Plan Sponsors Ask: What Can Be Done to Combat Financial Stress?

Q: Our company strives to create an environment that allows our employees to thrive. We know that their personal financial worries carry over into work. What can we do to help them feel more at ease about their financial futures?

A: You’re right to think that you, as an employer, can make a difference in reducing your employees’ financial stress. As a matter of fact, according to recent research conducted by John Hancock Retirement Services, 69 percent of workers are stressed about their finances—whether it’s about credit card debt, student loan repayments, or everyday essential expenses. And 72 percent of the respondents admit to worrying about finances while at work. As you can imagine, that stress affects productivity. In fact, stressed-out employees cost employers about $2,000 per worker per year!

So, what can be done? A solid retirement plan is a great start. Offering a gentle nudge to employees to save early and often for retirement is crucial. But more education is also needed. Indeed, 60 percent of respondents in the John Hancock survey believe that getting financial advice at work would help reduce their stress, and 65 percent said it would help them save more for retirement! Introducing education or advice programs on financial topics—such as debt management, health care planning, social security, and budgeting—could be just what your employees need to alleviate stress in their personal and professional lives.

Not sure where to start? Most 401(k) service providers offer online tools and resources designed to help employees save for retirement and make positive financial choices. Reach out to your service provider today to see what resources it has that could work for you.