How Financial Wellness Fuels Productivity and Engagement
In today’s evolving workplace, financial wellness has become more than just a benefit; it may be considered a critical priority for plan sponsors focused on improving retirement outcomes. A strong financial wellness program does more than encourage employees to save for the future—it helps to reduce financial stress, enhance workplace productivity, and boost engagement with the retirement plan.
To stay ahead in 2025, consider these key strategies for enhancing your financial wellness offering:
1. Deliver Customized, Comprehensive Financial Education
Generic financial advice no longer meets the needs of today’s diverse workforce. Employees seek guidance tailored to their unique life stages, income levels, and goals. To meet this demand, plan sponsors can offer:
- Interactive tools like budgeting apps and debt management calculators.
- Financial education workshops covering topics from emergency savings to retirement investing.
- Personalized one-on-one coaching to help employees develop actionable, customized financial plans.
According to PwC’s 2023 Employee Financial Wellness Survey, 57% of employees cite finances as their top source of stress. By offering personalized, relevant financial education, employers can significantly impact employee well-being and workplace engagement.
2. Incorporate Student Loan Support and Emergency Savings Solutions
The SECURE Act 2.0 introduces a valuable opportunity for employers to match student loan repayments as if they were retirement contributions. This helps plan sponsors support younger employees who are prioritizing debt repayment while still working toward their financial future.
Additionally, offering emergency savings programs alongside retirement plans helps employees manage unexpected expenses without dipping into long-term savings. Vanguard’s How America Saves 2025 reports increased hardship withdrawals, highlighting the need for financial safety nets within benefits packages.
3. Provide Accessible, Ongoing Financial Resources
Financial wellness should not be a one-time event. For lasting impact, employers must integrate it into the employee experience year-round. Effective strategies include:
- Incorporating financial wellness resources during open enrollment.
- Delivering timely, personalized content and reminders via email, apps, or digital platforms.
- Offering financial check-ins during significant life milestones, such as marriage, childbirth, or home purchases.
4. Align Wellness Programs with Retirement Outcomes
A successful financial wellness program can directly improve retirement readiness. Sponsors can measure impact by tracking:
- Increases in deferral rates.
- Decreases in loans and hardship withdrawals.
- Higher participation rates across all income levels.
By combining plan data with wellness platform analytics, sponsors can identify where targeted interventions will have the greatest impact.
5. Collaborate With Trusted Providers and Advisors
A well-rounded program often benefits from external support. Collaborating with recordkeepers, financial wellness platforms, or fiduciary advisors helps ensure the content is credible, compliant, and aligned with your plan’s objectives.
Conclusion
Enhancing financial wellness programs is not just about increasing retirement balances; it’s about building long-term resilience and trust. By investing in your employees’ financial well-being, you help them pursue better outcomes today and in retirement.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Patricia L. Hutchinson
Director of Retirement Plan Services
AIF®, MBA