The Future of Financial Wellness Benefits: Trends to Watch
Financial wellness has been a topic of growing intrigue in recent years. No matter where you choose to look, the quantitative and anecdotal data to support this are ample — even a quick glance at Google Trends data will showcase a rapidly growing interest in the subject.
Elsewhere, consumers are establishing both personal and professional expectations around financial wellness resources. The total financial wellness benefits market was valued at about $587 million as of 2023 but is expected to more than double to $1.2 billion by 2029. On the employer side, it’s anticipated that almost half (47%) of employers will offer some form of financial wellness benefits by 2026.
This is because not only do employees want help with their finances (in fact, 93% seek financial guidance and support from their employer), but offering financial wellness benefits ends up bringing positive effects to the company itself, too, with noticeable improvements across attrition, sick leave, workplace morale, employee stress levels, and a lot more having been noted by numerous studies.
The Growing Importance of Financial Wellness in the Workplace
All of this is not without good reason. In the modern world, money is involved in almost every aspect of our lives. It’s essential for basic needs like housing, transportation, and general personal well-being. It’s often required for education and career growth, an integral aspect of personal development and fulfillment, and especially essential for those with children and loved ones to care for. Without exaggerating, financial wellness is involved in everything, and lacking it can wreak havoc on both personal and professional lives, subsequently hurting the employees' workplace as well.
Why is financial wellness so important in the workplace? Think about it. For most individuals, a large portion (if not all) of their financial lives is often directly tied to their employer. It’s from there that they receive their income, health insurance, retirement account, etc., and yet, they’re often just given these financial benefits without any assistance with using them properly, planning for the future, or the support they seek for difficult financial situations.
Not only does providing financial wellness benefits like access to professionals, budgeting tools, financial education, and more benefit the employees, but it also has downstream benefits for the company as a whole.
Like what?
- According to PWC's 2023 Financial Wellness Survey, 60% of full-time employees are stressed about their finances. This is true even amongst high-earners, with 47% of those making over $100,000 reporting financial strain.
- Money stress finds its way into other important areas of employees’ personal lives, with employees reporting negative implications of financial stress across sleep, mental health, self-esteem, and more.
- Employees who are stressed about their finances are about five times more likely to report it impacting their performance at work, with 44% reporting it as a distraction.
- As mentioned above, employees do want help with their personal finances — 74% seek financial guidance when dealing with crises, life events, or general financial decisions.
- Stressed-out employees cost companies big time — some estimates put financial stress at an estimated $250 billion per year in lost productivity and absenteeism.
Source: PWC
Ongoing and Developing Trends Within the Financial Wellness Space
As the importance of financial wellness continues to grow, several key trends are emerging that will shape the future of how employees receive financial support.
Automation and AI in Financial Planning
Automation and AI tools are revolutionizing financial planning by offering personalized, real-time financial advice. The global AI in fintech market is projected to reach $14.79 billion by 2024 and expand to $43.04 billion by 2029, indicating a significant trend toward automation in the financial planning space.
Origin is leading this transformation with its AI-powered tool, Sidekick, simplifying users' financial decision-making. Sidekick provides real-time insights, automates budgeting, and delivers tailored guidance, enabling employees to manage their finances more effectively.
On-Demand Financial Coaching and Education
Artificial intelligence may help reduce latency and assist with simpler queries in the financial advice space, but it cannot replace the human element. Employees increasingly expect access to financial coaching when they need it most. Platforms offering real-time financial guidance are gaining traction, with 58% of employees saying they would use employer-provided financial wellness resources if offered.
Financial Wellness as a Core Component of Total Well-being
Financial wellness is now recognized as part of a broader well-being strategy. Companies that provide financial wellness benefits see 77% of employees likely to recommend them as a great place to work, underscoring the importance of integrating financial health into total wellness programs.
Holistic Financial Wellness: Beyond Budgeting
Financial wellness is expanding beyond simple budgeting tools. Holistic solutions now focus on long-term financial goals, debt management, and overall financial literacy. These programs offer employees strategies for managing debt, improving credit, and saving for future life events such as homeownership or retirement.
Joint Money Management for Couples
Joint money management is becoming a key focus of financial wellness programs, recognizing that household finances are often shared. Simple, seamless tools that help couples manage shared goals, budgets, and savings are increasingly in demand. Origin offers a seamless solution, providing partners with easy access to their holistic financial wellness platform. Learn more about Origin's couples-focused resources here.
Tracking and Monitoring Equity Compensation and Benefits
Equity-based compensation and stock options have become an increasingly popular form of total comp in recent years, but navigating this kind of benefit is often a labyrinth of math and tax calculations, much unique from a standard salary. As a result, more employees are looking for tools to track and manage their equity. Platforms are now emerging that help employees monitor their stock portfolios, understand vesting schedules, and make informed decisions about when to sell or hold equity.
Origin: Your Partner for the Future of Financial Wellness
As financial wellness becomes integral to the benefits landscape, having a trusted partner to navigate these evolving needs is essential. Origin offers a comprehensive financial wellness platform that empowers employees at every stage of their financial journey. From personalized financial planning and budgeting tools to expert financial coaching and joint money management for couples, Origin makes it easy to integrate financial wellness into your workplace.
With seamless access to professional guidance, on-demand resources, and tools tailored to each employee's unique needs, Origin helps companies reduce financial stress, boost productivity, and enhance overall well-being. Learn how Origin can elevate your employee benefits program and support your team's financial future here.
