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BofA & Merrill Lynch Presentation on Financial Wellness
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A New Reality: Creating Financial Wellness in Your OrganizationKatie Nedl, Director of Global Benefits, BlackRock
Steve Ulian, Managing Director of Institutional Retirement and Benefit Services, Bank of America Merrill Lynch
WORKPLACE INSIGHTS™
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:
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
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
For Plan Sponsor and Consultant use only. Distribution to any other audience is prohibited.
Blackrock is not an affiliate of Bank of America Corporation
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• What is Financial Wellness?
• A New Reality
• The Role of Financial Benefits
• Case Study: BlackRock
• Key Learnings
What We Will Cover Today3
What Is Financial Wellness?4
HOME
INSURANCE
COLLEGE HEALTH CARE
BUDGETING
When may I be able to retire?How much may I need?
How do I reduce my debt?How do I save more money?
Should I rent or buy? Is it time to refinance?
How much coverage should I have?Do I need an umbrella policy?
How can I prepare for Long Term Care?How will medical expenses affect my retirement?
How much could it cost?What are the ways I can save for college expense?
RETIREMENT HOME
INSURANCE
HEALTHCARECOLLEGE
BUDGETING
Market Volatility
Plan sponsors and employees face an increasingly complex environment for achieving their financial wellness:
A New Reality 5
Changing Demographics
The Changing Face of
Healthcare
Evolving Financial Benefit
Landscape
Source: 1) 2013 Bank of America Merrill Lynch Workplace Benefits Report, 2) 2009 Workplace Financial Education Online Survey
The Role of Financial Benefits6
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
78%
59%
7 out of 10 plan participants said they’d likely use personal finance and investment services if offered through their employer2
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BlackRock is the World’s Largest Asset Manager8
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 95countries
As of March 31, 2013
Financial Wellness9
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.
In the initial months of the “launch”, we accomplished the following :
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.
Financial Wellness10
Re‐packaged and re‐branded a range of resources and
benefits
Rolled out a number of new learning opportunities
around the globe
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
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
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)
Outcome11
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.
Through BlackRock’srelationship 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.
Communication Education and Planning Offers Fulfillment
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.
Attendance to a Financial Wellness learning event in 2012 was approximately 4,000 employees (70%)
The internal Financial Wellness social media space is the
#2most 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)
Measures of Success12
• 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
It’s a Journey
Source: 1) Bank of America Merrill Lynch
Key Learnings
• 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
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.
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Thank You.
Questions?