2024 Financial Wellness Trends (2024)

March 14 2024

Evolving Priorities Offer New Opportunities to Promote Financial Wellness in 2024

A recent survey reveals the future of financial wellness and workplace savings, and how employers and advisors can work together to address evolving employee priorities. Vestwell’s 2024 Saving Trends Report identifies four emerging trends for 2024 that emphasize a growing need for more comprehensive financial wellness solutions:

• Savers are increasingly seeking more personalized financial wellness solutions that address their specific needs and goals.
• Workplace retirement plans have moved from “nice-to have” to “must-have” status. Eighty-five percent of respondents expect their employer to offer retirement benefits and 89% would be more likely to stay with an employer that did so.
• Demand continues to grow for more comprehensive and inclusive workplace financial wellness benefits, such as emergency savings, education savings (such as 529 plans) and health savings accounts (HSAs). There is also a high degree of interest in tools and resources to help them manage and pay off credit card and other high-interest debt.
• Employer-sponsored education savings benefits are gaining momentum in response to student debt challenges Ninety-three percent of respondents with student loans reported that their debt affected their ability to save and 74% would be more likely to stay with an employer that offered student loan-related benefits.

The report suggests that employers can become champions of holistic financial wellness by integrating these solutions into their benefits package. Employers may also want to consider financial wellness solutions that support employees who are under financial stress due to their responsibilities as caregivers, as well as those who have disabilities or special needs of their own.

Survey Spotlights ABLE Savings Accounts

ABLE (Achieving a Better Life Experience) Savings Accounts are state-sponsored programs designed to help individuals with disabilities save money without affecting their eligibility for public assistance programs. The accounts are offered by 46 states, and residents in states without a program can participate in another state’s program.

Despite their broad availability and appeal, 84% of the survey respondents have never heard of ABLE Savings Accounts. However, among the survey respondents who have an immediate family member with a disability, 77% say that having an ABLE Savings Account is at least somewhat important to their financial situation.

How ABLE Savings Accounts Work

An ABLEaccount is a tax-advantaged savings account available to individuals diagnosed with significant disabilities before age 26. Contributions can be made to the account by the beneficiary, friends, or family members. The total annual contribution cannot exceed a certain limit, which is pegged to the gift tax exemption ($18,000 in 2024).

Employees can set up a direct deposit into their ABLE account (or their family member’s ABLE account). Contributions to such accounts are not tax deductible, but savings grow tax-free and distributions taken to pay for qualified disability expenses are also tax-free. Employers may make contributions to the ABLE account as well.

The survey notes that in addition to being a practical financial solution, ABLE Savings Accounts present an opportunity for employers to add innovation, diversity, and inclusion to their workplace culture. It’s also a great opportunity for advisors to provide education about these savings vehicles and help employers promote them.

Vestwell. (2024). 2024 Saving Trends Report. Vestwell

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