Financial stress is a prevailing theme in 2024 as inflation persists, yet financial wellness programs are currently scarce — only 28% of employers currently offer a structured program. It seems some companies are starting to pay attention to the $40 billion cost of financial distress, though, as an expert panel believes there will be a significant increase in the number of employers offering financial wellness programs for their workers in the next two years.
Survey responses from the panel of financial and retirement professionals were shared by Transamerica’s Prescience 2026 Council, revealing that nearly half of employers (47%) are expected to offer comprehensive financial wellness programs by the end of 2026.
Of the employers with a program, 37% anticipate providing an automated assistant, chatbot, or avatar for employees to use in creating personalized financial wellness plans or tracking their progress. Additionally, 23% said a personal coach, either in-person or over the phone, with whom employees can meet with is how they offer a program. 31% of employers cited both options, and 9% cited neither option.
The anticipated increase in the number of employers offering financial wellness programs is a development in the workforce that marks a notable turnaround from previous anlysis of these trends, which show these programs are not widely available.
The survey, which included experts from various financial and retirement planning fields, reveals the likely increasing adoption of financial wellness programs are designed to curb the rise in employee financial stress.
Financial wellness programs, as defined in the survey, offer a range of services including budgeting training, stress management tools, and personalized coaching.
When it comes to the question of who will pay for these programs, the panel is split:
- 34% believe these programs will be paid for entirely by employers.
- 24% believe the fee will be paid in part by employers and in part by the employer.
- 17% believe the program will be paid entirely by employees.
- 25% said there is “no identifiable fee (e.g. cost covered by a benefits provider as part of their standard service,” according to the report.
Experts believe that employees who are less burdened by financial worries are more likely to save for retirement and less likely to require public assistance, which in turn benefits both the workforce and society at large. Over half (63%) of employers expect to measure differences in retention rates between users and nonusers.
This shows that employers who invest in these programs are also expecting to gain a competitive edge when it comes to recruiting and retaining top talent.
Most of the respondents (76%) believe employees will follow the recommendations provided by these wellness programs, whether through automated tools or live counselors. Additionally, despite initial concerns about data confidentiality, employees appear increasingly willing to share personal information for the sake of financial wellness.
