WHY THIS MATTERS?
Are you prepared or doing all you can to prepare the resources needed to last through lengthy career transitions?
- Workers in the U.S. are feeling worse about their finances, job prospects, and career outlooks, the lowest in five years. Source: LinkedIn Market Research
- While some have benefited from the American economy, we are seeing widening economic and income inequality that is not inclusive. Today, the top 10% of Americans own 88% of the stock market, the next 40% own 12%, the bottom 50% just have debt. We have two Americas now. Last year, Americans took more European vacations than they had in history. They also were using food banks more than they had in history. Source: U.S. Treasury Secretary Scott Bessent, 4/4/2025
- Meeting someone’s need first requires us to step into the mess with them to have the ability to relate while placing your passion ahead of your own comfort. “Let us not grow weary in doing good, for at the proper time we will reap a harvest if we do not give up. Therefore, as we have opportunity, let us do good to all people.” Source: Galatians 6: 9-10
Pursuing stability through financial security in America today is a challenge. There is growing income inequality. Too many Americans are living paycheck to paycheck. Many are over-extended in their personal budget, have crushing amounts of debt, find affordability to be a challenge, and aren’t seeing wages increase or the type of jobs being created enough to feel secure.
A large percentage don’t have much personal savings to cover even a $400 emergency. Few have life insurance, short and long-term disability, long-term care coverage, and a retirement plan with enough value to last.
Money is a source of stress for many families. It also can hold us hostage to harmful financial, employment, and personal relationships.
While many firms are focused on addressing these important issues, Avison Strategies sees potential in using the employee benefit system, where most employees choose to turn to for financial support, to advance new novel benefit options to improve financial security and ease peace of mind.
SOLUTIONS
Job security is one of the highest stressors faced by employees as indiscriminate and subjective firings, layoffs, and AI replacing jobs are often cited. With TRU unemployment hovering around 25%, it is no wonder people are anxious and the underlying economy is fragile.
Avison Strategies can work with your company to setup voluntary benefit plans designed to provide peace of mind solutions and ease the economic uncertainty affecting your workers in the following ways:
- Private Supplemental Long-Term Unemployment Insurance. It is taking much longer for job seekers to find new roles which require finances to be stretched thin. The current unemployment insurance (UI) system is funded through employer-paid taxes and administered by local agencies. Average weekly benefits are often insufficient to replace enough income to provide for basic needs. Avison Strategies is working with insurance companies to underwrite policies that allow employers to offer employees a voluntary benefit or direct to employee options to buy plans that fit their needs and supplement UI payments if they are faced with a prolonged career transition or underemployment.
- Payment Protection Insurance. People often worry about how they will pay for large expenditures in the event of a financial emergency. Insurance products on the market today allow for coverage to pay for rent or mortgage payments temporarily if someone involuntarily loses their job. Many creditors providing auto loans, leases, and credit cards also offer payment protection plans that employers could help their employees purchase through a voluntary benefit.
- Nonprofit Debt Management. Some employees have large amounts of credit card debt that impact their worry and productivity. Many nonprofit debt management organizations exist, and are regulated at the state level, to help setup plans to pay off this debt over a shorter amount of time by negotiating reduced interest rates, for a small monthly maintenance fee. Employers could help facilitate these arrangements and/or provide assistance to cover those fees.
- Student Loan Debt Repayment. Recent changes to federal law (P.L. 119-21) now allow employers the permanent opportunity to pay off student loan debt of their employees and receive a tax credit under Sec. 127.