Workers spend up to 51 minutes of their workday dealing with personal finance concerns

Concerns about personal finances occupy a significant amount of space within the workday. This is demonstrated by the IV Financial Wellness Study conducted by Marsh. Among the 894 workers surveyed as of September of this year, 54% reported feeling stressed about their financial situation, which harms their productive capacity in a moderate to significant way. Specifically, respondents reported spending an average of 51 minutes of their workday thinking about their financial problems, with a median of 30 minutes. This corresponds to 11% of the productive workday. Two main sources of stress were identified: difficulty meeting monthly commitments and lack of protection against unforeseen events. Regarding the first, 37% reported feeling concerned every month about meeting their obligations, 40% use a line of credit or credit card to make it to the end of the month, and 22% report having recurring difficulties paying their financial products. Added to this is 36% who considered that covering a $1 million emergency would be a significant challenge, and 33% of workers stated that they cannot resolve their financial problems in the short term. Regarding protection against potential health expenses, 40% have a group insurance policy fully funded by their company, 20% have a group insurance policy they pay for themselves, and 5% took out an individual insurance policy on their own. Without that coverage, 28% would find it very difficult to finance their medical expenses, and for 25% it would affect their level of spending, although they could absorb it. Along these lines, the study shows that protection reduces mental burden, since those who pay for part or all of a complementary health insurance policy spend on average 30% less time on their financial worries. There is also a gap in concern based on income, as people whose household earns $2 million or less spend 67% more time on their financial worries than those with higher incomes. "Every minute a person spends calculating how they will pay their bills is a minute that is not available for their work. Companies often measure productivity with operational indicators, but they rarely observe this cost, which does not appear in any report and accumulates day by day," says Joaquín Ramírez, Business Leader of Investment and Retirement at Marsh Chile. 2017 - PHOTO PRODUCTION - MAN - AFFLICTED - TROUBLED - DEBTS - DOING THE MATH - CALCULATOR - CONTRIBUTOR - PENSION SYSTEM - AFP - PENSION FUND ADMINISTRATOR - LOSSES - ECONOMY - SANTIAGO - PUBLISHED - LA CUARTA - CHRONICLE - PAG02 - SANTIAGO - CHILE - ARIEL MORALES MEZA ARIEL MORALES M. Severance pay and pensions In parallel, severance pay appears as a factor that can influence the decision to change jobs. 28% consider it a benefit they expect to receive in the future, 16% know they have it in the event of a possible dismissal, but it is not something they expect to receive, and 14% see it as a possibility they would seek to negotiate. However, 27% do not include it in their planning or financial expectations. Severance pay also has an effect in the scenario of a new job offer. 30% would not consider giving up severance pay an impediment, and 20% would see it as a partial obstacle, subject to other conditions of the position. 22% would try to negotiate a middle ground, while 12% would not accept changing jobs if it means losing that benefit. Regarding retirement savings, the study shows both misinformation and disinterest. Six out of ten respondents stated that they do not know the effect the pension reform being implemented will have on their pension. Regarding Voluntary Pension Savings (APV), only 28% have it implemented in their financial habits, while 26% consider it important but have not implemented it as a habit, and 17% consider it important although they are not clear how it works. In contrast, 13% consider the APV irrelevant. AI as a financial advisor Another aspect that stands out is the search for financial advice. Although family remains the main source of information for making financial decisions (51%), artificial intelligence tools rank second at 33%. This is above information available online and friends (32% each). Banks or financial institutions come in at 31%, financial influencers or finfluencers appear at 12%, while only 3% turn to their employer as a source of financial guidance. Despite this distance, workers do expect a role from their organizations. 41% want their employer to make external advisors available to guide them in financial matters, 29% expect it to provide articles or information on these topics, and 28% value having an internal department dedicated to it. Only 14% prefer that the company not get involved in any way in their personal finances. NEWSLETTER Pulso PM Monday to Friday, 12:30 PM The most relevant news in markets, companies and business: timely information, context and content to make better decisions. By signing up you are accepting the Terms and Conditions and Privacy Policies of La Tercera.