We’re finally in a new year, 2021 — and with that we can all
hope to move past arguably one of the most impactful and memorable years of our
lifetimes. But in that year, many of us learned a lot. Yes, 2020 brought its
challenges, but with those challenges came an opportunity for change and growth
for many individuals, particularly when it comes to the importance of health
and wealth.
It’s no secret that the COVID-19 pandemic has put a
spotlight on the shifting priorities of Americans. According to the results of
a new survey from Voya, a significant amount (73%) of Americans agree that
material goods matter less given their experiences with the COVID-19 pandemic.
Even more, a majority (75%) of Americans have become more focused on their
mental health and emotional well-being. This shift in priorities has also
brought to light a resource for support that many working Americans may not have
appreciated as much pre-COVID: their employer.
Maintaining a healthy balance when it comes to both
financial and mental well-being is becoming increasingly important. This
includes things like retirement savings, emergency fund support, and access to
voluntary benefits such as protection for unexpected critical illnesses,
accidents or hospital stays — particularly in light of the global health
crisis. And individuals are seeing employers as a valuable resource here. The
same survey found more than half (60%) of working individuals have grown a new
appreciation for their employer given their experiences with COVID-19. To be
sure, households will need to think about multiple sources of support for their
health and wealth needs, but their employer is already a key provider of many
of these. So when it comes to seeking employer support, where can you look?
Emergency Savings are Critical
If 2020 taught us one thing, it’s that the importance of
emergency savings has never been greater. With COVID-19 causing unprecedented
economic disruption, recent industry data shows that up to 46 million Americans
have depleted their emergency savings. Whether realizing the need for having
such funds became apparent due to the financial toll of the past few months or
simply as an “eye opener” for many who realized the need for emergency funds is
not farfetched, consider talking to your employer about what opportunities they
might offer to help.
With more than six in 10 individuals agreeing that they are
now better prepared for a future emergency (66%) and are saving more money to
cover possible unexpected expenses (62%), it’s clear that more employers will
look for more opportunities to help their workforce in this area.
Keep Focused on Retirement
Yes, these are extremely challenging times for both
employees and employers, but keeping a focus on the “end game” and your future
savings can help as you look to weather the storm. The good news is, despite a
year of financial uncertainty for many, still more than half of individuals
(55%) are more focused on planning for retirement. If it’s available to you,
remember to look to your employer for additional opportunities to save, such as
taking advantage of a matching contribution through your workplace retirement
plan. You might also look to see if automatic escalation is available to help
get back on track with your saving.
This past year as a result of the pandemic, many individuals
were also given the flexibility to withdraw savings through the Coronavirus
Aid, Relief, and Economic Security (CARES) Act, which eliminated early
withdrawal penalties and increased the loan amounts for workers dealing with a
COVID-related hardship. But it’s important to remember that those who leveraged
this additional flexibility will also need a plan to replenish those savings
over the years to come. Perhaps also those who took a loan or hardship and did
not use the entire distribution should now consider what opportunities under
the CARES Act remain to be able redeposit the unused amount back into a defined
contribution plan.
Keep that Benefits Enrollment Statement Handy
It wasn’t that long ago that we all signed up for our 2021
benefits. This includes health care, dental, vision, and many other common
benefits that employers offer. If you are like many, you took the time last
fall to consider making some changes, and that’s great. In fact, recent Voya
research also indicates that more than half of working and benefits-eligible
individuals (56%) spent more time reviewing their voluntary benefits options/coverage
than they did during their previous year enrollment period. Either way, don’t
forget what you signed up for and the value those offerings can provide in
2021. Health savings accounts and voluntary benefits like accident insurance or
hospital indemnity insurance and other employer support offerings can fill
important gaps in health care insurance. What’s more, this can help absorb
costly medical costs or other living expenses you might encounter this year —
all the while, keeping your focus on saving for retirement intact.
Don’t Forget Work-Life Balance
With many of us continuing to work from home, and having the
flexibility to do so, the good news is more individuals are also “making the
most of it.” More than half (60%) of working Americans say they have more
work-life balance than prior to COVID-19; while just over half (59%) have noted
becoming healthier through diet or exercise.
The reality is, though, without commute times and lunch
breaks in the cafeteria, working from home can become all-consuming. It’s
important to remember to take the time you need to allow for exercise, screen
breaks or just stretching your legs — and your employer should support this. We
cannot forget that most of us were asked to uproot our everyday lives and become
more than just employees, such as taking on the role of both full-time teacher
and employee, and that’s just during the 9-to-5. Others might be struggling
with what the pandemic has caused when it comes to decreased activities for
socialization or the inability to see their loved ones. So while financial
needs such as retirement and emergency savings will become increasingly
important, you might also consider seeking out offerings such as employee
assistance programs.
While 2020 and the impacts of COVID-19 have taught us many
things, perhaps most important is that our shifting priorities are emphasizing
the importance of workplace holistic wellness offerings. So if you’re employed,
be mindful of what your employer might offer to provide support. While it may
not have been a consideration before, there is no better time like the present.
After all, hindsight truly is 2020.
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