Financial well being, simply put, is having a financially healthy life. It implies that you have plenty of retirement, school and emergency funds and your debts are also fully payable. They realize that financial health comes with sound personal financial management. Therefore the offering of financial wellness programmes has mushroomed over the years.
The need for such a programme arises due to the spiralling cost of living that has left most employees jobless. This has created enormous stress on their finances resulting in various complications. At the end of the month, some employees are finding it difficult to meet their commitments. Such employees need to be provided with effective financial counselling so that they can start managing their finances more efficiently.
It is not just the senior citizens who require financial wellness. Many employees today are retired. These people require assistance with regards to their retirement plans. Some of them may have pension but they have to make contributions for this. In case the contributions made are unable to meet the expenses, then it results in an increase in the liabilities.
In order to avoid such complications and to keep the whole process of retirement faring smooth, employees need to go through a proper financial wellness programme. This ensures that they do not default in their payments of pension and other benefits. When this is done, the company also enjoys tax breaks as well as other financial benefits. In fact, going through such a programme enhances the longevity of an employee and increases his or her chance of promotion.
The concept of a financial wellness programme is actually not new. It has been around for a long time. However, its use was restricted to companies and institutions with several employees. Today, even smaller organizations and even employees are able to benefit from its advantages. In fact, even the entire workforce can make use of these techniques to stay fit and fine.
Therefore, financial wellness program not only improves the longevity of the employees but also ensures that they do not default on their contributions to their retirement fund. Therefore, small and medium-sized businesses can easily overcome the problem of retirees by attracting the young professionals. Small firms cannot afford to retain older workers. Instead, the best option is to involve these employees in a proper financial wellness program so that they can contribute financially towards the retirements.