Although the pandemic is not over yet, we are starting to see a reduced number of new cases which is a good sign that Canadian businesses can get back to normal. However, after shutting down much of the economy, many employers and employees have seen major changes to their group retirement plans. Financial wellness is the key to surviving a post-COVID financial pandemic.
Technically a pandemic is an infectious disease that affects more than one country, although financial hardship is not an infectious disease, it does affect the economy and citizens of every country. Many employees who were able to continue working saw employer contributions to group retirement plans reduced or suspended entirely. Some employees saw pay cuts or reduced hours in addition to a reduction in employer contributions. Some employees lost their jobs entirely and some businesses may never recover.
Financial wellness has been growing in popularity amongst group plan members and sponsors for the past few years. Now more than ever, financial literacy is extremely important for employees and employers. There is a plethora of studies illustrating the cost of financially stressed employees to the business owner. Some of the common bottom line costs include:
- Employees using company time to juggle their finances
- Sick days increase as employee stress rises
- Financial stress can lead to long-term health problems
Financial wellness is the key to surviving a post-COVID financial pandemic, employers can assist their employee’s financial recovery by reaching out to the plan provider for financial education options.
Traditional financial education sessions have been focuses solely on retirement, which excludes younger employees that have difficulty seeing that far into the future. Comprehensive financial wellness education focuses on the present and how to get your current finances in order. These presentations can offer tips on how to reduce current household costs, record spending and changing spending habits. Once your employees have their current financial situation under control, they can begin to think about planning for retirement.
Traditionally these education sessions were face-to-face, with the current situation there has been a large shift to webinars or recorded sessions. Employees typically prefer access to education sessions on their own time, rather than sitting for a live presentation at a specified time.
If financial wellness is the key to surviving a post-COVID financial pandemic, then it is important your employees have access to comprehensive and effective financial education. If you want to learn more about financial literacy and education, contact DENT Benefits to speak with one of our experienced advisors.
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.