Adopting Financial Wellness Programs Can Reduce Stress and Lead to Better Outcomes in Retirement
BALTIMORE , July 19, 2022 /PRNewswire/ — T. Rowe Award, a global investment management firm and a leader in retirement, today released new research that found financial stress is a predictor of financial well-being. Specifically, pension plan participants who report being stressed by debt save less for retirement than those who are not stressed. These ideas are based on T. Rowe Price annual Retirement savings and expenses study and analysis of its Retirement Behavior Index™, which measures people’s everyday financial behaviors, progress toward the financial goals they set, and how, ultimately, how today’s actions may affect their future retirement.
“The path to a successful retirement is paved through financial well-being,” said Joshua Dietchthought leadership on retirement at T. Rowe Award. “Employers, financial professionals, consultants and archivists are uniquely positioned to encourage the promotion and adoption of financial wellness programs that can reduce financial stress and lead to greater savings and best results at participants’ retreat.”
The financial stress study analysis included an assessment of factors such as stress emanating from debt, budgeting, retirement and non-retirement savings, investment management, and health care costs. Additional search results include:
- Debt, especially unsecured debt, is correlated with financial stress
- Seventy-three percent of younger workers (30 and under) reported moderate to high levels of stress related to budgeting, compared to 40% of older workers (50 and over)
- Women are 26% more likely than men to experience higher levels of financial stress, particularly around debt, budgeting, non-retirement savings and healthcare expenses
- Black and Hispanic workers are 34% and 40% more likely than white workers to experience higher levels of debt stress
- Workers who start saving for retirement early in their working years have higher scores on the Retirement Behavior Index™, T. Rowe Price exclusive framework of financial well-being, than those who start saving later in their working years
ABOUT T. ROWE PRIZE
Founded in 1937, T. Rowe Award (NASDAQ-GS: TROW) is an independent global asset management company with $1.31 trillion of assets under management at June 30, 2022. The company is focused on providing excellence in investment and retirement services for institutional, intermediary and individual investors. Our strategic investment approach, guided by independent thinking and guided by rigorous research, helps clients feel confident in pursuing financial goals. For more information, visit troweprice.com, Twitter, Youtube, LinkedIn, instagramWhere Facebook.
SOURCE T. Rowe Price Group, Inc.