A growing number of employers recognize the importance of supporting the holistic needs of their workforce, with financial wellness as a core pillar of total well-being. These organizations understand that when employees are comfortable with their ability to meet their financial obligations, they are more likely to be productive and engaged at work.
However, new Mercer research has reinforced that women have unique financial challenges that are not yet being adequately addressed.
Financial wellness is frequently used to describe an individual’s current and perceived financial state. Control of day-to-day and month-to-month finances is a critical component of financial wellness, but not the only element that determines one’s financial health.
Women tend to
• worry more about financial matters,
• focus more on short-term financial obligations,
• be less prepared for retirement, and
• not seek financial advice.
How can financial wellness be improved? How can employers help their employees become financially well?
Financial knowledge is not the driver for financial wellness. Mercer’s research shows that confidence or rather financial courage has more bearing that actual financial acumen on a female’s ability to improve her financial situation.