Employers Adjust Financial Support Strategies to Improve Employee Outcomes in 2026
As the financial landscape for employees continues to evolve, a recent report from Gallagher reveals a significant shift in how employers are approaching financial support. Rather than merely offering retirement access, businesses are increasingly focused on improving financial outcomes for their employees. This is particularly crucial at a time when many employees face financial stress and uncertainty regarding healthcare costs and retirement savings.
According to Gallagher's 2026 US Financial Benchmarks report, which surveyed 3,717 US organizations, just 28% of employees feel confident that their current retirement savings strategy will meet their goals. Additionally, about 30% of employees aged 55 and over identify planning for retirement as their most significant financial concern. These statistics highlight a troubling trend of financial insecurity among the workforce, prompting employers to rethink their benefit strategies.
Focus Shift: Outcomes Over Access
While the majority of employers—85%—still provide retirement benefits, their priorities have shifted from simply granting access to these plans towards ensuring that employees can actually achieve successful retirement outcomes. This shift is underscored by recent legislative changes like SECURE 2.0 that mandate auto-enrollment and auto-escalation features in many new retirement plans. In fact, it’s reported that 57% of employers are already utilizing auto-enrollment, and 33% are implementing auto-escalation features to encourage higher contribution rates over time.
Personalized Support and Technology
In a move towards more individualized support, Gallagher's findings indicate that 81% of employers are now providing self-service financial planning tools. Furthermore, 68% offer one-on-one financial planning appointments, while 64% provide guidance on both retirement enrollment and investment selection. With the complexities of modern financial decisions, many employers are recognizing the importance of delivering personalized advice, and digital platforms are emerging as critical tools in this transition. Artificial Intelligence (AI) and analytics are increasingly being leveraged to aid employees in navigating their financial journeys.
The Role of Financial Stress
The report also highlights the profound impact financial stress has on employees' overall wellbeing and engagement. Approximately 45% of employers acknowledge that financial wellbeing has become a vital area of focus within their organizations. Employees reflect this sentiment, with 91% recognizing a connection between financial stress and mental health. Additionally, 74% make healthcare choices based on their financial situations, underscoring the overarching influence of financial health on various life decisions.
Broadening Financial Support
Employers are recognizing the necessity of extending financial support beyond retirement alone. They are adopting various programs to address comprehensive financial needs, with nearly 64% contributing to Health Savings Accounts (HSAs) to help employees cope with healthcare expenses. Furthermore, 68% offer tuition assistance, while 14% provide student loan repayment contributions as well as forgiveness benefits. Despite the growing financial demands on employees, however, only 5% of employers currently offer formal emergency savings programs to aid those without sufficient savings.
Looking Ahead: Compliance to Optimization
As organizations move past compliance with SECURE 2.0's mandatory provisions, attention is now directed toward optimizing their financial benefits strategies. Approximately 46% of employers have yet to implement optional provisions or are uncertain whether they have done so, indicating a considerable opportunity for improvement.
In summary, the findings from Gallagher’s report illustrate a transformative phase in employer strategies for financial benefits, marking a shift from sheer access to a more thoughtful approach that emphasizes better governance and personalized support. As financial wellbeing takes center stage in the workplace, it becomes critical for organizations to invest in helping employees make informed financial decisions that positively impact their lives. By doing so, employers not only enhance workforce wellbeing but also contribute to improved engagement and retention,
According to Gallagher's 2026 US Financial Benchmarks report, which surveyed 3,717 US organizations, just 28% of employees feel confident that their current retirement savings strategy will meet their goals. Additionally, about 30% of employees aged 55 and over identify planning for retirement as their most significant financial concern. These statistics highlight a troubling trend of financial insecurity among the workforce, prompting employers to rethink their benefit strategies.
Focus Shift: Outcomes Over Access
While the majority of employers—85%—still provide retirement benefits, their priorities have shifted from simply granting access to these plans towards ensuring that employees can actually achieve successful retirement outcomes. This shift is underscored by recent legislative changes like SECURE 2.0 that mandate auto-enrollment and auto-escalation features in many new retirement plans. In fact, it’s reported that 57% of employers are already utilizing auto-enrollment, and 33% are implementing auto-escalation features to encourage higher contribution rates over time.
Personalized Support and Technology
In a move towards more individualized support, Gallagher's findings indicate that 81% of employers are now providing self-service financial planning tools. Furthermore, 68% offer one-on-one financial planning appointments, while 64% provide guidance on both retirement enrollment and investment selection. With the complexities of modern financial decisions, many employers are recognizing the importance of delivering personalized advice, and digital platforms are emerging as critical tools in this transition. Artificial Intelligence (AI) and analytics are increasingly being leveraged to aid employees in navigating their financial journeys.
The Role of Financial Stress
The report also highlights the profound impact financial stress has on employees' overall wellbeing and engagement. Approximately 45% of employers acknowledge that financial wellbeing has become a vital area of focus within their organizations. Employees reflect this sentiment, with 91% recognizing a connection between financial stress and mental health. Additionally, 74% make healthcare choices based on their financial situations, underscoring the overarching influence of financial health on various life decisions.
Broadening Financial Support
Employers are recognizing the necessity of extending financial support beyond retirement alone. They are adopting various programs to address comprehensive financial needs, with nearly 64% contributing to Health Savings Accounts (HSAs) to help employees cope with healthcare expenses. Furthermore, 68% offer tuition assistance, while 14% provide student loan repayment contributions as well as forgiveness benefits. Despite the growing financial demands on employees, however, only 5% of employers currently offer formal emergency savings programs to aid those without sufficient savings.
Looking Ahead: Compliance to Optimization
As organizations move past compliance with SECURE 2.0's mandatory provisions, attention is now directed toward optimizing their financial benefits strategies. Approximately 46% of employers have yet to implement optional provisions or are uncertain whether they have done so, indicating a considerable opportunity for improvement.
In summary, the findings from Gallagher’s report illustrate a transformative phase in employer strategies for financial benefits, marking a shift from sheer access to a more thoughtful approach that emphasizes better governance and personalized support. As financial wellbeing takes center stage in the workplace, it becomes critical for organizations to invest in helping employees make informed financial decisions that positively impact their lives. By doing so, employers not only enhance workforce wellbeing but also contribute to improved engagement and retention,
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