Supporting Financial Wellbeing is Critical to Recruitment and Retention

Rhea-AI Summary

Gallagher (NYSE:AJG) released findings on Oct 15, 2025 highlighting that employers are boosting financial wellbeing programs amid inflation, rising healthcare costs, and student debt. Based on a survey of over 4,000 U.S. employers, 47% increased focus on financial wellbeing (vs 56% for emotional wellbeing), with a two-point rise in employers offering at least one financial initiative.

Key program adoption rates include 54% for will/estate planning, 51% for financial planning, 25% for debt counseling, 81% self-service retirement tools, 67% one-on-one planning, 55% offer HSAs and 66% of those contribute, and 67% offer tuition assistance. Student loan repayment remains limited at 12%.

Positive

• 47% of employers increased financial wellbeing focus in 2025
• 81% offer self-service retirement tools for employees
• 67% provide one-on-one financial planning appointments
• 55% offer consumer-directed plans with HSAs; 66% of those contribute
• 67% of employers offer tuition assistance

Negative

• Only 12% of employers provide student loan repayment contributions
• Just 2% offer matching contributions on student debt repayment
• Only 25% of employers offer debt counseling services

ROLLING MEADOWS, Ill., Oct. 15, 2025 /PRNewswire/ -- Amid inflation, escalating healthcare costs, and mounting student debt, employees are facing unprecedented financial challenges. In response, employers are redefining their role as proactive financial partners, offering resources that help balance immediate stability with long-term preparedness. Gallagher's 2025 U.S. Financial Benchmarks Report highlights the importance of adopting a comprehensive approach to financial wellbeing, integrating support throughout the employee lifecycle.

"As workforce expectations evolve, employers have a unique opportunity to reshape how they support their employees' financial wellness," said John Tournet, U.S. CEO of Gallagher's Benefits & HR Consulting Division. "By addressing financial resiliency alongside physical and emotional wellbeing, they can foster loyalty, reduce turnover, and build a more productive workforce that's ready to thrive in today's economic environment."

Based on Gallagher's 2025 U.S. Benefits Strategy & Benchmarking Survey from over 4,000 U.S. employers, the report provides data-driven insights and actionable recommendations for employers seeking to enhance workforce wellbeing. The findings emphasize the growing significance of financial health as a cornerstone of employee engagement, retention, and organizational success.

Financial Wellbeing as a Strategic Imperative
Financial wellbeing has become a top priority for employees navigating rising economic pressures. Nearly half of employers (47%) report an increased focus on financial wellbeing this year, second only to emotional wellbeing (56%). This shift has led to a two-point increase in the number of employers offering at least one financial wellbeing initiative.

Employers are introducing tailored resources to support employees through various life stages and personal situations. For example, 54% of employers now include initiatives like will preparation and estate planning, 51% provide financial planning or wealth management services, and 25% offer debt counseling services. These programs not only boost employees' confidence in managing their finances but also reduce financial stress, improving overall engagement and loyalty.

Integrating Retirement Planning into Holistic Strategies
Retirement planning is increasingly being integrated into broader wellbeing strategies to enhance employee satisfaction and strengthen organizational resilience. The SECURE 2.0 Act has introduced measures such as auto-enrollment, increased catch-up contributions, and improved access for part-time workers, making retirement readiness a critical focus for employers.

Currently, 81% of employers offer self-service tools that allow employees to check balances and adjust contribution allocations. Additionally, 67% provide opportunities for one-on-one financial planning appointments, equipping employees with the knowledge and resources to make informed decisions that support financial wellbeing and retirement readiness. By embedding retirement planning into holistic financial wellbeing strategies, employers are helping to alleviate financial stress and distractions, fostering a more focused and productive workforce.

Expanding Financial Wellness Beyond Retirement Plans
As financial stress continues to impact employees, employers are expanding beyond traditional retirement plans to improve financial wellness and differentiate themselves in a competitive job market. Healthcare costs remain a major source of financial strain, and health savings accounts (HSAs) are emerging as a solution for both healthcare and general financial planning. More than half of employers (55%) offer consumer-directed health plans with HSAs, and 66% of those contribute to these accounts, further increasing their value for employees. Flexible spending accounts are also being utilized to encourage proactive budgeting for specific medical, pharmacy, dental, and vision expenses not covered by health plans.

Tuition assistance programs have proven to be a valuable tool for attracting and retaining younger employees, with two-thirds of employers (67%) offering this benefit. Likewise, the conversation around student loan repayment contributions is gaining momentum. Currently, 12% of employers provide this benefit, with 2% adding matching contributions on student debt repayment and another 8% considering it. This growing trend reflects the increasing importance of addressing student debt as part of a comprehensive financial wellbeing strategy.

"Investing in the financial wellbeing of the workforce gives organizations a competitive edge," added Tournet. "By taking proactive steps to support financial health through tailored offerings and retirement planning, employers are building a culture based on trust, loyalty, and shared success."

ABOUT THE 2025 U.S. FINANCIAL BENCHMARKS REPORT
Gallagher's 2025 U.S. Financial Benchmarks Report is part of the Workforce Trends Report Series, which highlights survey results on retirement plan benefits and other supporting coverages. Other reports in the series cover benefits and talent solutions, best-in-class employers, employee communications, and employees' perspectives on voluntary benefit programs.

The series is designed to assist employers in developing and optimizing a people strategy focused on holistic wellbeing, enabling their employees and families, their organization, and their communities to thrive. The data and insights are compiled from a variety of Gallagher benchmarking surveys conducted each year. In this report, they're based on the results of the U.S. Benefits Strategy & Benchmarking Survey, gathered from January to March 2025. A total of 4,035 organizations across the U.S. participated.

ABOUT GALLAGHER 
Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management, and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Contact:
Mary Schwartz, Gallagher
847.378.5893
mary_schwartz@ajg.com

 

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SOURCE Gallagher

FAQ

What did Gallagher's Oct 15, 2025 AJG report find about employer focus on financial wellbeing?

The report found 47% of employers increased focus on financial wellbeing in 2025, with a two-point rise in offering at least one financial initiative.

How common are retirement planning tools according to Gallagher's AJG survey?

81% of employers offer self-service retirement tools and 67% offer one-on-one financial planning appointments.

What percentage of employers provide HSAs and employer contributions in the AJG Oct 15, 2025 report?

55% offer consumer-directed plans with HSAs and 66% of those employers contribute to the accounts.

How prevalent is student loan repayment support in the AJG survey dated Oct 15, 2025?

Student loan repayment contributions are provided by 12% of employers; 2% offer matching and 8% are considering it.

What financial wellbeing services saw notable adoption in Gallagher's AJG report?

Notable adoption includes 54% offering will/estate planning, 51% offering financial planning/wealth services, and 25% offering debt counseling.