Financial Health Assessment
- Health costs related to prevention are lower than health costs related to treatment. To the extent that financial and health fitness are related, employer costs can be lowered by taking a prevention orientation rather than a treatment orientation.
- Data from an employee physical health and financial fitness assessment will enable employers to design an evidence-based benefit plan. To maintain confidentiality, employee assessments can be administered and shared with relevant parties such as third party administrators.
- Taking the physical and financial assessments together will highlight the employer’s 360 ° focus on employee wellbeing. The focus on reducing corporate health expenses has encouraged more employers are taking a holistic approach to employee wellbeing.
- Employees will be better prepared to revise their asset allocation in their retirement fund. Health and financial fitness assessments are designed to empower employees with the information and tools to make better decisions.
- A physical health and financial fitness assessment may inform the timing of employee retirement. Lack of knowledge about employee physical health and financial fitness will make it difficult for employees to plan to retire earlier due to unexpected health problems or later due to insufficient retirement funds.
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About the Financial Literacy Center
The FLC's mission is to develop and test innovative programs to improve financial literacy and promote informed financial decisionmaking.
With support from the Social Security Administration, the Center was established in October 2009 by the RAND Corporation, Dartmouth College, and the Wharton School of the University of Pennsylvania in order to develop educational tools and programs that help individuals prepare for their long term financial stability.
About the Program
Presented by the Financial Literacy Center, a joint center established by the RAND Corporation, Dartmouth College, and the Wharton School of the University of Pennsylvania in order to develop educational tools and programs that help individuals prepare for their long-term financial stability.
Success Stories
Take a look at how companies like Mandarin Oriental Hotel Group and Nationwide have had success with automatic enrollment and automatic escalation.
The Dartmouth Project
Increasing employee participation in retirement plans has always been a challenge.
However, researchers at Dartmouth College, through a grant provided by the National Endowment for Financial Education, show that specific low-cost strategies succeed in boosting employee participation rates.
