Many Americans personal finances are under stress. The Pew Charitable Trusts 2015 report, The Precarious State of Family Balance Sheets, found that more than half (55%) of American households can cover less than one months expenses with available liquid savings. Even if the typical middle-income family used retirement and investment accounts, they could replace only four months lost income.
Many factors contribute to financial wellness; one important factor is preparedness for financial change. The Prudential Insurance Company of America defines preparedness for financial change as being protected against risks that are difficult to predict and may have significant financial consequences.During their working years, employees face loss of income due to premature death, illness or injury and out-of-pocket medical and nonmedical expenses. Our metric for financial wellness, the Prutection Score, estimates a group of employees financial preparedness for these risks by considering the resources available to them personal funds and insurance coverage relative to the resources needed.
