HR Answers: The ROI of financial wellness

New predictive model finds large employers could save over $65 million from improved retirement preparedness.

by CU Management

Financial Finesse’s Financial Wellness Think Tank recently released new predictive model research quantifying the improvements in employee retirement preparedness which generate return on investment for an employer by reducing the costs of delayed retirements. “2018 Special Report: The ROI of Improving Employee Retirement Preparedness” found that for a 50,000-employee company, this could lead to a savings of $65 million or more per year.

Major findings from the ROI predictive model include:

  • Repeated engagement with financial wellness programs that improves average workforce financial health from a 4.0 to a 6.0 (on a 10-point scale) increases employee retirement plan contribution rates by a factor of 38 percent from original rates.
  • With program engagement and increased plan contribution, the projected average workforce age at which an employee can retire and replace 80 percent of their income drops two years, from 68.95 years to 66.96 years.

 

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