Empowering financial wellness and retirement readiness for employees with disabilities: An NDEAM roadmap for employers

By Deltra Hayes, VP, Benefits, Voya Financial

In today’s rapidly evolving workplace, employers face a unique opportunity — and responsibility— to foster financial wellness and retirement confidence for their employees with disabilities. Although the number of adults with disabilities is growing, they still are an underleveraged segment of the workforce and are seeking support from their employers to help them achieve financial stability and reach long-term goals.

As data from outside sources and Voya’s Consumer Insights research reveals, employees are especially uncertain about their short-term finances and their ability to save for their futures. Case in point, more than half of people with disabilities say their retirement plan savings are their only significant emergency savings.¹ But their employers are in a unique position to help. 

Economic anxiety and daily strain

People with disabilities face unique and compounding daily financial stresses:²

• Rising costs of everyday necessities (groceries, clothing, etc.)
• Approaching retirement (feeling it’s too late to save more)
• Credit card and consumer debt
• Concerns about job/income loss
• Student loan repayments
• Caregiving responsibilities

These challenges are exacerbated by broader economic uncertainty and inflation, which for people with disabilities, can lead to higher levels of economic anxiety and less control over their finances:³

• 49% of people with disabilities rate their economic anxiety as severe or high (vs. 29% of the rest of the population).
• 69% of people with disabilities live paycheck to paycheck (vs. 47% of others).
• 67% of people with disabilities are worried about keeping up with the cost of living (vs. 48% of the general population).

Debt and savings

Debt is a major concern for people with disabilities:

• 47% of people with disabilities are very or fairly worried about getting out of debt.⁴
• 42% of people with disabilities say their level of debt is ruining their quality of life.⁴
• 73% of people with disabilities are not able to save as much for emergencies as last year.⁵
• 68% of people with disabilities say debt has reduced their ability to save for retirement.⁵

Retirement readiness: barriers and priorities

• 60% of people with disabilities are very or fairly worried about having enough money to retire on (vs. 45% of others)⁶
• Only 67% of people with disabilities know where they stand in terms of being financially prepared for retirement (vs. 73% of others)⁶
• 56% of people with disabilities say their retirement plan savings are their only significant emergency savings (vs. 48% of others)⁷
   

Best practices and action steps for employers

1. Foster a culture of inclusion and disclosure
   • Make it safe to self-disclose: Employees who disclose their disability are 30% more engaged and satisfied.⁸ Foster a culture where disclosure is encouraged and supported.
   • Train managers and HR: Ensure leaders understand the value of disclosure and are equipped to support requests for accommodations.
2. Rethink accommodations
   • Challenge cost myths: Most accommodations are low-cost or free.⁹
   • Provide meaningful accommodations: Listen to employees’ needs and ensure accommodations are effective.
3. Prioritize financial wellness and education
   • Offer targeted financial education: Focus on debt management, emergency savings, and retirement planning tailored to the needs of people with disabilities and caregivers.
   • Promote voluntary benefits: Disability insurance, health savings accounts (HSAs), and employer support for student loan repayments are highly valued.¹⁰
   • Consider providing workplace emergency savings options: These can provide a critical safety net for employees with disabilities.
4. Optimize retirement plan design for inclusion
   • Automatic enrollment and escalation: Helps ensure broader participation, especially for those who may be less likely to opt in on their own.¹¹
   • Expand eligibility: Consider including long-term, part-time employees and those with non-traditional work arrangements.
   • Consider leveraging pooled employer plans (PEPs): PEPs reduce costs and administrative costs, making it easier for smaller-to-midsized employers to offer robust retirement benefits.

Conclusion: A call to action

Disability inclusion can be a strategic advantage for companies as a whole. By understanding the unique financial realities of people with disabilities in your workforce, optimizing plan design, and fostering a culture of inclusion, employers can unlock the full potential of their workforce, drive better business outcomes, and help all employees achieve financial security and retirement readiness.

The journey toward true inclusion is ongoing. By embracing best practices and leveraging the latest research, organizations can lead the way in building a more equitable and prosperous future for everyone.