A recent survey by The Guardian Life Insurance Company of America found that out of more than 4,000 employees, 48% said retirement-related concerns were a top source of stress while only 32% reported “good” or “excellent” financial health.

Those concerns included not having enough money to last through retirement and a guaranteed source of income.

The survey results were compiled into Guardian’s annual “Mind, Body and Wallet” report. This year’s says overall well-being among Americans remains low, “highlighting the pressing need for additional well-being support and resources, especially around retirement planning and personal finance stressors.”

One-third of survey respondents self-reported “good” or “excellent” well-being.

Mental and physical health were rated as “good” or “excellent” by 36% and 37% of Americans, respectively.

Compared to 2023 Guardian findings, well-being for each category saw a four percentage point year-over-year increase.

“Despite being a primary source of stress for Americans, just half say they know how much money they will need in retirement and only 36% say they are ‘very good’ at managing their finances,” Guardian said of this year’s results. “Close to half of Americans said they would face financial hardship without their workplace benefits.

“Fortunately, many employers recognize the valuable role benefits play in supporting financial and overall well-being, with the majority saying that addressing and improving their employees’ financial (74%), physical (66%), and mental (71%) health is very important.”

The report also found, especially during pivotal life moments, that many Americans have interconnected mental, physical, and financial well-being needs.

For example:

• • “Seventy-three percent with high financial health also rated their emotional health as ‘good’ or ‘very good.’ On the other hand, 82% with low financial health also self-reported poor emotional health;
  • “Thirty-four percent reported good work-life balance. This likely contributed to the 33% increase in the number of workers who reported feeling burnt out.”

For the first time in several years, Gen X respondents reported worse financial well-being than Gen Z, potentially given concerns around inflation and economic uncertainty as they approach retirement, Guardian said.

Across the board, single parents self-reported significantly lower well-being scores than partnered parents, with 27% reporting good physical health versus 43% of partnered parents. Twenty-six percent cited good mental health versus 43% and 18% recorded good financial health versus 40%.

Between 2020 and 2023, Guardian said it saw a 215% increase in short-term disability claims due to postpartum depression.

Among Sandwich Generation members, including parents taking care of parents, roughly 4 in 10 reported low mental (43%) and financial (41%) well-being. Thirty-one percent reported low physical health.

“The study reaffirmed the outsized impact financial health has on overall well-being, with particular influence on mental and physical wellness,” said Andrew McMahon, Guardian CEO and president, in a news release. “While we were encouraged to see a small year-over-year increase, sustainable improvement to well-being will require a continued focus on education, empowerment, and solutions that meet people where they are.”

During a 2023 webinar, Rachel James, Torque Financial Group founder, recommended employees always consider the future when planning finances. For example, when will you buy your first home? If you own a home, are you thinking about home improvements?

James also said it’s helpful to split financial planning and security into five categories: saving, spending, growing your money, protecting your money, and charitable donations. Saving, she said, is typically the most difficult and requires “creating a habit so that you’re slowly easing into this idea of creating savings.”

“The sooner you start, the more impact you’ll make on your future,” James said.

Saving money is also made easier by tracking monthly spending, she added. Her research has found that 20% of income should go toward savings and an emergency fund first then toward retirement, keeping IRS retirement plan yearly contribution limits in mind.

One retirement plan option specific to collision repair businesses is the Society of Collision Repair Specialists (SCRS) Multiple Employer Plan (MEP) which offers employees the opportunity to make Roth 401(k) contributions.

As K&M Collision Vice President Michael Bradshaw pointed out during SCRS’ IDEAS Collide Showcase, workplace culture also plays a part in financial well-being.

“We’re used to thinking that salaries and benefits get the best talent in collision repair. We wring our hands over how we’re going to attract
new technicians, and ‘how can we pay more because we can’t be competitive in the job place?’ But we never talk about culture, and to me, that’s really the secret weapon. It’s the force behind attracting and keeping staff; keeping them happy, boosting morale, and performance.”

“We’ve got to provide work-life harmony,” Bradshaw said. “Balancing work and personal life is the key to long-term satisfaction and a healthy and happy team.”

Opportunities for career progression are key as well, he added.

“That shows our commitment to each employee’s individual success in their long-term growth and future,” Bradshaw said. “And above all else — this is where I feel like a lot of companies really miss the mark — personal growth. Everybody’s so consumed with figuring out how they can grow people within their four walls, they don’t think about how they can grow that individual outside of their company.

“By supporting their personal passions and learning, it enriches our team’s diversity and creativity. It drives the company in unexpected and innovative ways.”

The image below highlights some employee benefits that K&M offers.

Financial wellness offerings provide “tools and knowledge for financial literacy ensuring a bright and stable financial future for our technicians,” Bradshaw said.

“With 76% of American households living paycheck to paycheck and 71% identifying money as a significant cause of stress, we don’t ever want our employees to become one of those in that statistic,” he said.

Images

Featured image credit: Milan_Jovic/iStock

K&M Collision team photo (SCRS YouTube screenshot)