Financial Wellness Inextricably Linked to Employee Wellness

According to Voya Financial’s “Consumer Insights and Research” survey, 63% of respondents said financial stability directly impacted their mental health and that financial stress led to anxiety, avoidance and long-term health impacts. That number has increased by 6 percentage points in two years, says John Brett, Voya’s president of wealth management, citing the survey.

Brett adds that financial stress “rarely stays confined to money alone” and often shows up first as avoidance, such as fewer people budgeting, saving for emergencies or planning for retirement, before turning into long-term health and productivity challenges.

Employers who do not prioritize financial wellness benefits are likely to see negative outcomes, ranging from lower engagement to higher turnover rates.

Where Advisers Step In

Brett says advisers are well positioned to help retirement plan sponsors and employers build programs or integrate financial wellness into current benefits that directly address workers’ financial stressors. He notes that employees overwhelmingly want access to practical guidance and emotional support, not just digital tools or education that is too general.

“Advisers can help employees shift focus from debt reduction to emergency savings once balances are paid down or frame long-term investing decisions in a way that reduces anxiety and builds confidence,” Brett says. “When paired with workplace benefits, this kind of ongoing, relationship-based guidance helps financial wellness programs feel relevant, actionable and supportive—not overwhelming.”

Advisers can also strategize with employers on ways to uncover the workforce’s true needs, using surveys, focus groups or data reviews, and then match those needs to targeted programs. Heather Winston, head of product strategy at Principal Financial Group, says understanding employees’ pain points is the first step.

Winston adds that advisers can assist employers through providing data to tailor benefits effectively and help diagnose needs: “That gives them enough data to then think about … ‘How do I tailor my [offerings] to what your employees have told me?’”

Advisers can also help close the persistent communication gap that exists in most workplaces and limits the value of even strong programs. Surya Kolluri, head of retirement at TIAA, says, “There is nothing called overcommunication.” Advisers, he notes, are well positioned to reinforce employer messaging, educate front-line managers and ensure that employees understand and apply the support available to them.

Just as importantly, advisers can help employers understand the long-term consequences of financial stress on retirement readiness and the benefits of implementing the proper resources. Poor mental health, cognitive overload and impulsive financial behaviors, such as dipping into retirement accounts or delaying savings, are all more prevalent among financially stressed workers, Kullori says.

What Financial Wellness Looks Like

Employers are moving away from one-off financial education sessions and toward integrated offerings that connect health, wealth and emotional well-being. Retirement plans, financial education and ongoing planning support are seen as core to an employer’s long-term benefits strategy, rather than a “nice to have,” Brett says.

Financial wellness programs that can be worked into existing benefits or built out include:

• Personalized guidance and access to advisers;
• Emergency savings programs, which can help prevent unplanned loans and financial hardships;
• Budgeting and debt management tools;
• Health savings accounts;
• Student loan assistance, especially for younger workers;
• Frequent, actionable communication, rather than yearly benefits reminders;
• Life-stage-specific education, recognizing that financial needs differ widely across an employee population; and
• Support for mental and physical health, acknowledging the link between stress and well-being.

Winston notes that true impact is a “continual process” and not limited to annual enrollment season. Employees need nudges, refreshers and information presented in multiple formats and at relevant times by advisers.

Kolluri says employers can apply the lessons learned from offering health benefits to create more holistic financial benefits.

“You can look at how many employees are choosing preventative care, for example, or [seek] mental health services when they’re available to them,” Kolluri says. “The conversation starts to shift a bit, and now we’re starting to find … employee[s] trust [their] employer and what they’re making available.”