Wealth and Health: Training for total wellness with the Deferred Compensation Plan (DCP)

Achieving balance in your physical, mental, and financial health requires dedication and preparation. In the spirit of the 2024 Savings Games for National Retirement Security Month, employees and participants in the City of Los Angeles DCP have the opportunity to "train" for a future of total wellness.

When you think about wellness, remember it’s not just about one aspect. Physical, mental, and financial wellness are all interconnected, and neglecting one can hold you back from achieving your best overall performance.

The wealth-health connection: A winning strategy

Much like an athlete’s success depends on training both body and mind, your financial fitness is directly linked to your physical and mental health. Here's how:

  • Physical and financial health are teammates: Poor physical health can lead to increased medical expenses, which can chip away at your retirement savings. According to Voya Financial, 51% of individuals surveyed say that concerns about medical expenses affect their ability to save for retirement (Voya Financial, 2024).

  • Financial stress affects peace of mind: A 2023 study from the American Psychological Association found that 82% of 18–34 year olds reported money as a significant stressor, compared to 77% of 35–44 year olds, 63% of 45–64 year olds, and 47% of 65+ year olds.

  • Financial wellness programs can improve well-being: Approximately 82% of employees surveyed in a Workplace Wellness Survey from the Employee Benefits Research Institute say financial wellness programs contribute to their sense of financial security. (Employee Benefit Research Institute, 2023).

Just as athletes need a solid training plan, improving your health and financial well-being requires thoughtful preparation. The good news is the DCP and City-sponsored wellness programs, like LIVEwell for City civilian employees, can provide the tools and support to get you to the finish line.

Actionable steps for achieving total wellness

Similar to how a seasoned competitor prepares for their big event, you can take these steps to keep you on the path to a healthy and financially fit future. Here’s how you can use the City’s resources to maximize both health and wealth:

  1. Evaluate your financial fitness.
    If you are a participant in the DCP, you can start by completing the Financial Wellness Assessment on the DCP’s website. This will give you a sense of your current financial situation and guide you in building a stronger retirement plan. To update your assessment, log in to LA457.com > My Financial Wellness.

  2. Map out your retirement journey.
    Use the DCP Retirement Calculator to estimate your future financial needs. This helps you visualize how much you need to save for a comfortable retirement. To explore the Retirement Calculator login to LA457.com > Retirement Calculator.

  3. Challenge your physical fitness.
    Participating in regular physical fitness activities can boost your physical health, potentially lowering the risk of expensive medical treatments. Whether it’s a step challenge or a stress-relief activity, staying healthy can reduce financial strain in the long run.

  4. Consult with a Local Retirement Counselor.
    If you're unsure how to navigate the years leading up to retirement, a Local Retirement Counselor can help you fine-tune your strategy. To connect with a Local Retirement Counselor, visit LA457.com/contact-us.

  5. Attend Money Matters webinars.
    The DCP hosts Money Matters webinars that can help you improve your financial knowledge. Attending these sessions can help you stay mentally sharp and financially prepared. To register for an upcoming session, visit LA457.com/money-matters.

Stay on track for a golden future

Just like training for a big event requires consistency and effort, balancing your health and wealth requires ongoing attention. By leveraging the resources from the DCP and City-sponsored wellness programs, you can stay in shape both physically and financially, setting yourself up for long-term success.

Start training today—your health, wealth, and future self will be glad you did!


Sources:
Voya Financial. (2024). Voya Financial Consumer Insights & Research Survey
American Psychological Association. (2023). Stress in America 2023.
Employee Benefit Research Institute. (2023). Workplace Wellness Survey


This information is not intended to provide legal, tax, or investment advice. All investments are subject to risk. Local Retirement Counselors are Registered representatives of Voya Financial Advisors, Inc. (member SIPC). Representatives of Voya Financial do not offer or provide investment, fiduciary, financial, legal or tax advice or act in a fiduciary capacity for any client unless explicitly described in writing. Please consult with your investment advisor, attorney and/or tax advisor as needed.

NRSM 2024LA 457