Retiring in your 30s! Sounds like a farfetched dream? Dream again.
A movement called FIRE (Financial Independence, Retire Early) is growing. More and more people are leaving their jobs and leading the way to a financially secure future. But wait, how can anybody manage to save so much, in so little time? It’s called financial preparedness, and it isn’t going to happen overnight.
Since Independence, the way we approach saving money has changed drastically, but the fundamentals remain the same. But let’s be real, most of us don’t aim on retiring until we are in our 60s or 70s. And we typically plan a decade or two before that. The reality is that employers too have an important role to play in the financial preparedness of their workforces. As employees find ways to up their savings rate, employers can start financial wellness plans to improve employees’ savings behaviour – hopefully helping them to be more relaxed about finances or even retire earlier than they thought possible.
Studies have shown that financial wellbeing can affect business performance, as well as the morale of the employee. As employers, you need to first understand how employees make financial decisions and what their priorities are. So, let’s dig deeper into what you can do as employers to financially prepare your employees for the future.
Financial Wellness: Two sides of the same coin
How does it affect employees?
Impact on your organization:
Things you can do:
Start your employees on the path to saving money early. Maybe you can set the tone during induction itself to let them know the importance of it. Check on them regularly through informal sessions or support groups.
Simply informing employees on the need to save money isn’t the best approach. 85% of the 18,000 people who completed our financial wellness partner- Scripbox’s – wealth check-up are still not on top of things. It’s always better to tailor plans to the individual employee’s goals and habits.
Pick the right tools
There are tons of apps, websites, spreadsheets and financial advisors out there, ready to help your employee chart a financial wellness plan. However, pick one or two to help your employees reach their goals in time. But do remember that tools are only a way to guide employees. Always give employees the freedom to take up or reject the company supported programs.
Have a plan for all levels of employees
As employees age, their needs differ. Helping employees at different seniority levels achieve relevant milestones (e.g. buying a house, kid’s education, supporting parents, preparing for retirement) needs several different approaches. Understand the benefits employees are looking for and advise targeted solutions to help them meet those needs.
Conduct Webinars on financial wellness
Technology can be leveraged in more ways than one when it comes to managing finances. Webinars are a great way to engage employees and allow them to address issues that matter most to them.
How can a financial wellness plan benefit your organization?
Now, who do you consult to implement a companywide financial wellness program? Reach out to the team at The Fuller Life! We’ve helped many corporates in India with such initiatives that cover sessions, webinars and collateral. Not just that, we even have creative ways to spread awareness about your company’s policies through communication using digital and floor engagement activities. From start to end, our team is ready to assist you, at every step!
Call us on +91 80500 58002/3 or email us at email@example.com to know more.