With the scope of voluntary benefits steadily expanding, there’s one important benefit that drives to the heart of what it means to be an employer for employees.
Financial planning is crucial for employees to plan for their family’s future, manage financial stress, and stay invested in the company. On average, employees who change employers receive a 10 percent increase in pay. To help retain employees, companies need to offer a competitive package of benefits that addresses the financial needs of today’s workforce.
What is financial planning?
Financial planning can cover a number of aspects of the financial world, including retirement funds, investment strategies, refinancing on loans, tackling debt, and so much more.
Here are details on the most effective forms of financial planning benefits:
Retirement Funds
Time Money reported 1 in 3 Americans have nothing saved for retirement. The majority of Americans are behind on their retirement savings. Workers lacking an employer-sponsored retirement fund have the most difficult time saving, especially when they’re working to pay down debt.
Even with a company 401(k), saving for retirement isn’t a priority over paying student loan or credit card debt. Expect more companies to offer 401(k) contributions to employees currently repaying student debt.
Student Loan Benefits
Companies like hiring college graduates, as their degrees imply they have the necessary skills to function in their job. But those degrees often come at a cost that isn’t comparable to the return.
Helping your employees manage their student loan repayment isn’t difficult or expensive. Most employees can lower their monthly payments through an income-driven plan or by refinancing; the key is guiding them into the best repayment option.
IonTuition enrolls users into income-driven plans at twice the rate of federal servicers because IonTuition actively reaches out to help employees find better options. Between our concierge advisors and self-service platform, all employees with student debt can find value on Ion, even if it’s only to have the peace of mind that they’re already doing everything right.
Prioritizing Debt
In most industries, the delinquency rates for student loans is higher than credit cards, auto loans, and mortgages. This isn’t surprising, as failing to repay the former doesn’t carry the same risk of repossession as the latter does. Benefits that address student loans have an effect on the other forms of debt. Employees who lower their monthly student loan payment will have additional funds to pay other bills or save for retirement.
Choosing Your Financial Planning Tools
Carried by 44 millions Americans, student loans are now the second largest form of household debt. To not address student loans in your financial wellness program would be a disservice to your employees. IonTuition is the most comprehensive student loan benefit platform on the market, and the only option with in-house concierge student loan advisors. Partner with us today.