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How Well Protected are Employees Against Key Financial Risks?

Employers have a vested interest in promoting the financial health of their employees, who can become less productive when burdened by money worries. Forty-four percent of employees say they worry about finances at work, and 46% admit to spending 2-3 hours per week on personal financial matters while at work.1 One in five admit to skipping work at least once in the past year to deal with financial matters.2

To help address these stresses, increasing numbers of employers are implementing financial wellness programs that provide education and tools related to a wide range of financial considerations, which may include short and long-term saving, budgeting, managing debt, and protecting against financial risks.

To enhance these efforts, Prudential, with supporting research and analysis provided by EY3, has created Prutection ScoreSM, a patent-pending tool to help employers evaluate a key aspect of the financial wellness of their employee populations. Prutection ScoreSM provides employers with measures of how well protected their employee populations are against key financial risks they face: loss of income due to premature death, illness, or injury; out-of-pocket medical and non-medical expenses related to unexpected health events; and outliving assets in retirement.

With these measures, employers now have the ability to identify employees’ financial vulnerabilities, and target educational efforts and employee benefit solutions to the employees who need them most. Moreover, the data analytics capabilities underlying the Prutection ScoreSM tool address some of the analytics needs that may be requisite to implement robust financial wellness strategies.

The opportunities to help improve individuals’ protection against financial risks are vast. In its 2014 Financial Wellness Survey, Prudential found that most American workers are not fully prepared to meet their financial needs in the face of key risks. This paper provides financial protection scores for the U.S. workforce, explores demographic differences in the scores, and provides insights for employers seeking to implement or improve financial wellness programs.

Download How Well Protected are Employees Against Key Financial Risks?

1Purchasing Power, “Financial Wellness: Addressing the “9 to 5” Impact of 24/7 Financial Stress,” 2013.
2Consumer Financial Protection Bureau (CFPB), “Financial Wellness at Work: A review of promising practices and policies,” 2014.
3EY Insurance and Actuarial Advisory Services, 2014.

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