It has not been

long enough

78% say their financial

wellness program

is extremely/very

successful

32

Retirement savings vehicles are the most successful component of financial wellness programs by far

34%

14%

13%

11%

8%

7%

6%

4%

3%

<0.5%




planning



Online financial planning tools (in addition to retirement

planning)

Group meetings and webinars for complete financial planning

(in addition to retirement planning)






Results are similar across all plan asset categories and other subgroups.

Most Successful Financial Wellness Program Offerings(Among those who offer a financial wellness program)

Of the programs included in your company’s Financial Wellness Program, which has been the most successful? If offers financial wellness program

(n=453)

33

Online tools are the least successful financial wellness program components, followed by group meetings and webinars

18%

12%

11%

10%

10%

9%

9%

8%

7%

6%


Online financial planning tools (in addition to retirement

planning)


Group meetings and webinars for complete financial planning

(in addition to retirement planning)


planning








Results are similar across all plan asset categories and subgroups

Least Successful Financial Wellness Program Offerings(Among those who offer a financial wellness program)

Of the programs included in your company’s Financial Wellness Program, which has been the least successful? If offers financial wellness program

(n=453)

34

Monetary incentives and rewards are the preferred way to encourage employee participation

Companies with plan assets in the $25MM-<$75MM range are more likely than other groups to use internal champions to push engagement (13%), while those in the smallest asset group ($1MM-<$5MM) are more likely than others to use communications from upper management (19%).

Methods to Encourage Use of Financial Wellness Program

How do you or might you encourage employees to use your company’s financial wellness initiatives [if you were to offer them]? Please select your

primary approach. Total (n=863)

*Not sure responses not included.

32%

26%

17%

11%

7%

3%

1%

Monetary incentives/financial rewards (e.g., discounts,

small cash bonuses, free credit monitoring)

Communications from HR

Communications from upper management

Peer-to-peer communication

Internal champions (such as local managers)

Non-monetary incentives (e.g., points, badges,

recognition)

Other

35

One-third of companies offering financial wellness programs have experienced challenges, most often low participation or higher costs than anticipated

58%

47%

32%

17%

7%

Low employee

participation

More costly than

expected

Partners/Providers not

delivering as expected

Employees unhappy with

the programs

Other

Two-thirds of those in the $5MM-<$15MM plan asset group report their program has been more costly than expected, higher than other groups.

Experienced Challenges

with Financial Wellness Program(Among those who offer a financial wellness program)

Have you experienced challenges with your company’s Financial Wellness Program? If offers financial wellness program (n=454)

What types of challenges have you experienced with your program? Select all that apply. If experienced challenges and offers financial wellness

program (n=148)

Yes, 34%

No, 66%

Types of Challenges Experienced(Among those who experienced challenges with their

Financial Wellness Program)

36

Companies most often offer these programs because they help their employees, raise employee morale, and make them feel good about giving employees support

There are no differences in results for asset class.

Reasons Companies Do Offer Financial Wellness Program(Among those who offer or plan to offer a financial wellness program)

Which of the following are reasons for your company offering a Financial Wellness Program to employees? Select all that apply. If offer, implementing or

plans to offer financial wellness program (n=739)

61%

58%

55%

53%

50%

49%

40%

38%

1%

Helping employees address issues they are facing

Employee engagement/morale

I feel good that our employees get this support

Employee attraction and retention

Improves employee use of existing benefits

Improves employee productivity

We need to offer this to be competitive for hiring

Something we can add for low/no cost to our current

offerings

Other

37

Among those who do not offer these programs, the top reasons are lack of knowledge about them or cost

Reasons Companies Do Not Offer Financial Wellness Program(Among those who do not offer or intend to offer a financial wellness program)

Which of the following reasons describe why your company is not planning to implement a Financial Wellness Program for employees in the immediate

future? If does not offer or intend to offer financial wellness program (n=107)

48%

41%

31%

20%

19%

14%

<0.5%

6%

Do not know enough about these programs

Cost

We offer enough benefits to be competitive now

Employees do not want us to be involved in their

finances

Employees are not interested

Too much work

They are not useful programs

Other

Half of companies with assets of $1MM-<$5MM who do not offer programs do not do so because they do not know enough about them – the highest of all asset groups.

38

The top components of financial wellness programs are not always the most successful, particularly for online tools

Financial Wellness Programs: Overview

Which of the following do you think should be part of a Financial Wellness Program offered to employees at work? Total (n=863)

Which of the following are included in the Financial Wellness Program offered to your company’s employees? If offers financia l wellness program

(n=454)

Of the programs included in your company’s Financial Wellness Program, which has been the most/least successful? If offers financial wellness program

(n=453)

Items in a Financial Wellness Program

Yes, Part of Fin

Wellness

(Total, n=863)

Yes, Included

(Offer, n=454)

Most

Successful

(Offer, n=453)

Least

Successful

(Offer, n=453)

Retirement savings vehicles (401k/403b, IRAs, Annuities, etc.) 90% 90% 34% 6%

Online financial planning tools (including debt, budgeting, savings, in

addition to retirement planning)86 79 8 12

Online retirement planning tools 86 87 3 18

Insurance Products (Disability, Life, Supplemental Medical, etc.) 82 89 14 9

One-on-one meetings with a financial advisor to look at their whole financial

picture77 63 11 9

One-on-one meetings with a financial advisor for retirement planning 76 64 13 10

Group Meetings and Webinars for retirement planning 75 64 6 11

Group meetings and webinars for complete financial planning (including

debt, budgeting, savings, in addition to retirement planning)74 59 7 10

Automated retirement savings plans, where investments are increased or

adjusted as employees age71 70 4 7

Student loan relief programs 60 34 <0.5 8

Perceptions of Employee Financial Wellness

40

Plan sponsors are most concerned about their employees being prepared for retirement and medical costs

25%

28%

23%

23%

24%

16%

12%

12%

42%

36%

39%

37%

34%

31%

31%

23%

23%

25%

22%

28%

28%

32%

32%

32%

7%

8%

10%

8%

10%

14%

18%

19%

3%

6%

4%

3%

7%

7%

14%

Their financial readiness for retirement

Employees being prepared for medical

costs

Participation in your company's

retirement plan

Their overall financial situation

Their ability to handle emergency

expenses

Costs of childcare

Credit card and other consumer debt

Employee student loan debt

Extremely concerned - 5 4 3 2 Not at all concerned - 1

Childcare costs, consumer debt, and student loan debt are the areas where plan sponsors express the least amount of concern.

Concern about Employee Financial Struggles

Thinking about the employees who work for your company, how concerned are you about the following? Total (n=863)

Net:

Concerned

67%

64%

62%

60%

58%

47%

43%

35%

41

Some interesting differences in concerns about employees emerge among subgroups

Plan sponsors with plan assets between $15MM to <$25MM are more concerned about some topics than other groups, particularly the $1MM to <$5MM asset group.

Concern about Employee Financial Struggles

Thinking about the employees who work for your company, how concerned are you about the following? Total (n=863)

ABCD indicates result is significantly higher than the group specified at the 95% level of confidence or greater.

% Concerned(4/5 on 5 point scale where 5 =

Extremely Concerned)

Net: Concern

TOTAL

(n=863)

$1MM to

<$5MM

(n=250)

(A)

$5MM t0

<$15MM

(n=212)

(B)

$15MM to

<$25MM

(n=178)

(C)

$25MM to

<$75MM

(n=223)

(D)

Employees being prepared for medical costs

64% 63% 63% 74%AB 67%

Credit card and other consumer debt

43 41 44 54A 50A

Employee student loan debt 35 33 39 47A 47A

% Concerned(4/5 on 5 point scale where 5 = Extremely Concerned)

Net: Concern

TOTAL

(n=863)

(A)

Majority of Employees are

Millennials

(n=418)

(B)

Participation in your company's retirement plan 62% 67%A

Costs of childcare 47 51A

Employee student loan debt 35 40A

And plan sponsors who have a majority of Millennial employees are more focused on retirement plan participation, childcare costs, and student loan debt than the average company.

42

Eight in ten plan sponsors believe their employees are struggling financially

5%

44%

36%

13%

2%

Total

50 to 74%+

25 to 49%+

Less than 25%

Not sure

Just over half think that more than a quarter of their employees are struggling, with that belief being lowest among the companies with the smallest asset category.

Percent Employees Struggling Financially(Among those who believe their employees struggle)

Do you think at least some of your employees are struggling financially? Total (n=863)

Approximately, what percentage of your employees do you think are struggling? Your best estimate is OK. If think employees struggle financially (n=728)


Yes, 79%

No, 10%

Not sure, 11%

Are Employees Struggling Financially?

Asset Level % YES

$1MM-<$5MM (n=250) (A) 76%

$5MM-<$15MM (n=212) (B) 87A

$15MM-<$25MM (n=178) (C) 87A

$25MM-<$75MM (n=223) (D) 89A

75%+

43

Among those who believe their employees are struggling, most believe so due to hearing them talk about it, retirement plan participation, or second jobs

Reasons Plan Sponsors Think Employees Struggle Financially(Among those who believe their employees struggle)

What makes you believe your employees are struggling financially? Select all that apply. If think employees struggle financially (n=728)

53%

46%

46%

44%

42%

33%

4%

You/their managers hear them talking with coworkers

about their struggles

They are not participating in your retirement plans as

much as you would like to see

They are taking on second jobs

They are taking loans from their retirement plans

They tell you/their managers they are struggling financially

They ask for paycheck advances

Other

44

Plan sponsors in the largest asset class cite some evidence of employee struggles more than those in the smaller asset groups

Reasons Plan Sponsors Think Employees Struggle Financially(Among those who believe their employees struggle)

What makes you believe your employees are struggling financially? Select all that apply. If think employees struggle financially (n=728)


$1MM - <$5MM(n=190)

(A)

$5MM - <$15MM(n=184)

(B)

$15MM - <$25MM(n=155)

(C)

$25MM - $75MM(n=199)

(D)

They are not participating in your retirement plans as much as you would like to see

44% 52% 49% 55%A

They are taking loans from their retirement plans

42 46 52 58AB

They tell you/their managers they are struggling financially

42 38 46 49B

45

Credit card and other consumer debt, housing costs, inability to save are the top ways plan sponsors think their employees are struggling

Plan sponsors with assets in the $15MM to less than $25MM range are most likely to say they think their employees are struggling with childcare costs.

Ways Plan Sponsors See Employees Struggle Financially*(Among those who believe their employees struggle)

In what ways(s) are your employees struggling financially? Select all that apply. If think employees struggle financially (n=728)

*Not sure responses not included.


61%

58%

52%

50%

49%

49%

37%

27%

1%

Credit card or other consumer debt

Housing costs

Unable to save for emergencies

Medical costs

Childcare costs

Unable to save for retirement

Student loan debt

Insurance costs

Other

Asset Level% Childcare

Costs

$1MM-<$5MM

(n=190) (A)48%

$5MM-<$15MM

(n=184) (B)51

$15MM-<$25MM

(n=155) (C)59A

$25MM-$<75MM

(n=199) (D)49

46

Seven in ten plan sponsors believe their employees face issues not addressed by their current benefits offering

The top unaddressed concern is overall financial stability/cost of living, followed by debt and difficulty saving.

Do Employees Face Financial Issues

Not Addressed by Current Benefit

Offerings?

Do you believe your employees face financial issues and stressors that are not addressed by your current benefits offerings? Total (n=863)

What issues do they face? If think employees face unaddressed issues (n=614)

*Nothing, Don’t know, and Refused responses not included.

Yes, 71%

No, 29%

Unaddressed Issues Employees Face*(Among those who believe their employees face unaddressed

issues)

28%Cost of living/Housing/Financial stability/paycheck to paycheck

17% Debt

16%Not saving/planning for retirement or emergencies

15% Child/Elder Care

11% Medical issues/costs

10% Budgeting/Managing Money/Spending

10% Student loans

6% Family problems/stress/mental health

5% Low wages/Not enough pay

4% Lack of insurance/benefits cost

1% World/Political challenges

1% Commute

12% Other

47

Nearly six in ten plan sponsors believe employees look to their employers for support to manage their finances

Plan Sponsors in the largest asset class are more likely than those in the smallest to agree employees are looking to their employers for help.

Do Employees Look to Employer for Financial Wellness?

Are your employees looking to you, the employer, for support or education to help manager their finances? Total (n=863)


Yes, 57%No, 26%

Not sure, 17%

Asset Level % YES

$1MM-<$5MM

(n=250) (A)56%

$5MM-<$15MM

(n=212) (B)58

$15MM-<$25MM

(n=178) (C)63

$25MM-<$75MM

(n=223) (D)65A

MapMyFinances

49

Nearly six in ten plan sponsors want to offer MapMyFinances to their employees and believe it would be a useful tool

32%

32%

36%

32%

29%

27%

26%

25%

21%

24%

26%

25%

58%

58%

57%

56%

55%

53%

I would like to offer this tool to my

company's employees

This tool would be very useful for my

company's employees

I would be interested to use this tool

myself

This tool would help employees become

engaged with a Financial Wellness

Program

This tool would address the needs of

mycompany's employees

My company's employees would be

interested in this tool

Strongly agree - 5 4

Agreement with Statements about MapMyFinances Description

Please rate your level of agreement with each of the following statements. Total (n=863)

This tool is an online

planning tool for

employees, who would go

into it and enter

information about their

financial situation –

including income, expenses, debt, retirement

savings, and insurance.

They would also input their

financial goals. The tool

then would take this

information about

individual employees, and

would help them prioritize

their goals, while giving

them simple, concrete

steps to take to get them

closer to reaching those

goals.

50

Plan sponsors in the highest asset class show the most interest in MapMyFinances, particularly compared to the smallest asset class

Statements about Map My Finances Description

Please rate your level of agreement with each of the following statements. Total (n=863)


Statements about

MapMyFinances Description

Net: Agree

TOTAL

(n=863)

$1MM to

<$5MM

(n=250)

(A)

$5MM t0

<$15MM

(n=212)

(B)

$15MM to

<$25MM

(n=178)

(C)

$25MM to

<$75MM

(n=223)

(D)

I would like to offer this tool to

my company's employees58% 57% 61% 63% 67%A

This tool would be very useful

for my company's employees58 56 61 64 65

I would be interested to use this

tool myself57 56 58 62 66A

This tool would help employees

become engaged with a

Financial Wellness Program

56 54 62 62 65A

This tool would address the

needs of my company’s

employees

55 53 57 62 67AB

My company's employees

would be interested in this tool53 51 56 62A 65AB

51

The comprehensive nature of the MapMyFinances tool is most appealing to Plan Sponsors, while privacy and data security are the biggest concerns

66%

62%

58%

57%

53%

51%

36%

Considers employees’ income,

expenses, debt, etc.

Gives them simple steps to reach

their goals

Self-service

Online

Individualized recommendations

Can be done outside work hours

Does not require meeting with

anyone

There are no differences of note in responses among various subgroups.

Concerns about MapMyFinances

Which of the features of this online tool are appealing to you? Select all that apply. Total (n=863)

Which of the following concerns, if any, do you have about this type of online tool? Select all that apply. Total (n=863)

Appeal of MapMyFinances

43%

34%

34%

34%

30%

17%

16%

13%

Privacy and security of the data

employees put into it

It might be too complex for some

employees to use

Lack of human interaction in

case of questions or problems

It could be a sales tool

Employees will not use it

It could give bad advice

Employees may not have

internet access

I have no concerns

52

Most plan sponsors believe nothing is missing from MapMyFinances, but among the few who do, a connection to a live person is the top item

Anything Missing from

MapMyFinances?

Is there anything missing from this tool, that you would like to see included? Total (n=863)

What is missing from this tool? If thinks something is missing from tool (n=82)

*Don’t know and Refused responses not included.

Yes, 9%No, 91%

Missing Items from MapMyFinances*(Among those who believe something is missing)

29% Live chat/Person to talk to/Meetings

11% Additional tools/topics

9% Information Security

7% Instructions/training on how to use/must be simple

4% Automatic file feed/Integration

4% Customization/Personalization

4% Already exists

3% Financial Advising/Planning

3%Incentive/Follow up/check in to keep them engaged

1% Loans/earnings

<0.5% Debt Reduction

<0.5% Technology

13% Nothing

12% Other

Profile of Respondents

54


Total

(n=863)

Total

(n=863)

Type of Company Benefits Offered (% Yes)

A for-profit company 88% Retirement plan 100%

A not-for-profit organization 12 Health insurance 96

Number of Benefits-Eligible Employees Life insurance 81

Less than 10 employees 3% Defined Benefit plan 47

10 to 24 employees 11 Other Benefits Offered

25 to 49 employees 9 Dental insurance 85%

50 to 99 employees 13 Vision insurance 81

100 to 149 employees 11 Short-term disability insurance 60

150 to 199 employees 8 Long-term disability insurance 58

200 to 249 employees 5 Wellness programs 46

250 to 999 employees 23 Accident insurance 43

1,000 to 2,499 employees 10 An EAP (Employee Assistance Program) 38

2,500 to 4,999 employees 4 Critical illness insurance 27

5,000 or more employees 4 Retiree health insurance 21

Age Bracket of Employees Long-term care insurance 18

Under 40 (Millennials) 54% Cancer insurance 15

40 to 54 (Gen X) 42

55+ (Baby Boomers 5

55


Total

(n=863)

Total

(n=863)

Retirement Plan Assets Industry

$1MM to <$5MM 75% Professional and Business Services 19%

$5MM to <$15MM 11 Health Care/Social Assistance 13

$15MM to <$25MM 10 Construction 12

$25MM to <$5MM 4 Manufacturing 11

Years Retirement Plan Existed Financial 11

1 to 4 years 28% Information 7

5 to 9 years 37 Leisure/Hospitality 5

10 years or longer 35 Educational Services 3

Work with Plan Advisor Trade, Transportation & Utilities 3

Yes 87% Agriculture/Natural Resources/Mining <0.5

No 13 Other 15

Type of Plan Advisor (if work with a plan advisor) (n=763)

A financial advisor or planner 38%

Benefits broker or consultant 22

A retirement plan advisor 19

An investment advisor or stock broker 12

A TPA or third party administrator 9

Some other type of financial professional <0.5

56


Total

(n=863)

Role in Company

Leadership: Owner, CEO, President, etc. 29%

Operations: COO, Managing Director, VP, etc. 19

Finance/Treasury: CFO, VP, Director, Manager, Specialist, etc. 10

Human Resources/Benefits: VP, Director, Manager, Specialist, etc. 42

Administrative: Office Manager, Assistant, etc. --

Retirement Plan Decision-Maker

You are a final decision-maker or make recommendations 62%

You have a lot of influence 35

Moderate to no influence 2

Financial Wellness Program Decision-Maker

You are a final decision-maker or make recommendations 60%

You have a lot of influence 36

Moderate to no influence 3

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