“I think financial advisors will move in the direction of providing a broader, more holistic view, which will include taxation, allocation, location, budgeting to control expenses and whether employees have insurance and wills in place,” said Fredrik Axsater, global head of defined contribution for SSGA in London.
Of employees whose employers offer one-on-one financial advising, 68% use the service, and the most important reason for employers to offer a financial wellness programs is productivity.
“We all know that financial concerns are usually top of mind for individuals and families, but the findings from this survey clearly demonstrate how much concern individuals have about finances,” Axsater told the personal finance site MainStreet.
Largely 34% of employees say they would be more productive at work if they could manage their finances effectively. About 27% are stressed by health-care costs and 21% by mortgage debt, while 20% cited not having saved enough for retirement.
“Financial and workplace stressors have the greatest impact on work quality and productivity, which confirms what we are hearing from employers that we need to address workplace financial demands beyond retirement savings,” said Axsater.
Some 80% of employees think their employers should provide resources to improve their financial wellness and decrease their stress levels.
“Financial wellness is an emerging trend,” said Yost. “There’s opportunity for a lot of providers, including financial advisors.”