JPMorganChase has pledged $14.5 million towards fostering innovations in workplace and public benefits programs. These efforts aim to assist individuals, particularly those with low to moderate incomes, in accessing essential benefits such as education savings or retirement plans. The initiative aligns with the firm's broader mission to enhance the financial health of its customers and communities across the United States.
Benefits are a crucial aspect of improving the financial well-being of employees, especially for those earning low to moderate incomes. They provide a financial safety net beyond wages, enabling employees to better manage their current financial situation and plan for future goals like college and retirement. According to JPMorganChase, less than one-third of employed Americans have access to workplace benefits that could assist in managing critical financial needs, resulting in an annual cost to the economy of nearly $183 billion.
Carol Lake, Global Head of Philanthropy and President of the JPMorganChase Foundation, stated, “Whether it’s building a buffer for emergencies, saving for higher education, or preparing for retirement, benefits play a crucial role in helping individuals improve their financial health and build greater wealth for themselves and their families. Modernizing and connecting benefits across the public and private sectors is essential to supporting consumers at every stage of their financial journey, creating communities where economic opportunity is accessible to all.”
The complexity associated with benefits systems acts as a significant obstacle for many low- to moderate-income workers, who often rely on public benefits systems. As a result of complex eligibility requirements and administrative hurdles, over $80 billion in public benefits remain untapped annually.
JPMorganChase's funding will support organizations focused on modernizing the benefits systems and increasing access to crucial support for workers. The commitments include $7 million to Commonwealth to pilot and scale workplace benefits programs, $3 million to Code for America to deploy AI-enabled solutions to improve benefits access, $1.58 million to Washington University for research into the role of benefits for workers, and $1.5 million to the Aspen Institute Financial Security Program. Additionally, $500,000 will be allocated to the Financial Health Network to research beneficial workplace policies, $500,000 to Women’s Money Matters for a pilot program in Massachusetts, and $500K to LiftUp Communities to strengthen financial mobility pathways in Chicago.
Timothy Flacke, CEO of Commonwealth, addressing the importance of workplace benefits stated, "American workers deserve to not only get by today, but to build wealth for a brighter future. Workplace benefits hold one key to unlocking this potential, turning wages into financially secure families.”
JPMorganChase continues to improve financial health not only for employees within the firm but also with other employers nationwide. In the words of Bernadette Branosky, Global Head of Benefits at JPMorganChase, “We’re committed to helping our employees manage their financial lives, prepare for the unexpected, and build a foundation to reach their short, medium, and long-term goals.”