BY 2019 STATE OF FINANCIAL WELLNESS BENEFITS OF COMPANIES SAID FINANCIAL WELLNESS BENEFITS ARE IMPORTANT TO THEIR BUSINESS. Financial wellness benefits, just like Parental Benefits, are mostly important as a weapon for recruiting and retaining top talent. 84 % FINANCIAL WELLNESS BENEFITS ARE: WHILE 84% OF COMPANIES AGREED THAT FINANCIAL WELLNESS IS IMPORTANT TO THEIR BUSINESS, 4 OUT OF 5 COMPANIES DON'T FOLLOW THE BEST PRACTICES. Important to recruiting/retaining top talent 59 % Important to our brand 35 % Important for the bottom line of our business 31 % Will be important in 2019 28 % Not important yet 16 % THE BIGGEST BARRIERS TO FINANCIAL WELLNESS 40% of respondents identified the cost of medical care as one of the biggest barriers for employees to become financially well. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 65 % Cost of living 41 % Student loan debt 40 % The cost of medical care 33 % Knowing what to do (education) 33 % Lack of planning/ discipline 22 % The economy 21 % Stagnant or low wages 1 % Other WHAT FINANCIAL WELLBEING BENEFITS DO YOU OFFER? While over 40% of respondents say that student loan debt is their employees' biggest barrier to financial wellness, only 6% of the respondents offer any college debt benefits. 401(K) 95% Flexible Spending Account (FSA) 84% Health Saving Account (HSA) 61% Discount Program 43% Financial Planning & Education 42% Banking Benefits (ie: loan discounts, mortgage discounts, etc) 17% Health Reimbursement Account (HRA) 13% Payday Loans/ Advances 7% College Debt Benefits 6% Other 10% #1: Establish your Financial Wellness goals #2: Document your Financial Wellness strategy #3: Add formal Financial Wellness measurements No Yes 22 % 78 % No Yes 9 % 91 % No Yes 19 % 81 % THE MOST POPULAR FINANCIAL WELLNESS BENEFITS THE NEW IRS RULING OPENS THE DOOR FOR EMPLOYERS TO USE 401(K) PLANS TO ASSIST EMPLOYEES WHO ARE REPAYING STUDENT LOANS. [1] Are you familiar with the IRS ruling that opens the door for employers to use 401(k) plans to assist employees who are repaying student loans? 49% of respondents are aware of the new IRS ruling but only 1% are adding this feature to their financial wellness plans. Would you consider adding this feature? 61% 29% 1% 9% We will consider it at a later date We are thinking about it We will not add it We are adding it Rerement planning: 64 % YES 36 % NO Do you match your employees contributions? 54 % YES 46 % NO Do you have automatic 401(k) enrollment? 37 % YES 63 % NO Is there auto escalation as well? 5 keys to a Successful Financial Wellness Program: bit.ly/financial-wellness-program Survey consisted of 86 responses from companies with 15 to 3,000 Benefits Eligible Employees across different industries and geographical locations within the US. [1] bit.ly/IRS-student-loans [2] bit.ly/HSA-Playbook-2019 www.lumity.com The biggest barrier to a higher HSA adoption remains employee understanding and education (45% of respondents). Last year this was also identified as the biggest barrier, so we released an HSA playbook for employers: Planning for medical expenses: FSAs and HSAs How to Drive HSA Adoption HEALTH SAVINGS ACCOUNT PLAYBOOK Learn the 4-steps to drive HSA adoption [2] 401(k) NO 51.2 % YES 48.8 % *Note that there was no correlaon between company size and following best pracces. Get $50 to connect with a benchmarking expert: bit.ly/benefits-benchmarks TRYING TO ATTRACT AND RETAIN TOP TALENT? SEE HOW YOUR BENEFITS STACK UP.