PROVIDENCE – Student debt repayment and environmentally and socially conscious investment options are among the top benefits Fidelity Investments Inc. expects to see employers rolling out in the year ahead.
Fidelity in a Jan. 21 statement outlined the top employee benefit trends for 2022 based on conversations with “thousands of employers” from various industries. Many of the new or enhanced benefit options reflect new attitudes to how employers think about attracting or retaining workers, prompted by labor shortages, increased emphasis on employee wellness and satisfaction, and awareness of diversity and inclusion, the release stated.
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Among the top trends are workplace savings plans with ESG, or environmental, social and governance investment options. At the end of 2020, 1 in 5 plans through Fidelity’s platform offered at least one ESG fund, with prevalence among nonprofit and faith-based organizations. A new U.S. Department of Labor rule that makes it easier for employers to add ESG investment options coupled with research that employees are increasingly interested in ethical investment options suggests the option for these investment funds will become increasingly popular among employers, according to Fidelity.
Also coming into focus this year are new ways for employers to help workers repay student loan debt. More than 4 in 10 companies already offer some type of student assistance, but with federal student loan repayment moratoriums ended and millions of borrowers expected to start paying down their debt in 2022, this will be a top priority for companies to consider.
Other employer benefit trends highlighted by Fidelity include:
- Adding guaranteed retirement income options to workplace savings plans to help older workers convert retirement savings into income streams.
- Dependent-related benefits such as paid leave for caregivers, parent support groups and child care support.
- Emergency fund options that let employees contribute to, then tap into a separate fund other than their retirement savings to cover unexpected financial emergencies.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
