The Problem

  • Almost 2/3 of Americans (61%) report having serious financial problems.

  • Less than 1/3 of workers (29%) have only enough savings to cover 6 months of living expenses.

  • US workers save less than 10% of their income each year.

  • At an increasing rate:

    • Workers are asking for financial help.

    • Wages are being garnished by debt collection agencies.

      • 19% of workers spend work time dealing with personal debt/credit issues.

  • Workers are asking for pay advances.

  • Nearly $9,000/worker/year is lost in productivity because of stress and distractions due to personal financial matters.

  • Defined contribution (DC) plans require workers to make knowledgeable decisions about their investments:

    • Workers don’t take full advantage of DC plans:

      • they don’t contribute enough to them

      • they don’t invest them prudently

      • they cash them out prematurely and suffer financial penalties

Note: The data above was obtained from multiple sources including the Foundation for Financial Wellness; Bagwell & Kim, 2003; D’Abate & Eddy, 2007; Prater & Smith, 2011); International Foundation of Employee Benefit Plans 2016 survey entitled "Financial Education for Today’s Workforce;" "Optimal Financial Knowledge and Wealth Inequality," by Annamaria Lusardi, Pierre-Carl Michaud, Olivia S. Mitchell;" JPMorgan: "Guiding Participants from Intent to Action: 2016 Defined Contribution Plan Participant Survey Findings.;"