In today’s world, financial wellness has become a growing concern for employees. A survey showed that 59% of employees said financial matters are the most significant source of stress in their lives. As a result, employers are now trying to help their employees achieve financial wellness.
Business owners can help their employees achieve financial wellness by leveraging the Secure 2.0 Act. This Act was signed into law in late 2022 and developed dozens of new retirement-related provisions. It addresses additional issues related to retirement and savings that were not part of the original Secure Act of 2019. The Secure 2.0 Act creates new flexibility and accessibility to help individuals plan for a more secure future.
The Benefits Of Leveraging Secure 2.0
By using the Secure 2.0 Act, employers can offer their employees access to financial advisors who can help them with everything from creating a budget to investing in their retirement accounts. Consider the following benefits of the Act:
- Offering financial planning and advice services
One of the critical ways Secure 2.0 can help improve employee financial wellness is by offering financial planning and advice services. These services can help employees make better financial decisions by giving them the information they need to make informed decisions.
2. Encouraging savings
Secure 2.0 helps improve employee financial wellness by encouraging savings. The platform can help employees set up automatic contributions to their retirement accounts and provide tools and resources to help them save for other financial goals.
3. Provides debt management resource
Debt is one of the biggest barriers to achieving financial wellness. With Secure 2.0, employers can offer their employees resources to help them manage their debt. This can include debt counseling services, debt consolidation options, and debt management tools.
4. Educating employees on financial wellness
Finally, Secure 2.0 also educates employees on the importance of financial wellness. Employers can offer financial wellness workshops and webinars covering various topics, from budgeting to investing.
Why It Matters
The Secure 2.0 Act can be a valuable tool for employers looking to improve their employees’ financial wellness. If you’re a small business owner looking to help your employees save more, you’ve come to the right place. While Secure 2.0 is an excellent resource, partnering with a professional employer organization (PEO) such as GMS is another excellent option.
Offering a retirement plan to your employees helps you with the following:
- Recruit more qualified employees
- Offers you additional opportunities for tax savings
- Retain valuable employees
However, retirement plans come with a lot of complexity and risk. Fortunately, GMS helps cut costs, reduce stress, save time, and offer the benefits your employees need. GMS is here to provide guidance on the best plan for your employees. At GMS, we offer our clients a profit-sharing 401(k) plan. This gives small business owners flexibility in how much they contribute to their employees’ 401(k) accounts. By implementing a profit-sharing plan, you show your employees that they’re critical to your company’s success by rewarding them for their hard work. Contact us today to learn more.