JPMorgan finds wellness benefits support healthy retirements

Emerging trends in financial wellness are becoming even more foundational to employee benefit plans, and are increasingly intertwined with other health and well-being offerings. 

A survey by JPMorgan Asset Management looked at financial wellness trends over the past decade and found that now, more than ever, employers are feeling the need to give employees a helping hand with their finances, alongside other holistic well-being support. Eighty-five percent of employers feel responsible for their employees' financial health, up from 59% in 2013. 

Beyond plans that encourage income generation in retirement, employers are boosting their investment into other financial wellness benefits, too. Twenty-five percent of employers now offer student loan repayment, while 40% offer an emergency savings account. Additionally, 60% have boosted their mental health benefits, an acknowledgment of the strain financial stress can cause on their workplace community. 

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"Plan sponsors recognize the interconnection of overall employee financial and personal wellness," says Alexandra Nobile, vice president of retirement insights at JPMorgan Asset Management. "Retirement income, student loan debt assistance and emergency savings programs are all being discussed more, and it's exciting to see that companies offering these types of programs see their retirement plans as more effective." 

Much of this increase can be attributed to employee demand: the survey found that employees trust their employers to help them with needs outside of their professional goals. This has opened up new opportunities for financial wellness and education to more than just an elite group, Nobile says. 

"Often, financial advice and offerings have been limited to those with larger account balances, but we've seen in younger generations the desire for more help when it comes to their overall financial wellness and that trend will continue to expand," she says. "There is a fight for top talent and these programs can help to attract and retain employees." 

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JPMorgan found that 90% of employees consider their retirement benefits when thinking about staying or looking for employment elsewhere, making financial wellness a top priority as employers design their benefit plans. Understanding that retirement isn't the only goal employees are balancing will help employers select the most appropriate support for their teams.  

"Plan sponsors realize that employees are not at their best at work if they are stressed about their finances," Nobile says. "Participants can be saving, but if the rest of their finances are not in order, they may have to take withdrawals from their retirement accounts and steal from their future selves. Retirement is just one piece of our financial picture."