How Well Protected are Employees Against Key Financial Risks?
Mar 01, 2018financial wellness,financial planning,employee benefits,workplace based plans,benefits planningSA-Articles
Many U.S. workers are unprepared to fully meet their financial needs in the face of key risks.
24% of employees have less than $1,000 in liquid assets for an emergency.
Prudential can help employers develop the right benefits design to meet employee need.
Most U.S. workers continue to be unprepared to fully meet their financial needs in the face of key risks, according to Prudential’s updated benchmark Financial Wellness survey.
In the three years since the 2014 benchmark survey, only one out of the four key risk areas – preparedness for “unexpected out-of-pocket expenses”– has shown improvement. Employees have lost ground when it comes to being prepared for “loss of income due to premature death” and “outliving assets in retirement”, while “loss of income due to illness or injury” has remained consistent.
How Prepared Are You to Deal with These Financial Risks?
The chart below shows the percentage of ongoing financial needs that employees would be able to cover in the face of key financial risks:
To help employers better evaluate the financial wellness of their employees, Prudential and EY1 created the Prutection ScoreSM, a tool to measure how well protected employees are against three key financial risks: loss of income due to illness or injury; out-of-pocket medical and non-medical expenses related to unexpected health events; and outliving assets in retirement.
This report details how the Prutection Score can provide data to help employers identify employees’ financial vulnerabilities, and target educational efforts and employee benefit solutions to meet specific employee needs.
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