Financial Wellness Landscape Analysis:An Overview of the Need for

Workplace-Based Financial Wellness Programs

EMPLOYEE BENEFITS

Table ofContents

Executive Summary ..................................................................... 3

The Financial Wellness Landscape............................................... 4American workers living paycheck to paycheck ........................................4Financial literacy and money management ...............................................5Payday loans and their effect on workforce productivity...........................5Credit card debt ........................................................................................6Savings capacity........................................................................................6Retirement savings....................................................................................6

Financial Distress: The Impact on Employers and the Workforce ...................................................................... 7

Financial stress and health ........................................................................7Financial stress as a workplace distraction................................................8Employee turnover effects.........................................................................8A Financial stress and 401(k) participation and loan usage ......................8

Employer Strategies for Improving Financial Wellness............... 9What is financial wellness? .......................................................................9What are the components of workplace-based financial wellness programs? ..................................................................10

How Employers Benefit from Offering Financial Wellness Programs .....................................................................14

How Employees Benefit from Financial Wellness Programs .....................................................................16

Potential Obstacles for Employers .............................................17

Conclusion..................................................................................18

End Notes ...................................................................................19

Financial wellness programs – which may include a variety of innovativeproducts, professional services, and financial education tools – can helpemployers improve their bottom lines by:

Financial wellness programs succeed by offering a range of options thatemployers can choose from to meet the specific needs of their respectiveworkforce. These programs offer tremendous potential for an employer toimprove the financial wellbeing of its employees while benefitting from asubstantial return on investment.

Execut ive Summary | 3

Employers have longsought to both maximize

productivity and maintain astrong and productive

workforce. Employers areincreasingly looking tobenefits packages as a

means to leverage a moreproductive workforce, with

employee wellbeingemerging as a priority.

Executive Summary

reducing absenteeism and sick-time usage

increasing retention and employee loyalty

minimizing 401(k) loan usage

4 4 4

reducing financial-related stress

among employees

Improving productivitythrough reduction in ‘presenteeism’

4 4

4 | The F inancia l Wel lness Landscape

The Financial Wellness Landscape

Americans need ways tohelp them increase their

financial stability andsecurity. This challenge isnot limited to the lower

thresholds of income.Workers at all incomelevels struggle in their

abilities to manage money,make investment

decisions, improve theircredit, and build assets.

American workers living paycheck to paycheckAmericans are struggling to save across income levels. A recent survey foundthat approximately two-thirds of American workers were living paycheck topaycheck in 2012.2

Additionally, according to a 2013 study, approximately 43.9% of Americanhouseholds are liquid asset poor – they do not have the savings to be able tosustain their most basic expenses for a period of three months in the case of aloss of income.3 Families who are liquid asset poor lack the necessary resourcesto weather a financial emergency or manage unexpected expenses such asillness or car repairs. As a result, consumers may accumulate credit card debt, orturn to high-cost and often predatory financial services such as payday loans.

Did You Know?

Less than half of low and moderate income

families have emergency savings of at least $500.1

$$$

35%

30%

25%

20%

15%

10%

5%

0%

21-34years

35-44years

45-54years

55-64years

65+years

33% 33%31%29%

23%

Percentage of employeeswho have already used

money in retirement plansfor expenses other than

retirement – shown by age

–

–

–

–

–

–

–

–

Source: PWC Employee Financial Wellness Survey 2012 Results

The F inancia l Wel lness Landscape | 5

Financial literacy and money managementAmericans also lack confidence in their ability to manage personal finances overall.The 2012 Consumer Financial Literacy Survey found that 80% of Americans believethat they could benefit from information and advice from a professional abouteveryday financial questions.4 More than half of Americans do not have a regularbudget, including 22% of consumers who report that they do not have a goodidea of how they are spending their money.5

Poor money management knowledge and habits also impact consumers’ long-termstability. Those with lower levels of financial literacy are less likely to save forretirement, or to be able to make informed decisions about long-term investments.6

Payday loans and their effect on workforce productivity Payday loans, which can send participant consumers spiraling into financial distress,are used by 12 million Americans each year, at all income levels, but primarily bythose in lower income brackets.7 The median annual income of a payday loanborrower has been estimated to be as low as $20,000 and as high as $50,000.8

Payday loan users are often indebted for more than half of each year in which theyborrow, with an average of nine transactions at annual interest rates surpassing400%.9 In addition, payday lending has been shown to contribute to the loss ofbank accounts, increased bankruptcy filings, financial hardship, and credit carddelinquency.10 Ultimately, payday loans have the potential to create and contributeto financial crises among the consumers who use them.

Despite these jarring statistics, the strength of the industry indicates that there is aneed in the marketplace for short-term loans that meet consumers’ need forproducts that are easy and quick to access.11 According to the FDIC 2011 NationalSurvey of Unbanked and Underbanked Households, consumers, even those whoare banked, use payday and pawn shop loans because it is easy to becomeapproved for this type of credit. About twenty percent of households surveyed alsoreported using these types of credit because they did not perceive that small-dollarpersonal credit was offered by their bank or credit union.12

States across the nation are adopting stronger policies to curb predatory lending.Currently, 19 states have capped the maximum APR on short-term consumer loansat 36% or lower.13 However, many states are still without consumer protections,while states that do have regulations have seen a rise in online businesses offeringsimilar products. In response, many banks, credit unions, nonprofit organizationsand socially responsible businesses across the country have been working towardscreating better and more affordable alternatives to payday lending to meetconsumer demand.

6 | The F inancia l Wel lness Landscape

Credit card debtThe average credit card balance among households that carry credit card debt is$7,100.14 High debt loads and an inability to repay are contributing to decliningcredit ratings; in fact, 56% of American consumers have subprime credit.15 Debthas been shown to have implications on consumers’ mental health including lowerself-esteem, lower productivity and higher levels of stress.16 In addition to theimpact that debt has on consumers’ mental health, low credit ratings arepreventing households from building assets and saving for retirement.

Savings capacity With difficulty managing cash flow – and with high debt loads – Americans arestruggling to save. The realities of liquid asset poverty are preventing workers frommaintaining a safety net for financial emergencies and unexpected expenses or towork towards general savings goals such as for vacations or holidays.

Without the ability to save for short-term purposes, Americans are also havingtrouble building assets by investing in long-term savings goals such as collegeeducation or home ownership. The median net worth in America was $68,948 in2010, a decline of $27,000 since 2006.17

Not only are Americans not saving, but they are not confident in making decisionsabout how to save their money. About half of American working adults, womenmore so than men, report feeling uncomfortable about selecting investments.18

Here again, workers at all income levels struggle with their decisions.

Retirement savingsAmerican workers’ confidence in their ability to retire is at a historical low, withonly 58% reporting that they currently save for this purpose.19 A survey ofhousehold savings and investment activity (excluding their primary home anddefined benefit plans) reveals that 60% of workers report total investments of$25,000 or less, and of those, 30% state they have saved less than $1,000.20

Lack of access to institutional savings mechanisms may be one of the biggest barriersto saving. Empirical evidence suggests that, with the right financial products andservices, even low-income households can save and accumulate assets.21

F inancia l Distress: The Impact on Employers and the Workforce | 7

Financial Distress:The Impact on Employers and the Workforce

The costs of financialdistress extend beyond anemployee’s bank account.Financial challenges andfinancial distress impact a worker’s health, workplace effectiveness,long-term financialstability, and ultimately, an employer’s bottom line.

$11,709

$7,388

$4,395

Suffering

Struggling

Thriving

Annual Health-Related Cost to Employer (Disease Burden and Unhealthy Days)

Source: GALLUPControlling for demographic differences at baseline

Financial stress and healthThere is a strong correlation between a person’s financial and physical health.

Financial stress is significant in the majority of people’s lives: 75% of thosesurveyed named money as their number one source of stress.22 In addition, 1 in4 American workers are seriously financially distressed,23 constituting more than30 million workers who may be absent from or distracted at work as a result.24

In addition to the direct health consequences of high stress levels, stress can alsolead to unhealthy coping behaviors, such as tobacco and alcohol use, anddecreased physical activity that can result in further health problems.25 High levelsof stress related health problems tend to correlate with socio-economic status; inlow-income communities, where people face chronic stressors related to poverty,stress-related health problems and unhealthy coping behavior tend to be high.26, 27

The result? Employees’ rates of sick day usage and absenteeism reflect the cost ofaddressing stressful financial situations or health-related issues. Employers absorb thisimpact through higher costs associated with health care, and managing throughworkers’ absence. They recognize these costs, too. In a recent survey of employers,58% believe that “financial illness” plays a role in employee absenteeism.28

The High Cost of Low WellbeingWhen it com es to reducing health care costs, employee wellbeing has a direct impact on a company’s bottom line. Employees who are thriving in overall wellbeing have 41% lower health-related costs compared with employees who are struggling and 62% lower costs compared with employees who are suffering.

Quick Facts

1 in 4 American workers report that they are seriously financially distressed

4 in 5 American workers report some degree of financial stress

Poor money management and insufficient emergency savings are the leading causes of financial stress

8 | F inancia l Distress: The Impact on Employers and the Workforce

Financial stress as a workplace distractionEmployers not only lose money when employees are absentfrom the workplace; financially distressed workers are morelikely to be distracted by money-related stress while on thejob, either by attending to personal financial business, ordiscussing these issues with coworkers.

The vast majority of workers (97%) admit that they havethought about or managed their personal finances duringwork hours.29 For the most financially distressed employees,this activity can amount to up to 20 hours per month spentnegotiating with creditors, paying bills, and discussingfinancial issues with coworkers.30, 31 In a recent survey ofemployers, 83% said that employee productivity wasimpacted by concerns about financial problems.32

Employee stress and distractedness due to personal financialissues can also be costly to an employer when it results in lossof workplace productivity, employee turnover, workercompensation, and other medical related costs.33 In fact,American companies lose more than 300 billion dollars a yeardue to stressed employees at work.34, 35

Employee turnover effectsIn addition, financially stressed employees may leave their jobsbecause their financial stress gets in the way of their ability toperform their job, or because they are changing jobs often,looking for short-term gains or income boosts in order to dealwith financial issues. The cost of replacing an employee canrange from1.5 and 2.5 times the annual salary of the incumbentworker, with training costs alone adding up to $1,200.36

Financial stress and 401(k)participation and loan usageWithout the resources to address financial emergencies andmanage high debt loads, financially distressed workers mayreduce or discontinue 401(k) contributions, or take 401(k)loans, depleting retirement savings and disturbing thebalance of an employer’s 401(k) portfolio.

Immediately following the recession, the percentage of401(k) loan usage increased. 2009 and 2010 data shows that21% of employees on an eligible plan had an outstandingloan balance, up from 18% in 2008.37 The average ratio ofoutstanding loan to 401(k) balances is 14%.38 These changesin 401(k) contributions and loan usage can affect the balanceof contributions for highly and lower compensatedemployees that are required by nondiscrimination tests.39

Employees who take out 401(k) loans must then manage theburden of additional debt payments, while those whowithdraw funds face high penalties and may compromisetheir long-term financial resiliency.

Employer Strategies for Improving F inancia l Wel lness | 9

Employer Strategiesfor Improving Financial WellnessAs research indicates, financial stress and instability can be costly to organizationsand their employees. However, an organization’s efforts to increase its employees’wellbeing can help to reverse some of those costs. A person with a high level ofwellbeing is likely to have high productivity and as a result is far less costly to anemployer.40 Whereas an employee with self-reported low wellbeing can cost anemployer as much as $28,800 in lost productivity annually through sick day usagealone, employees who have high levels of wellbeing may cost an employer aslittle as $840 per year in lost productivity.41

In response to this information, more employers are turning to financialwellness programs that, like traditional physical wellness programs, place anemphasis not only on the treatment of stressors and difficulties, but also onprevention and behavior change.

What is financial wellness?Just as financial stress impacts people at all income levels, financial wellness canbe a characteristic found across the income spectrum.42 More than incomegeneration alone, financial wellness or wellbeing encompasses a variety offactors affecting an individual’s financial health, such as financial capabilitylevels and behavior, financial status and stressors, and personal characteristics.Some of the factors that determine an individual’s financial wellness may befixed, while others such as financial capability levels and behavior offeropportunities for change, and ultimately improvement in an individual’sfinancial and overall wellbeing.

Financial wellbeing involves deploying successful money management strategiesto spend money wisely, and create financial security. This is critical to reduceday-to-day stress and anxiety and ensure a degree of both short- and long-termeconomic freedom to achieve a desired standard of living.43

Financial wellbeing is not isolated from other elements of one’s life – rather, it isinterconnected to more holistic wellbeing, along with physical, social, career,and community satisfaction.44

What we found was

that financial security –

the perception that you

have more than enough

money to do what you

want to do – has three

times the impact of your

income alone on overall

wellbeing. Further, a lack

of worry about money

has more than double

the impact of income on

overall wellbeing.

– Tom Rath and Jim Harter,authors of "Wellbeing: TheFive Essential Elements"

10 | Employer Strategies for Improving F inancia l Wel lness

What are the components of workplace-based financial wellness programs?

Today, employers can choose from newly emergingfinancial wellness programs to offer their employees abenefit that goes beyond financial education trainingand retirement packages. These programs aredesigned to address the complex factors that make upan individual's financial wellness, including short-terminterventions to reduce the stresses of daily living aswell as long-term planning to ensure financial security.In addition to offering comprehensive financialsupport, financial wellness programs must also bedesigned so that they are easily accessible by users,generate high levels of initial enrollment, andmaximize ongoing levels of engagement.

In general, employees are less interested in generalfinancial education and more interested inparticipating in specific and relevant topics of interestto their situation – including debt management,retirement, and investment planning.45

Customized/Personalized to address differentemployee’s financial concerns based on factors such asfinancial knowledge, financial situation, income, anddebt-load. For example, a financial wellness programmay offer access to Personal Financial Managementtools (discussed further below) that provide customizedadvice and timely content derived from an analysis of anemployee’s specific financial situation. This personalizedapproach to financial wellness seeks to increase interestand continued participation from employees as contentand tools that are delivered are relevant to an individual’spersonal financial situation.

Self-directed so that an employee may engage withthe program as much or as little as needed in waysrelevant to his or her immediate financial concerns.Employer-provided financial wellness programs that offerself-directed approaches to financial learning have beenshown to improve employees’ financial managementbehaviors, and increase financial and career satisfaction.46

Responsive to changing financial situations, includingplanned and unplanned financial events. A successfulfinancial wellness program will take into account thediverse range of employee needs for services, and thefact that those needs will change over time. Forexample, a financial wellness program may offer short-term loans for employees who encounter a financialemergency, and investment counseling when that sameemployee is ready to begin contributing to a retirementaccount. Comprehensive and responsive services willimpact the ability of the program to affect anemployee’s financial wellbeing holistically, while alsocontributing to long-term use of the program.

Components of successful workplace-based financial wellness programs include:

Employer Strategies for Improving F inancia l Wel lnesss | 11

Focused on risk assessment, anticipating andpreventing financial emergencies, rather thanresponding exclusively to those that already exist.Financial wellness programs use risk assessment toolssuch as initial assessments, credit monitoring andtailored financial advice in order to increaseparticipants’ financial security and financial resiliencywhen faced with a crisis. In doing so, employees arebetter equipped in the case that a financial emergencydoes arise, and may be able to do so with little impacton their job performance and/or absenteeism.

Providing access to institutional mechanismsthat promote positive financial behavior, such asaccess to bank accounts, goal-setting tools,responsible credit, and investment opportunities.Financial wellness programs may often serve as abridge to traditional financial services, especially forunderserved households, by eliminating barriers andproviding the information and access that employeesneed in order to increase their financial capability.Improving employee’s access to quality financialservices including credit and savings can reduce stressand overall financial stability by helping employeescreate safety nets and avoid more predatory, high-cost services.

Easily accessible to maximize engagement andcontinued use by leveraging organizationalinfrastructure, innovative technology, and integratingwith other wellness programs. For example, afinancial wellness program may be integrated withthe same online database that an employee alreadyuses regularly to manage other employer benefitsand programs.

Ongoing by incorporating strategies that encourageregular participation and help employees build upontheir financial wellness over time. For example,financial wellness programs may incorporateopportunities for participants to set goals and trackthem over time as a way of maintaining long-termengagement and consistent reminders of the servicesthat the program offers.

Dynamic by offering financial tools, relevant andtimely communication of financial information, andtwo-way channels for employees to be able to accesspersonalized information and expert advice. Asopposed to merely providing static content onfinancial topics, financial wellness programs createopportunities for employees to interact with contentand apply their financial knowledge to their ownlives. For example, financial wellness programs mayoffer employees the opportunity to review their creditreports or consult with a financial advisor.

12 | Employer Strategies for Improving F inancia l Wel lness

Many other factors will also contribute to the success of a customized financial wellness program, including therelationship and trust between an employer and its workforce, the strength, capacity and reputation of the financialwellness program and its ability to meet the needs of a diverse workforce.

The success of a financial wellness program will depend in part on its ability to provideappropriate, dynamic and accessible delivery channels, but also on the quality of contentand delivery of individual program components, which may include:

Benefits and retirement counseling. While it isstandard, and required, for employers to offer basicfinancial education associated with retirement plans, afinancial wellness program may go beyond theserequirements and include a more pro-active and targeted approach to delivering this type of financialeducation. Activities may include one-on-one personalbudgeting to help employees begin to save forretirement or to help employees improve deferral rates.Web based tools including video chat and webinars canoffer wholesale counseling to educate and advise theworkforce on the voluntary and employer-sponsoredbenefits available to them—so that each employee canmake informed benefit decisions throughout the year.

Personal financial management tools (PFMs). PFMs arebecoming increasingly prevalent as components ofemployers’ financial wellness programs. These online toolsprovide money management features, financial education,and personalized advice. Users can often link bank, creditcard, investment, and other accounts to construct a real-time picture of their personal finances. They can use thisinformation in order to make better financial decisions,track progress, and receive information and customizedrecommendations. Some PFMs offer incentives for positivesavings behavior, and link to social networking sites in orderto harness the power of social pressure to help individualsmeet their financial goals. PFM providers are increasinglypartnering with employers and workplace financialwellness programs in order to provide customized toolsthat align with an employee’s financial wellness objectives.

Financial education, counseling andplanning across income levels. Traditionalfinancial education often entails seminars andworkshops, as well as one-on-one opportunitiesto work with a financial coach, credit counselor,or financial planner. Today, financial wellnessprograms may include these elements, with themajor difference being that participants mayhave more opportunities to engage on their ownterms. Seminars may be offered via pre-recordedwebinars that participants can watch at theirconvenience, or financial coaches may be able tomeet with them through email exchanges, virtualchats, and web-based meetings.

Participants can receive recommendations forservices that are most relevant to them. Forexample, after participating in a financial wellnessassessment or quiz, a participant may be promptedto begin with financial coaching to work on abudget plan, or to speak with a financial plannerabout investment options, depending on his or herparticular needs. In combination with appropriateproducts and services offered through a financialwellness program, effective financial education hasbeen shown to improve consumers’ credit scores,increase savings rates and participation in 401(k)plans, and better prepare consumers for assetbuilding opportunities such as homeownership.47, 48

Employer Strategies for Improving F inancia l Wel lness | 13

Credit report and identity theft monitoring. In2012, the majority of American consumers reported thatthey did not review their credit score or credit report.49

Yet when this data is paired with financial education andcredit building opportunities, it can be an importantcomponent of financial wellness, and building assets.Offering monitoring of credit scores and reports isanother way that workplace-based financial wellnessprograms are merging quality education with timely andrelevant financial products. Employees can receive amonthly credit report that reflects their credit standing,and provides insight into what actions they can take toimprove it. Some employers also offer additional identitytheft monitoring and protection products.

Employer-based lending programs. Some employersrecognize their workforce’s dependence on high interestpayday and other predatory financial services, as well as theadministrative costs of making internal payroll advances. Inresponse, they may choose to partner with third partybanks and credit unions to offer affordable short-termcredit to employees to help alleviate financial stress,especially when unforeseen events may threaten anindividual’s job security. Employer-based lending programshave the potential to be highly sustainable and streamlinedby leveraging an employer’s existing infrastructure.

These programs are appealing to employees, too,as they often combine online platforms, quickprocessing, and auto-deduction of payments frompayroll, ultimately offering the ease andconvenience that workers typically seek for shortterm borrowing. Furthermore, employer-basedlending programs, which often involve partnershipwith a traditional financial institution, canleverage the reputation of a known lender, andhelp employees build relationships with localbanks and credit unions.50 While workplace-basedlending programs are often marketed as short-term emergency products, they can also link withcredit building, savings components, and othermechanisms that are designed to heightenemployee engagement with multiple elements ofthe financial wellness program.

14 | How Employers Benef i t f rom Offer ing F inancia l Wel lness Programs

How Employers Benefitfrom Offering Financial Wellness Programs

With money-related issues being the leading cause of stress for Americans,equipping employees with tools and resources to increase their financialresiliency through financial wellness programs has the potential to reduce thefinancial challenges that often lead to stress. A recent study of participants in anemployer based financial wellness study found that 72% of participants felt lessfinancially stressed after enrolling in the program.51 In addition to increasinglevels of financial knowledge through financial education strategies, the use oftangible tools and financial products in financial wellness programs caneffectively respond to and prevent the events that cause financial stress in thelives of employees.

Employers are recognizing the multiple benefits that accrue, to both theiremployees and to themselves, when they offer workplace-based financialwellness programs. Employees with greater financial wellbeing are healthier ingeneral, as decreased financial stress helps to reduce the detrimental physicaland mental health effects of stress.52 For employers, this can translate intoreduced operating cost s – on average, $348 per sick day, per employee.53 Inone instance, a large public company reported saving 21.57% on health carecosts for heavy users of a workplace-based financial education program overthe course of a year. This amounted to over $1 million in health care savingsamong all users of the program. The same company also reported a savings$837,230 through reduced absenteeism among users of the financial education program.54

Employees who reduce their financial stress also reduce workplace distractionsand loss of productivity. Estimates of potential employer savings from limitingpersonal financial distractions in the workplace can be as high as $5,000- peremployee, per year.55 Employees who are more focused at work perform betterand are less likely to experience a workplace accident.

72%felt less financially

stressed after enrolling

$348in reduced operating costsper sick day, per employee

$5,000in employer savings fromlimiting personal financial

distractions in the workplace

How Employers Benef i t f rom Offer ing F Inancia l Wel lness Programs | 15

Workplace financial wellness programs have also been shown to reduce employee requests for 401(k) loans,and to influence increased contributions to retirement savings.56 This in turn can help employers comply withfiduciary responsibilities of retirement packages, create a more desirable balance within a 401(k) portfolio, andattract talent by offering more generous retirement packages.57

Finally, offering financial wellness programs can help employers increase retention and employeecommitment. Offering comprehensive benefits packages helps employers recruit talent and increaseemployee loyalty.58 Similarly, offering financial wellness programs can help employees mitigate financialcrises and maintain job stability once they become engaged. In addition, employees who are able toincrease their financial literacy and confidence about their current financial situation are more likely to besatisfied in their employment.59

16 | How Employees Benef i t f rom FInancia l Wel lness Programs

How Employees Benefitfrom Financial Wellness Programs

As prevalent as financial stress is across different demographics and incomelevels, so is the desire to increase money management skills. According to arecent global study, 90% of consumers would like to improve their moneymanagement skills.60 A high quality financial wellness program can helpemployees increase their financial capability by offering opportunities to:

4 improve basic money management skills and financial decision making;

4 increase savings for short-term expenses and emergencies, as well long-term retirement plans and investments;

4 decrease stress and improve physical and mental health;

4 support job stability and satisfaction;

4 improve credit scores; and

4 decrease credit costs and debt burdens.

Potent ia l Obstacles for Employers | 17

Potential Obstacles for EmployersDespite the benefits of offering financial wellness programs, employers may bewary of providing them to employees if they’re not guaranteed to cover theprogram’s expense through cost reductions and productivity gains.

Costs to deliver a financial wellness program usually include initial set up fees andongoing program administrative costs. However, these expenses can instead beviewed as an investment: research shows that the return on investment peremployee for a financial wellness program is 3:1.61 This ROI does not include morelong-term and indirect benefits, such as attracting higher-qualified employees,increased employee satisfaction, and greater participation in 401(k) plans.

Employers may also be concerned that financial wellness programs will notgenerate enough employee participation to make them worthwhile or achieve thedesired affects. In many cases, the most likely participants in a financial wellnessprogram will be highly motivated employees, not necessarily those in most need ofassistance. As a result, employers may choose to incorporate incentives toencourage participation, and develop a culture that accepts the reality that manydo struggle to make ends meet. For example, a common incentive offered byemployers to increase participation in general wellness programs is reduced healthinsurance premiums.64 This same approach could be translated to financial wellnessprograms as well.

Furthermore, financial wellness programs often focus on building financial capabilityversus only financial education. Financial capability means pairing tangible financialresources, products and services with financial education to maximize the immediateand long-term impact on consumers through affecting behavior changes. Forexample, a financial wellness program may offer emergency loans that have thepotential to meet immediate employee needs, and can also serve as a teaching tooland an opportunity to build assets such as credit or savings accounts.

Financial wellness programs also leverage technology so that participants can haveaccess to personalized information and tools 24:7, without being limited to onlyattending a scheduled workshop or coaching appointment.

18 | Conclus ion

ConclusionThere is a growing awareness of the important role financial wellbeing and strategic moneymanagement plays in the lives of employees, and the impact their wellbeing has on theiremployer’s success. In response, companies are increasingly adopting financial wellnessstrategies in order to create healthier, more stable workforce populations. Financial wellnessprograms succeed by offering a range of options, services, and innovative tools that employerscan choose from to meet the specific needs of their respective workforce. Ultimately, financialwellness programs offer tremendous potential for an employer to improve the financialwellbeing of its employees while benefitting from a substantial return on investment.

About the ResearchThis paper was conceived and developed through an innovativecollaboration with Emerge Financial Wellness. ING EmployeeBenefits commissioned Emerge to assist in the development of this report. For more information about Emerge, visit www.emergebenefit.com.

Dr. Michal Grinstein-Weiss, Reviewer and Advisor

Dr. Michal Grinstein-Weiss is the associate director of the Center for Social Development atWashington University in St. Louis.

Grinstein-Weiss is a nationally and internationally recognized expert in the field of assetbuilding, and her research focuses on developing programs and policies to promoteeconomic and social development of vulnerable groups. Currently, Grinstein-Weiss iscollaborating on ground-breaking studies that examine innovative ways to increase savingsand to promote financial security of American households.

Carmina Lass, Lead Writer/Independent Researcher

Carmina Lass is an independent writer, researcher and consultant. She primarily works withnonprofit organizations that improve the financial condition of working Americans. Herresearch is focused on designing and implementing innovative financial literacy curricula, aswell as online educational tool development.

Lass formerly managed the financial education programs at Innovative Changes, a nonprofitbased in Portland, OR.

emergefinancial wellness

End Notes | 19

1 Brobeck, S. (2008). Understanding the Emergency Savings Needs of Low- and Moderate-Income Households: A Survey-Based Analysis of Impacts, Causes and Remedies.Consumer Federation of America Manuscript.

2 Forsyth, J. (2012, September 19) More than two-thirds in U.S. live paycheck to paycheck:survey. Reuters. Retrieved from: http://www.reuters.com/article/2012/09/19/us-usa-survey-paycheck-idUSBRE88I1BE20120919.

3 Brooks, J. & Wiedrick, K. (2013, January). Assets and Opportunity Scorecard. Living on theEdge: Financial Insecurity and Policies to Rebuild Prosperity in America. Center forEnterprise Development. Retrieved from: http://assetsandopportunity.org/scorecard/about/main_findings/

4 The 2012 Consumer Financial Literacy Survey. (2012) The National Foundation for CreditCounseling and The Network Branded Prepaid Card Association. Retrieved from: www.nfcc.org./

5 ibid.6 Lusardi, A. S. (2007). Financial Literacy and Retirement Preparedness: Evidence and

Implications for Financial Education. Business Economics, 42(1), 35.7 The Pew Charitable Trusts. (2012, July). Payday Lending in America: Who borrows, Where

they borrow and why. Retrieved from: http://www.pewstates.org/uploadedFiles/PCS_Assets/2012/Pew_Payday_Lending_Report.pdf

8 Saunders, L., Plunkett, L. & Carter, C. (2010, June). Stopping the Payday Loan Trap:Alternatives that Work, Ones that Don’t. National Consumer Law Center.

9 Center for Responsible Lending. (2012). Payday Lending: How a short-term loan becomeslong-term debt. Retrieved from http://www.responsiblelending.org/payday-lending/.

10 Saunders, L., Plunkett, L. & Carter, C., op.cit.11 ibid.12 Federal Deposit Insurance Corporation. (2012). 2011 FDIC National Survey of Unbanked

and Underbanked Households. Retrieved from: http://www.fdic.gov/householdsurvey/ 13 Brooks, J. & Wiedrick, K., op.cit.14 Bricker, J., Kennickell, A., Moore, K., & Sabelhaus, J. (2012) Changes in U.S. Family

Finances from 2007 to 2010: Evidence from the Survey of Consumer Finances. FederalReserve Bulletin, Vol. 98, No. 2.

15 Brooks, J. & Wiedrick, K., op.cit.16 Shapiro, G. K., & Burchell, B. J. (2012). Measuring Financial Anxiety. Journal Of

Neuroscience, Psychology, & Economics, 5(2), 92-103.17 Brooks, J. & Wiedrick, K., op.cit.18 PricewaterhouseCoopers. (2012) Employee Financial Wellness Survey: 2012 Results.

Retrieved from: http://www.pwc.com/en_US/us/private-company-services/ publications/assets/pwc-financial-wellness-survey.pdf

19 Helman, R., Copeland, C., & VanDerhei, J. (2012). 2012 Retirement Confidence Survey:Job Insecurity, Debt Weigh on Retirement Confidence, Savings. EBRI Issue Brief, no. 369,March 2012.

20 ibid.21 Curley, J., Ssewamala, F., & Sherraden, M. (2009). Institutions and Savings in Low-

Income Households. Journal Of Sociology And Social Welfare, 36(3), 9-32.22 American Psychological Association. (2012, January 11). Stress in America: Our health at

risk. Retrieved from: http://www.apa.org/news/press/releases/stress/2011/final-2011.pdf23 Garman, T., et. al. (2005, March 23). Financial Distress Among American Workers Final

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37 Employee Benefit Research Institute. (2011, December). 401(K) Plan Asset Allocation,Account Balances, and Loan Activity in 2010. Issue Brief No. 366 Retrieved from:http://www.ebri.org/publications

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About ING U.S.ING U.S. (NYSE: VOYA), which plans to rebrand in the future as Voya Financial, is a premier retirement, investment andinsurance company serving the financial needs of approximately 13 million individual and institutional customers in the UnitedStates. The company's vision is to be America's Retirement Company, and its guiding principle is centered on solving the mostdaunting financial challenge facing Americans today – retirement readiness. Working directly with clients and through abroad group of financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists, ING U.S.provides a comprehensive portfolio of asset accumulation, asset protection and asset distribution products and services. Witha dedicated workforce of approximately 7,000 employees, ING U.S. is grounded in a clear mission to make a secure financialfuture possible -- one person, one family and one institution at a time.

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