YOUR MISSION: Financially Empowered Employees

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1 YOUR MISSION: Financially Empowered Employees Increasing Corporate Fitness through Financial Wellness Programs Laurie C. Wieder, PPC Vice President, Alliant Qualified Plans

2 A PASSION FOR IMPORTANT ISSUES SHRM Involvement Retire-ability and Financial Wellness Employees: Financial Security Today and Tomorrow Employers: Productive Workplaces, Excellence in Business

3 FINANCIAL WELLNESS?

4 FINANCIAL WELLNESS Manageable Level of Financial Stress Lifestyle at or Below one s Financial Means Strong Financial Foundation: Emergency Savings No high-interest debt Sufficient insurance Estate Plan Future Goals... and a Plan to Achieve them! Enjoyment of Life...

5 THE CORPORATE CONNECTION... Productivity at Work Employees don t leave their stresses at the office door. The ups and downs of their personal lives, their mental and physical health, and the worries which preoccupy their thoughts affects whether they bring 100% of themselves to work and directly impact the potential for absenteeism and presenteeism. James Reid, Met Life

6 CORPORATE FITNESS Workplace Survey Purchasing Power 33% of employees have difficulty meeting monthly expenses 41% don t have a budget 37% of employees spend time at work dealing with personal finance issues! Per PricewaterhouseCooper percent of workers spend three or more hours during the workweek dealing with or thinking about financial issues.

7 CORPORATE FITNEES Benefits to Employers with Corporate Wellness Programs Decreased Absenteeism Fewer Wage Garnishments Increased Contributions to 401k and HSAs Improved Employee Retention Employees are Less Distracted... Better able to Focus on their Jobs

8 CORPORATE FITNEES More Benefits to Employers When Employees Retire on Time Lower Salary, Leave, Paid-Time-Off Expenses Lower Health Care, Benefits Costs

9 CORPORATE FITNESS Increased Employer Support 83% of employers say they offer financial wellness programs up from 20% two years earlier!... Prudential, 2017 Employer interest in Financial Wellness grew by 300% in 2017!... Google Trends

10 THE CHALLENGE Prudential asks... Why Not? 4% - Employees aren t interested 10% - No Leadership Support 28% - Lack of Internal Resources 28% - Not a Priority 31% - Don t Know How/Where to Start

11 THE SOLUTION Human Resources An Advocate for Financial Wellness Change the Equation Demonstrate the Corporate Benefits of Financial Wellness Present an Affordable Solution Obtain Leadership Buy-In

12 THE SOLUTION Very few employees, no matter their age, define financial wellness in terms of retirement... BUT the 401k plan is often the place to deliver a strong Financial Wellness program. Mark Singer, Employee Benefits Guru

13 FINANCIAL WELLNESS PROGRAMS Financial Basics - Topics Basic Budgeting Debt Management Understanding Credit Card Debt Developing a Savings Habit Obtaining Insurance Purchasing a Home College Savings

14 FINANCIAL WELLNESS PROGRAMS Retirement Planning Basics - Topics Retirement Income Planning Long Term Care Insurance Wills and Estate Planning Social Security Claiming Strategies

15 FINANCIAL WELLNESS PROGRAMS Education Materials Financial Lunch & Learn Videos, Pamphlets Webinars Recordings Individually Tailored Financial Programs Individual Guidance

16 FINANCIAL WELLNESS PROGRAMS Retirement Planning Tools Retirement Calculators Interactive Tools Individually Tailored Planning Programs Individual Guidance

17 FINANCIAL WELLNESS PROGRAMS Sources of Help Your 401k Advisor 401k Participant Website Learning Centers Google SHRM Website

18 FINANCIAL WELLNESS PROGRAMS Your Communications Plan Make Financial Wellness a part of your coordinated Benefits Communication Regularly Promote Educational Tools, Opportunities Consider Incentives for Financial Education Participation Differentiate Communications Texts, Personal Phone Calls

19 FINANCIAL WELLNESS PROGRAMS Good News Repeat users of financial wellness programs show substantial improvements Financial Finesse Employers offering program at least 3 years Repeat users 2x as likely to be on track for retirement 43% of repeat users v. 19% of first time users are less likely to report high or overwhelming levels of financial stress Key improvement areas: cash flow, emergency fund, annual credit checks, adequate insurance

20 Your Ideas and Experiences?

21 BONUS ROUND

22 BUILDING EMPLOYEE FINANCIAL CONFIDENCE When Employees believe they are Successfully Preparing for the Future, they are Confident. Financially Confident Employees are Productive, Satisfied Employees. Employers can help Employees Successfully Prepare for the Future through 401k Plan Design and Management.

23 SUCCESSFUL PREPARATION FOR RETIREMENT 401k Plan Success Goals 90% Participation 10% Savings 90% Proper Investment

24 SUCCESSFUL PREPARATION FOR RETIREMENT 401k Plan Design, Management Steps 1. Automatic Enrollment 2. Automatic Escalation 3. Make Investment Selection Easy 4. Re-enrollment

25 EMPLOYEE CONFIDENCE THROUGH 401K PLAN DESIGN, MANAGEMENT 90% Participation, 10% Savings Start Auto Enrollment at 6% Auto Escalation at 2% per year up to 10% Employees Support Auto Enrollment, Auto Escalation Employees look to Employers for Savings Guidance No greater opt out with 6% vs. 3%

26 EMPLOYEE CONFIDENCE THROUGH 401K PLAN DESIGN, MANAGEMENT 90% Proper Investment Make Investment Selection Simple Managed Portfolios Optimum Individual Guidance, Interactive Website Re-enrollment Default all Participants into QDIA Allow Opt Out

27 Your Experience Your Questions

28 THANK YOU! Laurie C. Wieder, PPC Vice President, Alliant Qualified Plans