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Creating Financial Wellness in Your Organization | BAML

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BofA & Merrill Lynch Presentation on Financial Wellness

BofA & Merrill Lynch Presentation on Financial Wellness

Published in: Economy & Finance, Business

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  • 1. WORKPLACE INSIGHTS™  A New Reality: Creating Financial  Wellness in Your Organization Katie Nedl, Director of Global Benefits, BlackRock Steve Ulian, Managing Director of Institutional Retirement and Benefit Services,  Bank of America Merrill Lynch
  • 2. 2 Disclosures Bank of America Merrill Lynch is a marketing name for the Retirement Services business of Bank of America  Corporation (“BAC”). Banking activities may be performed by wholly owned banking affiliates of BAC, including  Bank of America, N.A., member FDIC. Brokerage activities may be performed by wholly owned brokerage affiliates  of BAC, including Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker‐dealer and  member SIPC. Merrill Edge® is available through MLPF&S, and consists of the Merrill Edge Advisory Center  (investment guidance) and self‐directed online investing. Investment products: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value Certain associates are registered representatives with MLPF&S and may assist you with investment products and  services. Unless otherwise noted, all trademarks and registered trademarks are the property of Bank of America  Corporation. © 2013 Bank of America Corporation. All rights reserved.  |  AR4FF6F1 |  INT‐04‐13‐2685.B For Plan Sponsor and Consultant use only. Distribution to any other audience is prohibited.  Blackrock is not an affiliate of Bank of America Corporation
  • 3. 3 What We Will Cover Today • What is Financial Wellness? • A New Reality • The Role of Financial Benefits • Case Study: BlackRock • Key Learnings
  • 4. 4 What Is Financial Wellness?  When may I be able to retire?  How much may I need? RETIREMENT  How do I reduce  my debt?  How do I save  more money? BUDGETING BUDGETING COLLEGE COLLEGE  How much could it cost?  What are the ways I can  save for college expense?  Should I rent or buy?  Is it time to refinance? HOME HOME INSURANCE INSURANCE  How much coverage  should I have?  Do I need an umbrella  policy?  HEALTH HEALTHCARE CARE  How can I prepare for Long  Term Care?  How will medical expenses  affect my retirement?
  • 5. 5 A New Reality  Plan sponsors and employees face an increasingly complex environment for  achieving their financial wellness: Market  Volatility Changing  Demographics The Changing  Face of  Healthcare Evolving  Financial  Benefit  Landscape
  • 6. 6 The Role of Financial Benefits 78% Feel that the financial benefits they participate in  at work make them more financially secure1 Report they need help managing retirement  savings – but only 21% seek education1 59% 7 out of 10 plan participants  said they’d likely use personal  finance and investment   services if offered through  their employer2 Source: 1) 2013 Bank of America Merrill Lynch Workplace Benefits Report, 2) 2009 Workplace Financial Education Online  Survey 
  • 7. 7
  • 8. 8 BlackRock is the World’s Largest Asset Manager Our mission is to create a better financial future for our clients by building the  most respected investment and risk manager in the world. • $3.94 trillion in assets under  management (AUM) • 10,600 employees in more than  74 offices in 30 countries  • Over 1,600 investment  professionals in 21 locations • Clients based in more than 95 countries As of March 31, 2013
  • 9. 9 Financial Wellness We launched Financial Wellness in an effort to help employees answer the question:  “So what do I do with my money?”  ACCESS LEARNING EXPERTISE RETIREMENT PERSONAL INVESTMENTS COLLEGE SAVINGS FINANCIAL WELLNESS BlackRock has always believed we have a special responsibility to help our  employees – and their families – build a better financial future.
  • 10. 10 Financial Wellness In the initial months of the “launch”, we accomplished the following : Re‐packaged and re‐ branded a range of  resources and  benefits  Rolled out a number  of new learning  opportunities  around the globe  Brought together the Firm’s financial and  investment resources, educational programs, and  benefits in one place – our new Financial  Wellness pages accessible though our HR portal – to help employees learn more about the  resources available to them and continue  planning for their financial future Made these  valuable resources  & benefits available  to immediate family  members, where  possible Used Financial  Wellness as a  spring‐board for  communicating the  larger Total Rewards  picture to  employees Opened the lines of  communication for  U.S. employees  through an internal  Financial Wellness  social media space Increased  awareness to help  employees better  understand the  value of BlackRock  offerings (based on  direct employee  feedback) But there was still something missing… employees were looking for more direct  guidance on a one: one basis. We turned to Bank of America Merrill Lynch to  see what we could develop together.
  • 11. 11 Outcome Education and Planning Offers Communication  Driven by BlackRock to highlight the integration of the benefits provided through Institutional Retirement & Benefit Services team with the services provided by the rest of Bank of America Merrill Lynch.  Executed through the Retirement and Benefit Contact Center to connect with BlackRock employees as they responded to communications as well as proactively reaching out to employees to make them aware of the benefit. Fulfillment  Through BlackRock’s relationship with Merrill Edge® Financial Solutions as well as Merrill Lynch Wealth Management Financial Advisors, the tools and resources available to retail clients are brought to plan participants as well.
  • 12. 12 Measures of Success Attendance to a Financial Wellness learning event in  2012 was approximately 4,000 employees (70%) The internal Financial Wellness social media space is the  #2 most trafficked site for 6 months running 97% participation in our 401(k) plan with account  balances of 3x the average American and 2x our  industry peers1 Employee opinion survey results (conducted in Dec  2012) show a highly favorable response to the  question about providing benefits that meet their needs  (18 points above the financial services norm) Source: 1) Bank of America Merrill Lynch It’s a Journey • We’re continually looking  for new and innovative ways  to incorporate financial  wellness into our  employee’s daily lives • The Financial Fitness Challenge  in January 2013 • Retirement “check‐ups” planned  for June 2013 • Communication is key – you’re probably doing a lot  of the things we are today,  but talking to your partners  about your goals and  communicating things  differently to your  employees generates new  value 
  • 13. 13 Key Learnings HR professionals should consider a range of approaches and services that align to  different employee behavior patterns to achieve broad plan success and employee  financial wellness. • There is no one answer or magic solution to get employees engaged and on the  road to financial security  • Many of the challenges BlackRock faced are true across most organizations • Stronger relationships needed between employer/employee/provider • Tailor plan design to fit needs of employees
  • 14. 14 Thank You.  Questions?