1. Financial Wellness Landscape Analysis:
An Overview of the Need for
Workplace-Based Financial Wellness Programs
EMPLOYEE BENEFITS

2. Table of
Contents
Executive Summary ..................................................................... 3
The Financial Wellness Landscape............................................... 4
American workers living paycheck to paycheck ........................................4
Financial literacy and money management ...............................................5
Payday loans and their effect on workforce productivity...........................5
Credit card debt ........................................................................................6
Savings capacity........................................................................................6
Retirement savings....................................................................................6
Financial Distress: The Impact on Employers
and the Workforce ...................................................................... 7
Financial stress and health ........................................................................7
Financial stress as a workplace distraction................................................8
Employee turnover effects.........................................................................8
A Financial stress and 401(k) participation and loan usage ......................8
Employer Strategies for Improving Financial Wellness............... 9
What is financial wellness? .......................................................................9
What are the components of workplace-based
financial wellness programs? ..................................................................10
How Employers Benefit from Offering Financial
Wellness Programs .....................................................................14
How Employees Benefit from Financial
Wellness Programs .....................................................................16
Potential Obstacles for Employers .............................................17
Conclusion ..................................................................................18
End Notes ...................................................................................19

3. Ex ec uti v e Sum m ar y | 3
Executive Summary
Employers have long
sought to both maximize
productivity and maintain a
strong and productive
workforce. Employers are
increasingly looking to
benefits packages as a
means to leverage a more
productive workforce, with
employee wellbeing
emerging as a priority.
Financial wellness programs – which may include a variety of innovative
products, professional services, and financial education tools – can help
employers improve their bottom lines by:
4
4
reducing absenteeism
and sick-time usage
4
increasing retention
and employee loyalty
4
reducing financialrelated stress
among employees
minimizing
401(k) loan usage
4
Improving productivity
through reduction
in ‘presenteeism’
Financial wellness programs succeed by offering a range of options that
employers can choose from to meet the specific needs of their respective
workforce. These programs offer tremendous potential for an employer to
improve the financial wellbeing of its employees while benefitting from a
substantial return on investment.

4. 4 | The F i n a n c i a l Wel l n ess La n d scap e
The Financial
Wellness Landscape
Americans need ways to
help them increase their
financial stability and
security. This challenge is
not limited to the lower
thresholds of income.
Workers at all income
levels struggle in their
abilities to manage money,
make investment
decisions, improve their
credit, and build assets.
American workers living paycheck to paycheck
Americans are struggling to save across income levels. A recent survey found
that approximately two-thirds of American workers were living paycheck to
paycheck in 2012.2
Additionally, according to a 2013 study, approximately 43.9% of American
households are liquid asset poor – they do not have the savings to be able to
sustain their most basic expenses for a period of three months in the case of a
loss of income.3 Families who are liquid asset poor lack the necessary resources
to weather a financial emergency or manage unexpected expenses such as
illness or car repairs. As a result, consumers may accumulate credit card debt, or
turn to high-cost and often predatory financial services such as payday loans.
– 35%
31% 33%
$$$
29%
– 30%
– 25%
23%
Did You Know?
Less than half of low
and moderate income
families have emergency
savings of at least $500.1
33%
– 20%
Percentage of employees
who have already used
money in retirement plans
for expenses other than
retirement – shown by age
– 15%
– 10%
– 5%
– 0%
21-34
years
35-44
years
45-54
years
55-64
years
65+
years
Source: PWC Employee Financial Wellness Survey 2012 Results

5. The F i nanc i al Wel l nes s L ands c ape | 5
Financial literacy and money management
Americans also lack confidence in their ability to manage personal finances overall.
The 2012 Consumer Financial Literacy Survey found that 80% of Americans believe
that they could benefit from information and advice from a professional about
everyday financial questions.4 More than half of Americans do not have a regular
budget, including 22% of consumers who report that they do not have a good
idea of how they are spending their money.5
Poor money management knowledge and habits also impact consumers’ long-term
stability. Those with lower levels of financial literacy are less likely to save for
retirement, or to be able to make informed decisions about long-term investments.6
Payday loans and their effect on workforce productivity
Payday loans, which can send participant consumers spiraling into financial distress,
are used by 12 million Americans each year, at all income levels, but primarily by
those in lower income brackets.7 The median annual income of a payday loan
borrower has been estimated to be as low as $20,000 and as high as $50,000.8
Payday loan users are often indebted for more than half of each year in which they
borrow, with an average of nine transactions at annual interest rates surpassing
400%.9 In addition, payday lending has been shown to contribute to the loss of
bank accounts, increased bankruptcy filings, financial hardship, and credit card
delinquency.10 Ultimately, payday loans have the potential to create and contribute
to financial crises among the consumers who use them.
Despite these jarring statistics, the strength of the industry indicates that there is a
need in the marketplace for short-term loans that meet consumers’ need for
products that are easy and quick to access.11 According to the FDIC 2011 National
Survey of Unbanked and Underbanked Households, consumers, even those who
are banked, use payday and pawn shop loans because it is easy to become
approved for this type of credit. About twenty percent of households surveyed also
reported using these types of credit because they did not perceive that small-dollar
personal credit was offered by their bank or credit union.12
States across the nation are adopting stronger policies to curb predatory lending.
Currently, 19 states have capped the maximum APR on short-term consumer loans
at 36% or lower.13 However, many states are still without consumer protections,
while states that do have regulations have seen a rise in online businesses offering
similar products. In response, many banks, credit unions, nonprofit organizations
and socially responsible businesses across the country have been working towards
creating better and more affordable alternatives to payday lending to meet
consumer demand.

6. 6 | The F i n a n c i a l Wel l n ess La n d scap e
Credit card debt
The average credit card balance among households that carry credit card debt is
$7,100.14 High debt loads and an inability to repay are contributing to declining
credit ratings; in fact, 56% of American consumers have subprime credit.15 Debt
has been shown to have implications on consumers’ mental health including lower
self-esteem, lower productivity and higher levels of stress.16 In addition to the
impact that debt has on consumers’ mental health, low credit ratings are
preventing households from building assets and saving for retirement.
Savings capacity
With difficulty managing cash flow – and with high debt loads – Americans are
struggling to save. The realities of liquid asset poverty are preventing workers from
maintaining a safety net for financial emergencies and unexpected expenses or to
work towards general savings goals such as for vacations or holidays.
Without the ability to save for short-term purposes, Americans are also having
trouble building assets by investing in long-term savings goals such as college
education or home ownership. The median net worth in America was $68,948 in
2010, a decline of $27,000 since 2006.17
Not only are Americans not saving, but they are not confident in making decisions
about how to save their money. About half of American working adults, women
more so than men, report feeling uncomfortable about selecting investments.18
Here again, workers at all income levels struggle with their decisions.
Retirement savings
American workers’ confidence in their ability to retire is at a historical low, with
only 58% reporting that they currently save for this purpose.19 A survey of
household savings and investment activity (excluding their primary home and
defined benefit plans) reveals that 60% of workers report total investments of
$25,000 or less, and of those, 30% state they have saved less than $1,000.20
Lack of access to institutional savings mechanisms may be one of the biggest barriers
to saving. Empirical evidence suggests that, with the right financial products and
services, even low-income households can save and accumulate assets.21

7. F i nanc i al D i s tres s : The I mpac t on Empl oy ers and the Wor kf orce | 7
Financial Distress:
The Impact on Employers and the Workforce
Financial stress and health
There is a strong correlation between a person’s financial and physical health.
Financial stress is significant in the majority of people’s lives: 75% of those
surveyed named money as their number one source of stress.22 In addition, 1 in
4 American workers are seriously financially distressed,23 constituting more than
30 million workers who may be absent from or distracted at work as a result.24
In addition to the direct health consequences of high stress levels, stress can also
lead to unhealthy coping behaviors, such as tobacco and alcohol use, and
decreased physical activity that can result in further health problems.25 High levels
of stress related health problems tend to correlate with socio-economic status; in
low-income communities, where people face chronic stressors related to poverty,
stress-related health problems and unhealthy coping behavior tend to be high.26, 27
The result? Employees’ rates of sick day usage and absenteeism reflect the cost of
addressing stressful financial situations or health-related issues. Employers absorb this
impact through higher costs associated with health care, and managing through
workers’ absence. They recognize these costs, too. In a recent survey of employers,
58% believe that “financial illness” plays a role in employee absenteeism.28
The High Cost of Low Wellbeing
When it comes to reducing health care costs, employee wellbeing has a direct
impact on a company’s bottom line. Employees who are thriving in overall
wellbeing have 41% lower health-related costs compared with employees who
are struggling and 62% lower costs compared with employees who are suffering.
Annual Health-Related Cost to Employer
(Disease Burden and Unhealthy Days)
$11,709
Suffering
$7,388
Struggling
Thriving
Source: GALLUP
$4,395
Controlling for demographic differences at baseline
The costs of financial
distress extend beyond an
employee’s bank account.
Financial challenges and
financial distress impact
a worker’s health,
workplace effectiveness,
long-term financial
stability, and ultimately,
an employer’s bottom line.
Quick Facts
1 in 4 American
workers report that
they are seriously
financially distressed
4 in 5 American
workers report
some degree of
financial stress
Poor money
management and
insufficient emergency
savings are the
leading causes of
financial stress

8. 8 | Fina n c i a l D i s t re s s: T h e I m p a ct o n E mp l o yers and the Workforc e
Financial stress as a
workplace distraction
Financial stress and 401(k)
participation and loan usage
Employers not only lose money when employees are absent
from the workplace; financially distressed workers are more
likely to be distracted by money-related stress while on the
job, either by attending to personal financial business, or
discussing these issues with coworkers.
Without the resources to address financial emergencies and
manage high debt loads, financially distressed workers may
reduce or discontinue 401(k) contributions, or take 401(k)
loans, depleting retirement savings and disturbing the
balance of an employer’s 401(k) portfolio.
The vast majority of workers (97%) admit that they have
thought about or managed their personal finances during
work hours.29 For the most financially distressed employees,
this activity can amount to up to 20 hours per month spent
negotiating with creditors, paying bills, and discussing
financial issues with coworkers.30, 31 In a recent survey of
employers, 83% said that employee productivity was
impacted by concerns about financial problems.32
Immediately following the recession, the percentage of
401(k) loan usage increased. 2009 and 2010 data shows that
21% of employees on an eligible plan had an outstanding
loan balance, up from 18% in 2008.37 The average ratio of
outstanding loan to 401(k) balances is 14%.38 These changes
in 401(k) contributions and loan usage can affect the balance
of contributions for highly and lower compensated
employees that are required by nondiscrimination tests.39
Employees who take out 401(k) loans must then manage the
burden of additional debt payments, while those who
withdraw funds face high penalties and may compromise
their long-term financial resiliency.
Employee stress and distractedness due to personal financial
issues can also be costly to an employer when it results in loss
of workplace productivity, employee turnover, worker
compensation, and other medical related costs.33 In fact,
American companies lose more than 300 billion dollars a year
due to stressed employees at work.34, 35
Employee turnover effects
In addition, financially stressed employees may leave their jobs
because their financial stress gets in the way of their ability to
perform their job, or because they are changing jobs often,
looking for short-term gains or income boosts in order to deal
with financial issues. The cost of replacing an employee can
range from1.5 and 2.5 times the annual salary of the incumbent
worker, with training costs alone adding up to $1,200.36

9. Empl oy er Strategi es for I mprov i ng F i nanc i a l Wellness | 9
Employer Strategies
for Improving Financial Wellness
As research indicates, financial stress and instability can be costly to organizations
and their employees. However, an organization’s efforts to increase its employees’
wellbeing can help to reverse some of those costs. A person with a high level of
wellbeing is likely to have high productivity and as a result is far less costly to an
employer.40 Whereas an employee with self-reported low wellbeing can cost an
employer as much as $28,800 in lost productivity annually through sick day usage
alone, employees who have high levels of wellbeing may cost an employer as
little as $840 per year in lost productivity.41
In response to this information, more employers are turning to financial
wellness programs that, like traditional physical wellness programs, place an
emphasis not only on the treatment of stressors and difficulties, but also on
prevention and behavior change.
What is financial wellness?
Just as financial stress impacts people at all income levels, financial wellness can
be a characteristic found across the income spectrum.42 More than income
generation alone, financial wellness or wellbeing encompasses a variety of
factors affecting an individual’s financial health, such as financial capability
levels and behavior, financial status and stressors, and personal characteristics.
Some of the factors that determine an individual’s financial wellness may be
fixed, while others such as financial capability levels and behavior offer
opportunities for change, and ultimately improvement in an individual’s
financial and overall wellbeing.
Financial wellbeing involves deploying successful money management strategies
to spend money wisely, and create financial security. This is critical to reduce
day-to-day stress and anxiety and ensure a degree of both short- and long-term
economic freedom to achieve a desired standard of living.43
Financial wellbeing is not isolated from other elements of one’s life – rather, it is
interconnected to more holistic wellbeing, along with physical, social, career,
and community satisfaction.44
What we found was
that financial security –
the perception that you
have more than enough
money to do what you
want to do – has three
times the impact of your
income alone on overall
wellbeing. Further, a lack
of worry about money
has more than double
the impact of income on
overall wellbeing.
– Tom Rath and Jim Harter,
authors of "Wellbeing: The
Five Essential Elements"

10. 10 | Em p l o y e r S t r a t egi e s fo r I mp ro vi n g Fi n an ci al Wellnes s
What are the components
of workplace-based financial
wellness programs?
Today, employers can choose from newly emerging
financial wellness programs to offer their employees a
benefit that goes beyond financial education training
and retirement packages. These programs are
designed to address the complex factors that make up
an individual's financial wellness, including short-term
interventions to reduce the stresses of daily living as
well as long-term planning to ensure financial security.
In addition to offering comprehensive financial
support, financial wellness programs must also be
designed so that they are easily accessible by users,
generate high levels of initial enrollment, and
maximize ongoing levels of engagement.
In general, employees are less interested in general
financial education and more interested in
participating in specific and relevant topics of interest
to their situation – including debt management,
retirement, and investment planning.45
Components of successful workplace-based
financial wellness programs include:
Customized/Personalized to address different
employee’s financial concerns based on factors such as
financial knowledge, financial situation, income, and
debt-load. For example, a financial wellness program
may offer access to Personal Financial Management
tools (discussed further below) that provide customized
advice and timely content derived from an analysis of an
employee’s specific financial situation. This personalized
approach to financial wellness seeks to increase interest
and continued participation from employees as content
and tools that are delivered are relevant to an individual’s
personal financial situation.
Self-directed so that an employee may engage with
the program as much or as little as needed in ways
relevant to his or her immediate financial concerns.
Employer-provided financial wellness programs that offer
self-directed approaches to financial learning have been
shown to improve employees’ financial management
behaviors, and increase financial and career satisfaction.46
Responsive to changing financial situations, including
planned and unplanned financial events. A successful
financial wellness program will take into account the
diverse range of employee needs for services, and the
fact that those needs will change over time. For
example, a financial wellness program may offer shortterm loans for employees who encounter a financial
emergency, and investment counseling when that same
employee is ready to begin contributing to a retirement
account. Comprehensive and responsive services will
impact the ability of the program to affect an
employee’s financial wellbeing holistically, while also
contributing to long-term use of the program.

11. Empl oy er Strategi es for I mprov i ng F i nanc i al Wellnesss | 11
Easily accessible to maximize engagement and
continued use by leveraging organizational
infrastructure, innovative technology, and integrating
with other wellness programs. For example, a
financial wellness program may be integrated with
the same online database that an employee already
uses regularly to manage other employer benefits
and programs.
Ongoing by incorporating strategies that encourage
regular participation and help employees build upon
their financial wellness over time. For example,
financial wellness programs may incorporate
opportunities for participants to set goals and track
them over time as a way of maintaining long-term
engagement and consistent reminders of the services
that the program offers.
Dynamic by offering financial tools, relevant and
timely communication of financial information, and
two-way channels for employees to be able to access
personalized information and expert advice. As
opposed to merely providing static content on
financial topics, financial wellness programs create
opportunities for employees to interact with content
and apply their financial knowledge to their own
lives. For example, financial wellness programs may
offer employees the opportunity to review their credit
reports or consult with a financial advisor.
Focused on risk assessment, anticipating and
preventing financial emergencies, rather than
responding exclusively to those that already exist.
Financial wellness programs use risk assessment tools
such as initial assessments, credit monitoring and
tailored financial advice in order to increase
participants’ financial security and financial resiliency
when faced with a crisis. In doing so, employees are
better equipped in the case that a financial emergency
does arise, and may be able to do so with little impact
on their job performance and/or absenteeism.
Providing access to institutional mechanisms
that promote positive financial behavior, such as
access to bank accounts, goal-setting tools,
responsible credit, and investment opportunities.
Financial wellness programs may often serve as a
bridge to traditional financial services, especially for
underserved households, by eliminating barriers and
providing the information and access that employees
need in order to increase their financial capability.
Improving employee’s access to quality financial
services including credit and savings can reduce stress
and overall financial stability by helping employees
create safety nets and avoid more predatory, highcost services.

12. 12 | Em p l o y e r S t r a t egi e s fo r I mp ro vi n g Fi n an ci al Wellnes s
Many other factors will also contribute to the success of a customized financial wellness program, including the
relationship and trust between an employer and its workforce, the strength, capacity and reputation of the financial
wellness program and its ability to meet the needs of a diverse workforce.
The success of a financial wellness program will depend in part on its ability to provide
appropriate, dynamic and accessible delivery channels, but also on the quality of content
and delivery of individual program components, which may include:
Financial education, counseling and
planning across income levels. Traditional
financial education often entails seminars and
workshops, as well as one-on-one opportunities
to work with a financial coach, credit counselor,
or financial planner. Today, financial wellness
programs may include these elements, with the
major difference being that participants may
have more opportunities to engage on their own
terms. Seminars may be offered via pre-recorded
webinars that participants can watch at their
convenience, or financial coaches may be able to
meet with them through email exchanges, virtual
chats, and web-based meetings.
Benefits and retirement counseling. While it is
standard, and required, for employers to offer basic
financial education associated with retirement plans, a
financial wellness program may go beyond these
requirements and include a more pro-active and
targeted approach to delivering this type of financial
education. Activities may include one-on-one personal
budgeting to help employees begin to save for
retirement or to help employees improve deferral rates.
Web based tools including video chat and webinars can
offer wholesale counseling to educate and advise the
workforce on the voluntary and employer-sponsored
benefits available to them—so that each employee can
make informed benefit decisions throughout the year.
Participants can receive recommendations for
services that are most relevant to them. For
example, after participating in a financial wellness
assessment or quiz, a participant may be prompted
to begin with financial coaching to work on a
budget plan, or to speak with a financial planner
about investment options, depending on his or her
particular needs. In combination with appropriate
products and services offered through a financial
wellness program, effective financial education has
been shown to improve consumers’ credit scores,
increase savings rates and participation in 401(k)
plans, and better prepare consumers for asset
building opportunities such as homeownership.47, 48
Personal financial management tools (PFMs). PFMs are
becoming increasingly prevalent as components of
employers’ financial wellness programs. These online tools
provide money management features, financial education,
and personalized advice. Users can often link bank, credit
card, investment, and other accounts to construct a realtime picture of their personal finances. They can use this
information in order to make better financial decisions,
track progress, and receive information and customized
recommendations. Some PFMs offer incentives for positive
savings behavior, and link to social networking sites in order
to harness the power of social pressure to help individuals
meet their financial goals. PFM providers are increasingly
partnering with employers and workplace financial
wellness programs in order to provide customized tools
that align with an employee’s financial wellness objectives.

13. Employer Strategies for Improving Financial Wellness | 13
Credit report and identity theft monitoring. In
2012, the majority of American consumers reported that
they did not review their credit score or credit report.49
Yet when this data is paired with financial education and
credit building opportunities, it can be an important
component of financial wellness, and building assets.
Offering monitoring of credit scores and reports is
another way that workplace-based financial wellness
programs are merging quality education with timely and
relevant financial products. Employees can receive a
monthly credit report that reflects their credit standing,
and provides insight into what actions they can take to
improve it. Some employers also offer additional identity
theft monitoring and protection products.
Employer-based lending programs. Some employers
recognize their workforce’s dependence on high interest
payday and other predatory financial services, as well as the
administrative costs of making internal payroll advances. In
response, they may choose to partner with third party
banks and credit unions to offer affordable short-term
credit to employees to help alleviate financial stress,
especially when unforeseen events may threaten an
individual’s job security. Employer-based lending programs
have the potential to be highly sustainable and streamlined
by leveraging an employer’s existing infrastructure.
These programs are appealing to employees, too,
as they often combine online platforms, quick
processing, and auto-deduction of payments from
payroll, ultimately offering the ease and
convenience that workers typically seek for short
term borrowing. Furthermore, employer-based
lending programs, which often involve partnership
with a traditional financial institution, can
leverage the reputation of a known lender, and
help employees build relationships with local
banks and credit unions.50 While workplace-based
lending programs are often marketed as shortterm emergency products, they can also link with
credit building, savings components, and other
mechanisms that are designed to heighten
employee engagement with multiple elements of
the financial wellness program.

14. 14 | Ho w E m p l o y e r s B e n efi t fro m O fferi n g Fi n a nc ial Wellnes s Programs
How Employers Benefit
from Offering Financial Wellness Programs
72%
felt less financially
stressed after enrolling
$348
in reduced operating costs
per sick day, per employee
$5,000
in employer savings from
limiting personal financial
distractions in the workplace
With money-related issues being the leading cause of stress for Americans,
equipping employees with tools and resources to increase their financial
resiliency through financial wellness programs has the potential to reduce the
financial challenges that often lead to stress. A recent study of participants in an
employer based financial wellness study found that 72% of participants felt less
financially stressed after enrolling in the program.51 In addition to increasing
levels of financial knowledge through financial education strategies, the use of
tangible tools and financial products in financial wellness programs can
effectively respond to and prevent the events that cause financial stress in the
lives of employees.
Employers are recognizing the multiple benefits that accrue, to both their
employees and to themselves, when they offer workplace-based financial
wellness programs. Employees with greater financial wellbeing are healthier in
general, as decreased financial stress helps to reduce the detrimental physical
and mental health effects of stress.52 For employers, this can translate into
reduced operating cost s – on average, $348 per sick day, per employee.53 In
one instance, a large public company reported saving 21.57% on health care
costs for heavy users of a workplace-based financial education program over
the course of a year. This amounted to over $1 million in health care savings
among all users of the program. The same company also reported a savings
$837,230 through reduced absenteeism among users of the financial
education program.54
Employees who reduce their financial stress also reduce workplace distractions
and loss of productivity. Estimates of potential employer savings from limiting
personal financial distractions in the workplace can be as high as $5,000- per
employee, per year.55 Employees who are more focused at work perform better
and are less likely to experience a workplace accident.

15. How Empl oy ers Benefi t from O fferi ng F I nanc i al Wel l nes s Progr am s | 15
Workplace financial wellness programs have also been shown to reduce employee requests for 401(k) loans,
and to influence increased contributions to retirement savings.56 This in turn can help employers comply with
fiduciary responsibilities of retirement packages, create a more desirable balance within a 401(k) portfolio, and
attract talent by offering more generous retirement packages.57
Finally, offering financial wellness programs can help employers increase retention and employee
commitment. Offering comprehensive benefits packages helps employers recruit talent and increase
employee loyalty.58 Similarly, offering financial wellness programs can help employees mitigate financial
crises and maintain job stability once they become engaged. In addition, employees who are able to
increase their financial literacy and confidence about their current financial situation are more likely to be
satisfied in their employment.59

16. 16 | Ho w E m p l o y e e s B e n efi t fro m FI n a n ci al Wellnes s Programs
How Employees Benefit
from Financial Wellness Programs
As prevalent as financial stress is across different demographics and income
levels, so is the desire to increase money management skills. According to a
recent global study, 90% of consumers would like to improve their money
management skills.60 A high quality financial wellness program can help
employees increase their financial capability by offering opportunities to:
4 improve basic money management skills and financial
decision making;
savings
4 increaselong-termfor short-term expenses and emergencies,
as well
retirement plans and investments;
4 decrease stress and improve physical and mental health;
4 support job stability and satisfaction;
4 improve credit scores; and
4 decrease credit costs and debt burdens.

17. Potenti al O bs tac l es for Em ployer s | 17
Potential Obstacles
for Employers
Despite the benefits of offering financial wellness programs, employers may be
wary of providing them to employees if they’re not guaranteed to cover the
program’s expense through cost reductions and productivity gains.
Costs to deliver a financial wellness program usually include initial set up fees and
ongoing program administrative costs. However, these expenses can instead be
viewed as an investment: research shows that the return on investment per
employee for a financial wellness program is 3:1.61 This ROI does not include more
long-term and indirect benefits, such as attracting higher-qualified employees,
increased employee satisfaction, and greater participation in 401(k) plans.
Employers may also be concerned that financial wellness programs will not
generate enough employee participation to make them worthwhile or achieve the
desired affects. In many cases, the most likely participants in a financial wellness
program will be highly motivated employees, not necessarily those in most need of
assistance. As a result, employers may choose to incorporate incentives to
encourage participation, and develop a culture that accepts the reality that many
do struggle to make ends meet. For example, a common incentive offered by
employers to increase participation in general wellness programs is reduced health
insurance premiums.64 This same approach could be translated to financial wellness
programs as well.
Furthermore, financial wellness programs often focus on building financial capability
versus only financial education. Financial capability means pairing tangible financial
resources, products and services with financial education to maximize the immediate
and long-term impact on consumers through affecting behavior changes. For
example, a financial wellness program may offer emergency loans that have the
potential to meet immediate employee needs, and can also serve as a teaching tool
and an opportunity to build assets such as credit or savings accounts.
Financial wellness programs also leverage technology so that participants can have
access to personalized information and tools 24:7, without being limited to only
attending a scheduled workshop or coaching appointment.

18. 18 | Co n cl u si o n
Conclusion
There is a growing awareness of the important role financial wellbeing and strategic money
management plays in the lives of employees, and the impact their wellbeing has on their
employer’s success. In response, companies are increasingly adopting financial wellness
strategies in order to create healthier, more stable workforce populations. Financial wellness
programs succeed by offering a range of options, services, and innovative tools that employers
can choose from to meet the specific needs of their respective workforce. Ultimately, financial
wellness programs offer tremendous potential for an employer to improve the financial
wellbeing of its employees while benefitting from a substantial return on investment.
About the Research
This paper was conceived and developed through an innovative
collaboration with Emerge Financial Wellness. ING Employee
Benefits commissioned Emerge to assist in the development
of this report. For more information about Emerge, visit
www.emergebenefit.com.
emerge
financial wellness
Dr. Michal Grinstein-Weiss, Reviewer and Advisor
Dr. Michal Grinstein-Weiss is the associate director of the Center for Social Development at
Washington University in St. Louis.
Grinstein-Weiss is a nationally and internationally recognized expert in the field of asset
building, and her research focuses on developing programs and policies to promote
economic and social development of vulnerable groups. Currently, Grinstein-Weiss is
collaborating on ground-breaking studies that examine innovative ways to increase savings
and to promote financial security of American households.
Carmina Lass, Lead Writer/Independent Researcher
Carmina Lass is an independent writer, researcher and consultant. She primarily works with
nonprofit organizations that improve the financial condition of working Americans. Her
research is focused on designing and implementing innovative financial literacy curricula, as
well as online educational tool development.
Lass formerly managed the financial education programs at Innovative Changes, a nonprofit
based in Portland, OR.

19. E nd Not es | 19
1
2
3
Brobeck, S. (2008). Understanding the Emergency Savings Needs of Low- and ModerateIncome Households: A Survey-Based Analysis of Impacts, Causes and Remedies.
Consumer Federation of America Manuscript.
Forsyth, J. (2012, September 19) More than two-thirds in U.S. live paycheck to paycheck:
survey. Reuters. Retrieved from: http://www.reuters.com/article/2012/09/19/us-usasurvey-paycheck-idUSBRE88I1BE20120919.
Brooks, J. & Wiedrick, K. (2013, January). Assets and Opportunity Scorecard. Living on the
Edge: Financial Insecurity and Policies to Rebuild Prosperity in America. Center for
Enterprise Development. Retrieved from: http://assetsandopportunity.org/scorecard/
about/main_findings/
31
PricewaterhouseCoopers. (2012), op.cit.
32
Sammer, J. (2012). Financial Education--Stress = Improved Productivity. HR Magazine, 57(6), 71.
33
Brun et. Al (2006)Assessing the Costs of Work Stress. Retrieved from:
http://www.cgsst.com/stock/eng/doc272-806.pdf
34
Supra note 38, P. 26 Financial Literacy Partners, LLC., op.cit.
35
Wright, Thomas and Douglas Bonett. Job Satisfaction and Psychological Well-being as
Non-additive Predictors of Workplace Turnover. Journal of Management 2007 33: 141-160
36
Mueller, A. (2011, July 25). The cost of hiring a new employee. Investopedia. Retrieved
from: http://www.investopedia.com/financial-edge/0711/the-cost-of-hiring-a-newemployee.aspx#axzz2BN3wABlL/
37
Employee Benefit Research Institute. (2011, December). 401(K) Plan Asset Allocation,
Account Balances, and Loan Activity in 2010. Issue Brief No. 366 Retrieved from:
http://www.ebri.org/publications
38
EBRI (2011), op.cit.
39
Edmiston, K., Gillett-Fisher, M., & McGrath, M. (2009, October). Weighing the Effects of
Financial Education in the Workplace. The Federal Reserve Bank of Kansas City
Community Affairs Department.
4
The 2012 Consumer Financial Literacy Survey. (2012) The National Foundation for Credit
Counseling and The Network Branded Prepaid Card Association. Retrieved from: www.nfcc.org./
5
ibid.
6
Lusardi, A. S. (2007). Financial Literacy and Retirement Preparedness: Evidence and
Implications for Financial Education. Business Economics, 42(1), 35.
7
The Pew Charitable Trusts. (2012, July). Payday Lending in America: Who borrows, Where
they borrow and why. Retrieved from: http://www.pewstates.org/uploadedFiles/PCS_Assets/
2012/Pew_Payday_Lending_Report.pdf
8
Saunders, L., Plunkett, L. & Carter, C. (2010, June). Stopping the Payday Loan Trap:
Alternatives that Work, Ones that Don’t. National Consumer Law Center.
40
9
Center for Responsible Lending. (2012). Payday Lending: How a short-term loan becomes
long-term debt. Retrieved from http://www.responsiblelending.org/payday-lending/.
Joo, S. (2000). Improving Employee Productivity: The Role of Financial Counseling and
Education. Journal Of Employment Counseling, 37(1), 13.
41
Robison, J. (2010) The business case for wellbeing. Gallup Business Journal. Retrieved
from: http://businessjournal.gallup.com/content/139373/Business-Case-Wellbeing.aspx/
42
Rath, T., & Harter, J. (2010). Wellbeing: The Five Essential Elements (Kindle Locations
1278-1284). Gallup Press. Kindle Edition.
43
Rath, T., & Harter, J., op.cit.
44
Rath, T., & Harter, J., op.cit.
45
Joo, S. (2000). op.cit.
46
Loibi, C., & Hira, T. K. (2005). Self-directed Financial Learning and Financial Satisfaction.
Journal Of Financial Counseling & Planning,16(1), 11-21.
10
Saunders, L., Plunkett, L. & Carter, C., op.cit.
11
ibid.
12
Federal Deposit Insurance Corporation. (2012). 2011 FDIC National Survey of Unbanked
and Underbanked Households. Retrieved from: http://www.fdic.gov/householdsurvey/
13
14
Brooks, J. & Wiedrick, K., op.cit.
Bricker, J., Kennickell, A., Moore, K., & Sabelhaus, J. (2012) Changes in U.S. Family
Finances from 2007 to 2010: Evidence from the Survey of Consumer Finances. Federal
Reserve Bulletin, Vol. 98, No. 2.
15
Brooks, J. & Wiedrick, K., op.cit.
47
16
Shapiro, G. K., & Burchell, B. J. (2012). Measuring Financial Anxiety. Journal Of
Neuroscience, Psychology, & Economics, 5(2), 92-103.
Malouf, M. (2012). A Global View of the Benefits of Employee Financial Wellness.
Employee Benefit Plan Review,66(11), 15.
48
Curley, J., Ssewamala, F., & Sherraden, M. (2009). op.cit.
17
Brooks, J. & Wiedrick, K., op.cit.
49
The 2012 Consumer Financial Literacy Survey. (2012) op.cit.
18
PricewaterhouseCoopers. (2012) Employee Financial Wellness Survey: 2012 Results.
Retrieved from: http://www.pwc.com/en_US/us/private-company-services/ publications/
assets/pwc-financial-wellness-survey.pdf
50
Jacob, K. (2005, August). Meeting Them Where They Work: The Promise of Financial
Services Distribution in the Workplace. The Center for Financial Services Innovation.
19
Helman, R., Copeland, C., & VanDerhei, J. (2012). 2012 Retirement Confidence Survey:
Job Insecurity, Debt Weigh on Retirement Confidence, Savings. EBRI Issue Brief, no. 369,
March 2012.
51
Emerge Financial Wellness. (2013, February 5). Update: Program Success and
Employee Satisfaction.
52
Prawitz, A.D., & Garman, E.T. (2009, April), It’s time to create a financially literate
workforce to improve the bottom line. Benefits Compensation Digest, Volume 46,
Number 4, pages 1, 11-14.
53
Robison, J., op. cit.
54
Financial Finesse. (2011, December 6). Case Study: Impact of Employee Financial Stress
on Healthcare Costs. Retrieved from: http://www.financialfinesse.com/research-bestpractices/case-study-in-financial-wellness-the-impact-of-employee-financial-stress-onhealth-care-costs/#more-3795
55
Kadlec, D. (2012, July 19) Proof that workplace financial education works. TIME
Magazine online. Retrieved from: http://business.time.com/2012/07/19/new-evidencesays-workplace-financial-education-effective/
20
ibid.
21
Curley, J., Ssewamala, F., & Sherraden, M. (2009). Institutions and Savings in LowIncome Households. Journal Of Sociology And Social Welfare, 36(3), 9-32.
22
American Psychological Association. (2012, January 11). Stress in America: Our health at
risk. Retrieved from: http://www.apa.org/news/press/releases/stress/2011/final-2011.pdf
23
Garman, T., et. al. (2005, March 23). Financial Distress Among American Workers Final
Report: 30 Million Workers in America—One in Four—Are Seriously Financially
Distressed and Dissatisfied Causing Negative Impacts on Individuals, Families, and
Employers. Personal Finance Employee Education Foundation. Retrieved from:
http://www.personalfinancefoundation.org/features/Financial-Distress-AmongAmerican-Workers-Final-Report-full.html/
56
Financial Literacy Partners, LLC. , op.cit.
24
ibid.
57
Krueger, P., & Chang, V. (2008). Being poor and coping with stress: health behaviors
and the risk of death. American Journal Of Public Health, 98(5), 889-896..
Edmiston, K., et. al. op.cit.
25
58
EBRI, op. cit.
59
Hira, T. K., & Loibl, C. (2005). Understanding the Impact of Employer-Provided Financial
Education on Workplace Satisfaction. Journal Of Consumer Affairs, 39(1), 173-194.
60
Metlife (2011), op. cit.
26
Schulz, A. J., Mentz, G., Lachance, L., Johnson, J., Gaines, C., & Israel, B. A. (2012).
Associations Between Socioeconomic Status and Allostatic Load: Effects of
Neighborhood Poverty and Tests of Mediating Pathways. American Journal Of Public
Health, 102(9), 1706-1714
27
Thoits, P.A. (2010). Stress and Health: Major Findings and Policy Implications. Journal of
Health and Social Behavior, 51, (1), 41-53.
28
MetLife. (2011). The Metlife Study of Financial Wellness Across the Glove: A look at how
multinational companies are helping employees better manage their personal finances.
Boston College Center for Work and Families.
29
PricewaterhouseCoopers, op. cit.
30
Personal Finance Employee Education Foundation. (2009, May 28). Financial Distress
Taking Toll on Employee Health [Press Release]. Retrieved from
http://www.personalfinancefoundation.org./
61
Prawitz, A. & Garman, E.T., (2009). op. cit.
62
Wojcik, J. (2007). Financial incentives boost wellness program participation. Business
Insurance, 41(49), 28.

20. About ING U.S.
ING U.S. (NYSE: VOYA), which plans to rebrand in the future as Voya Financial, is a premier retirement, investment and
insurance company serving the financial needs of approximately 13 million individual and institutional customers in the United
States. The company's vision is to be America's Retirement Company, and its guiding principle is centered on solving the most
daunting financial challenge facing Americans today – retirement readiness. Working directly with clients and through a
broad group of financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists, ING U.S.
provides a comprehensive portfolio of asset accumulation, asset protection and asset distribution products and services. With
a dedicated workforce of approximately 7,000 employees, ING U.S. is grounded in a clear mission to make a secure financial
future possible -- one person, one family and one institution at a time.
ING U.S.’s Insurance Solutions business, which comprises its Retail Life and Employee Benefits segments, is a leading provider of
life insurance and medical stop loss in the U.S. The Retail Life business is focused on wealth protection and transfer opportunities
to meet the needs of a broad range of customers from the middle-market through affluent market segments. The Employee
Benefits segment provides stop loss, group life, voluntary and disability products to mid-sized and large businesses and has more
than 90 years of experience in the design, implementation and administration of employee benefits plans.
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