Earlier this year, statistics from the Federal Reserve highlighted the financial challenges many Americans face.
We learned that a significant number live paycheck to paycheck and would not be able to cover an unexpected $400 expense.
In hindsight, perhaps this shouldn’t have come as such a revelation. The average American working full-time earns $47,060 a year, although that can vary significantly based on age, gender, race, education and location, among other factors. More than three-quarters of Americans are carrying debt, and that debt averages over $5,000.
Add to this the often crushing financial impact of student loans, an issue that affects employees in all generations, and this crisis has been brewing for some time.
Regardless, the proverbial cat is finally out of the bag, and the conversation around employee financial well-being has intensified and expanded. This is a positive development, as employers are more aware of and interested in benefits that help employees with both near- and long-term financial needs.
But, it’s a mistake to assume only low or medium earners need help. While women, younger workers and those earning less do face the most challenge, employees earning $100,000 or more are also struggling to make ends meet, and they aren’t always able to save.
Almost a half-million employees provided information about their financial situation when using our MyChoiceSM Recommendation Engine during 2019 Annual Enrollment. By aggregating this data, we gained some insights about just who is feeling the pinch.
As employers consider what types of financial benefits to provide, it’s important to understand who might need help. Financial insecurity impacts people all along the earning spectrum, although it is certainly most pronounced among employees who earn less.
However, if you are an employer with highly compensated employees, you should still be considering their financial situation plus benefits and programs that help people meet their near-term and unexpected expenses. Even people earning that proverbial “six-figure” salary aren’t immune from financial issues. If you want to provide meaningful support and ensure all employees aren’t spending their time at work worrying about money, don’t assume your high earners don’t need help.
Want more insights from our MyChoiceSM Recommendation Engine Benefits Insights Report about the differences and similarities among employee groups when it comes to their financial situation, emotional state and knowledge about benefits?
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