Financial Wellness at Work: A Guide to Determining the Right Benefits for Your Team
Financial Wellness at Work: A Guide to Determining the Right Benefits for Your Team
Each of your employees has different priorities when it comes to their finances. Some are focused on building a retirement nest egg while others are working to pay down student debt. Today’s workforce is more financially diverse than ever—and your benefits package should reflect that.
In this comprehensive guide for employers, we’ll share what types of financial wellness solutions are available today and how to determine which are the most valuable to your employees. Let’s dive in.
Different Priorities Equals Different Needs
Depending on factors such as age, lifestyle, recent milestones, income, industry, family life, and health, each individual has a different approach to savings. For example,
- Jose, 50, is getting closer to retirement age. For the last few years, growing his nest egg and maxing out annual contributions has been a top priority. He is also the father of two children, ages 18 and 16, and is focused on creating substantial college savings funds for them.
- Emily is a recent college graduate who took on debt to receive her education. She is living paycheck to paycheck and feels she could really use support with repaying her student loans and creating an emergency fund.
While a workplace retirement plan remains a highly valued benefit, it’s no longer enough on its own. Today’s employees are looking for support that reflects their full financial picture—whether that’s saving for education, managing debt, or preparing for the unexpected. A modern benefits package should offer flexibility to support employees through every stage of their financial journey.
Benefits Available Today and Who May Be a Good Fit
When it comes to employee benefits, there are dozens of programs and solutions available to help employees manage their finances. Here are some of the most common and highly sought-after benefits, all available on Vestwell’s modern, comprehensive platform.
Retirement Savings
Retirement savings plans through the workplace are a common first savings benefit many businesses offer, and for good reason—85% of employees expect their employer to offer a plan such as a 401(k). Retirement savings plans come in many shapes and sizes and provide businesses with the flexibility to customize their plan to reward longevity, recruit talent, or simply stack up against competitors.
Which employees need retirement savings? The simple answer is everyone—we all hope to retire one day and will need the funds to live comfortably. Depending on your employees' age demographics, older individuals may naturally prioritize retirement savings more.
Emergency Savings
When it comes to emergency savings, 60% of employees would like to access an emergency savings account through their employer, yet only 21% currently offer one. From inflation to high interest rates, individuals are feeling the pressure and are looking to their employers for help when it comes to building a rainy day fund. A workplace Emergency Savings Account (ESA) allows employees to set aside funds automatically through payroll deductions, creating a financial cushion for life’s unexpected expenses.
Which employees need emergency savings? While everyone can benefit from having emergency savings, here are some indicators that an ESA could be especially valuable for your team:
- Low 401(k) participation may be a sign that your employees simply can’t afford to prioritize long-term savings yet.
- Frequent plan loans, hardship withdrawals, or early distributions may indicate that employees are treating their retirement plan as an emergency savings fund.
- A high percentage of hourly or lower-income workers on staff.
529 Education Savings
Education savings in the form of 529 accounts are making their way into the workplace, and fast. Nearly 75% of employees placed some level of importance on having a 529 in their workplace benefits package. Given the flexibility of these accounts, individuals can set them up for themselves, or for someone else such as a child or grandchild. Businesses can add 529s to their benefits package to help employees boost their savings by making employer contributions.
What kind of employees is 529 education savings ideal for? 529 plans are especially valuable for employees with children or dependents they are planning to support through higher education. They’re also a great fit for industries where continued education, certifications, or advanced degrees are common, such as healthcare or finance.
Student Loan Repayment Assistance
More than 40 million Americans are facing student debt. 74% of those with student loans agree that they would be more likely to continue working for an employer that offered student loan-related benefits. Student loan repayment assistance programs, where employers make direct contributions toward an employee’s balance, are growing in popularity as a workplace benefit.
What kind of employees is student loan repayment assistance ideal for? This benefit often resonates with early-career professionals managing student debt. It’s particularly relevant in fields with high educational requirements—such as law, education, and healthcare—where many employees enter the workforce with significant loan balances.
Extra tip: Not ready to implement a full student loan repayment program? Consider offering student loan matching, which allows employers to match qualified student loan payments by contributing the equivalent amount into an employee’s retirement account—helping employees pay off debt without falling behind on their retirement savings.
Disability Savings
ABLE (Achieving a Better Life Experience) accounts are tax-advantaged savings tools that help individuals with disabilities and their families save for qualified expenses—like housing, healthcare, education, and transportation—without impacting eligibility for public benefits. Including ABLE accounts in your benefits package promotes financial inclusion and supports employees often left out of traditional savings options. Moreover, 77% of employees who have an immediate family member with a disability, say that having an ABLE account is at least somewhat important to their financial situation.
What kind of employees are ABLE saving accounts ideal for? ABLE accounts are a critical benefit for employees living with disabilities, as well as those who care for a child or dependent with a disability.
Empower Your Employees With Holistic Financial Benefits
A thoughtful and comprehensive benefits package shows your employees that you understand their challenges, support their goals, and want to invest in their future. From retirement to emergency savings, student loan assistance to disability support, offering a mix of modern financial benefits can help employees feel more secure, making them more engaged at work.
Ready to rethink your approach to benefits? Vestwell can help you design and deliver savings solutions that meet your employees at every stage of their financial journey—on a single, modern platform built for today’s workforce.
