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Plenty of Americans struggle with money. When they do so on the job, employers apparently pay the price with eroding productivity.

Global consultant Mercer recently estimated that workers spend roughly 150 hours annually on average, nearly three hours a week, worrying about money issues. This could be costing employers up to $250 billion in lost wages, Mercer said.

Whether those numbers are exaggerated or not, they do suggest the problems associated with financial literacy are more widespread than commonly thought.

Employer-provided financial wellness or well-being programs, which are distinct from more traditional workplace benefits including 401(k)-style retirement plans, can help. Such programs often provide budgeting assistance and guidance tackling specific problems such as student-loan repayment, credit management, learning about non-retirement savings vehicles and gaining access to loans.

The study, conducted in 2016 but publicized in more depth this month by Mercer, included feedback from more than 3,000 workers.

Respondents said they spent 13 hours a month on average worrying about financial matters, though the median or midpoint figure was considerably lower, around five hours a month. The survey didn't ask workers how they actually spent work time worrying about finances — whether in seeking advice from co-workers, checking online for information, taking time off from work to deal with problems or in other ways.

Money issues that people worry about, according to the study, include monthly expenses, saving for retirement, managing credit-card debt and planning for or meeting long-term care costs.

The study made a distinction between employers' simply supplying information compared to actually helping them gain confidence in handling financial matters. People who lack confidence or courage often are paralyzed from taking even basic steps that could improve their finances, according to Mercer. Employers can encourage these workers to take small actions that build confidence gradually.

Aside from improving productivity, the programs can help employers by making it easier to attract and retain employees.

"If you are your competitors all have the same 401(k) plans and health benefits but you offer a way to help handle something like payday loans, that can make a big difference," said Neil Lloyd, head of Mercer's financial-wellness research in the U.S.

Financial-wellness programs are gaining in popularity, though they still trail well-being programs centered around physical/medical problems and those dealing with emotional health, according to Fidelity Investments. In a survey this year of mostly larger companies, 84% of the employer respondents said they make some type of financial-security programs available, up from 76% in 2016. 

"As these programs evolve, employers are embracing a broader definition of well-being," said Adam Stavisky, a Fidelity senior vice president in benefits consulting. Many of the new employer initiatives involve a blend of "financial, physical and social/emotional programs to provide maximum support" for employees. They're often conducted in seminars, especially during lunchtime. Mortgages, estate planning and insurance are other financial topics commonly addressed.

Fidelity cited BASF, the giant chemical company, as an example of a company offering a comprehensive wellness program for employees.  Companies with similar programs include American Express, Booz Allen Hamilton, Cerner Corp., CNO Financial, Eaton Corp., Humana and Kohl’s Corp.

General stress reduction

Corporate downsizing, rapid advances in technology and other factors have generated a lot of general stress for workers — not just financial anxiety. Employers in recent years have started to pay more attention to general stress as a workplace wellness issue, up there with actual injuries and illnesses, said Wendy Lynch, a Phoenix-based business consultant who focuses on human-capital issues.

For example, she said more employers are helping their workers improve resilience, which involves learning to monitor and control emotions, solve problems better and “stay somewhat optimistic when things are going bad.” Lynch cited communications giant Comcast as a leader in this regard.

Lynch also said some employers are putting more focus on soft job skills such as helping workers learn to listen better in an age where email and other digital forms of communication have become widespread yet sometimes lead to misinterpretation and conflicts. Some employers also are trying to spot patterns of stress, disability and sick time taken by more closely analyzing how often it's reported by people in specific jobs or dealing with specific supervisors.

Studies indicate up to 10% of total employer-borne health expenditures are stress-related, Lynch said. “If you have a workforce that’s stressed and not sleeping well, you won’t perform as well as a business, and you risk losing your best performers.”

The most common well-being programs are those tackling physical issues such as smoking or weight management, according to the Fidelity survey, with emotional/stress issues next and financial problems third.

Retiree health costs

Health and medical expenses are among the biggest outlays Americans face. To help people understand and plan for these costs in retirement, Fidelity annually estimates what a 65-year-old couple, retiring in the current year, might need to spend on these expenses throughout retirement. The 2017 estimate, released Aug. 24, is $275,000, up from $260,000 last year.

Fidelity's estimate includes expenses associated with Medicare premiums, Medicare co-payments/deductibles and out-of-pocket prescription drug outlays. It assumes enrollment in Medicare but doesn't include the added expenses of nursing home or long-term care assistance. 

The cost estimates assume men reaching age 65 will live until 86 on average, while women will live to 88.

One recent trend is that more employers are taking an active and broader role helping workers manage health and well-being and providing benefits that can help improve health and possibly lower costs during retirement.

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For example, more companies are offering health savings accounts, allowing people to set aside money for today’s health-care expenses and invest for possible medical costs in retirement, Fidelity said. The funds in such accounts can accumulate long-term.

Reach Wiles at or 602-444-8616.


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