How inclusive principles can transform financial wellness

In a time where financial independence is increasingly prioritized over traditional retirement, the need for an inclusive-focused approach to financial planning has never been more critical. I recently spoke with Jacque Reardon, Head of US Marketing at Franklin Templeton, who offered insights into the evolving landscape of financial independence—drawing on data from the company’s annual Voice of the American Workplace (VOTAW) survey.¹

In our conversation, Jacque highlights trends and underscores the necessity of integrating inclusive principles into financial strategies to address the unique needs of a diverse and multi-generational workforce. Learn more about our discussion in the following highlights.

Financial independence grows in significance

In recent years, the idea of being financially independent has become more important. This is shown by the VOTAW data, which rose more than 7% this year. I think it’s definitely been a cornerstone of our research over the last couple of years that folks are actually migrating more toward that idea versus perhaps traditional retirement or other financial wellness,” Jacque explained.

However, many individuals have noted that achieving financial independence is becoming more elusive. “Sadly, the likelihood that people feel like they’ll actually reach financial independence has gone down,” she noted.

The VOTAW study found fewer workers were confident about the likelihood of achieving financial independence, reflected in a 6% decline year-over-year.

This paradox highlights a critical issue—while more people aspire to financial independence, fewer believe they can achieve it.

Retirement savings gap

The retirement savings gap is a symptom of the obstacles faced by savers. Jacque recently participated in a symposium discussing “Retirement Savings Equity and the Pursuit of Financial Independence,” with panelists from Morgan Stanley and Deloitte. There is a collective retirement savings shortfall across all workers, and the gap is particularly notable among women and minorities, according to Deloitte. When people start saving, income levels and interrupted careers due to raising children and caregiving are some of the challenges.

Financial stress is an obstacle

A major factor contributing to this challenge is financial stress. Jacque noted, “Most of the concerns that people express are about finances. If you inquire about their worries, chances are they will mention a few financial matters,” Jacque observed.

The VOTAW survey found worries over earnings, maintaining a way of life and health care expenses are major stress factors.

By incorporating inclusive strategies to meet the needs of clients, advisors may help them feel more confident about their financial choices on the path to fiscal autonomy.

The imperative for a holistic financial approach

“Data from the VOTAW supports the need for a holistic approach to financial health,” Jacque said. The financial industry, she…