It may no longer be enough for employers to simply provide employees with education about savings and retirement. According to a recent Bankrate survey, 63% of Americans cannot manage a $500 financial emergency.1 A do-it-yourself approach to improving spending and saving behaviors assumes that employees have the skill and initiative to address their own financial condition.
Six8 Advisors believes that many people could benefit from working with an advisor that helps them create a plan, monitor its progress, and serve as an ongoing financial resource. This seems simple, but fee-based advice is often out of reach because the financial advisory community excludes potential clients by imposing large hourly rates or upfront planning fees. The result is that the households that often need the most help are left to figure it out on their own.
The Six8 Advice @ Work program provides a cost effective financial wellness and planning process for clients willing to engage with their financial future. Employers are in a unique position to provide access to advisors by taking an interest in their employees. We often ask our employer clients, “Is your retirement plan successful?”. Does your plan provide the ability for your employees to retire on their own financial terms? For decades many employers saw their role as simply a plan sponsor when in fact they could have done more by offering their employees access to financial support.
Employees need to take action now. With volatility in the financial markets increasing, and some economists projecting an average balanced portfolio return in the 4% - 5% range2, then employees are faced with more than just a retirement issue, they are faced with a lifestyle issue. American households need to get a grip on spending and saving. Employers can play an important role in providing access to much needed financial advice as part of their employees retirement plans.
2 Vanguard Research Paper “ Asset Allocation In A Low-Yield And Volatile Environment” September 2011