Stage 1: Manage day-to-day finances and implement basic security precautions.
Stage 2: Establish emergency savings, insurance coverages, and a debt management strategy to protect against financial shocks.
Stage 3: Start to save for mid- and long-term goals while strengthening daily finances and protection plans.
Stage 4: Move forward on saving for retirement, healthcare expenses, and other goals, and explore ways to generate guaranteed lifetime income in retirement.
Stage 5: Develop a personalized retirement income strategy, while exploring new strategies for insurance coverage and legacy planning.
This roadmap can help individuals better understand whether they are on track to meet their goals and is a tool that individuals can use to personalize their financial wellness journey. Employers can further help their employees by offering a financial wellness program comprised of assessment tools, educational programs, budgeting and financial planning tools, access to investment and wealth-protection solutions, and advisory programs. Paired with financial wellness programs, Prudential’s five-stage roadmap outlined in this paper can help American workers plot a path to financial security.