Supporting Employee Financial Wellness: Why Retirement Plans Matter

With 57% of employees citing finances as their primary source of anxiety, financial stress is a significant issue for today’s workforce. This worry doesn’t discriminate, affecting everyone from entry-level staff to high-income earners: almost half of employees making over $100,000 annually still struggle with financial concerns.²

For business owners, addressing employee financial wellness isn’t a trend—it’s becoming essential to building a resilient, focused workforce.

The Cost of Financial Stress in the Workplace and Beyond

According to a recent survey, 60% of full-time employees feel stressed about their finances. It’s no surprise that this uncertainty can affect work productivity, engagement, and job satisfaction. When employees are overwhelmed by financial concerns, they’re more likely to be distracted, less efficient, and inclined to seek new employment.

Financial stress affects more than job performance; it can impact many areas of personal health and well-being—including sleep, mental health, self-esteem, and relationships at home.

This issue spans industries from manufacturing to professional services, with employees seeking financial guidance that aligns with their career paths and future goals. Companies that provide employees with retirement plans, along with financial planning education and resources, can significantly reduce their financial stress. This support goes a long way in fostering a more stable, engaged workforce.

Tami Bowman, Director of Retirement Plan Services at Trust Company of Illinois (TCI), points out, “We’ve worked with thousands of employees at businesses in many different industries. It’s evident that offering comprehensive retirement plans and ongoing education can lead to more engaged, confident employees. It helps them feel like they’re on a clear path.”

Making Retirement Planning Accessible to All Levels of Financial Confidence

Retirement plans are among the most effective tools employers can use to support financial wellness, but simply offering a plan isn’t enough. Employees (whose financial confidence typically decreases as they approach retirement) need access to simple educational resources and practical guidance to make the most of these benefits.

Source: “The Future of Workplace Financial Well-Being” SoFi, 2024

Tailored plans that integrate investment options with financial literacy can empower employees to take control of their financial futures, reducing anxiety and encouraging a proactive approach to savings.

Cheryl Simoncelli, Retirement Plan Services Advisor at TCI, collaborates closely with her team to support employers in designing retirement plans that align with the diverse financial goals and needs of their workforce. Simoncelli explains how consistent education can make a real difference: “Our focus is on making retirement planning accessible to employees at all levels. We work alongside businesses to help their teams understand how to make smart financial decisions that reflect what’s most important to them.”

Don’t Set it and Forget it: The Value of Ongoing Education and Support

A recent study found that 70% of HR leaders claim to offer financial well-being benefits—yet only 48% of employees reported awareness of these programs. As Bowman notes, “A retirement plan is only as effective as its support system. We make sure plans are adaptable, continually evolving as the business and employees’ needs change.”

Simoncelli emphasizes that ongoing support is essential for a plan to remain relevant and valuable over time: “We don’t just launch a plan and walk away. We stay involved long-term, offering ongoing guidance and education, adapting the plan alongside the business’s growth and evolution. This continuous engagement helps ensure that employers and employees have the necessary resources to make informed decisions as their financial goals evolve.”²

Financial Wellness as a Driver of Workplace Culture and Success

Supporting employee financial wellness through retirement plans is more than just offering a savings vehicle; it’s about creating a culture that values financial security and long-term planning. When companies take steps to address financial well-being, they help employees focus on their roles rather than their financial concerns. This holistic approach to wellness can drive overall success, from greater productivity to improved employee loyalty.

The goal is simple: Provide employees with the right level of resources and knowledge they’re seeking to help them reduce their financial stress. Bowman underscores the impact: “A well-structured retirement plan can transform how employees view their financial future—and the company itself. That positive shift creates a more focused, driven workforce that ultimately benefits the entire organization.”

The Takeaway: A Strategic Choice for a Healthier, Productive Workplace

In today’s competitive landscape, creating a more financially secure workforce can be a strategic advantage for businesses. Supporting financial wellness through thoughtful retirement planning eases financial stress and contributes to attracting and maintaining a productive, committed, and focused team.

If you’re a business owner seeking ways to foster a stronger, more loyal workforce, consider investing in a retirement plan that goes beyond basic savings to include comprehensive education and continuous support. You’ll make a lasting impact on your employees’ (and your own) financial stability and well-being.

¹ Workers’ financial stress at critical levels, Investment News (2024).
² SoFi Survey: The Future of Financial Well-Being at Work (2024).
³ 2023 PwC Employee Financial Wellness Survey.