Enhancing Employee Retirement Readiness Through Financial Guidance in the Workplace

In today's complex financial landscape, the importance of employee retirement readiness has never been clearer. Despite the wide availability of retirement benefits, many employees feel uncertain about their financial future. New research from NFP, a leader in risk management and employee benefits, sheds light on the growing need for enhanced financial guidance in the workplace to boost retirement readiness among employees.

Key Findings from the 2025 NFP U.S. Retirement Trend Report

The recently published 2025 NFP U.S. Retirement Trend Report reveals a significant disconnect between employees' expectations and their actual engagement with retirement planning resources. Surprisingly, while 89% of employees express trust in the financial advisors provided by their employers, only a mere 41% actively seek their advice.

Only about 36% of employees reported having access to one-on-one meetings with these financial professionals. However, two-thirds indicated that they find such resources invaluable for retirement planning. This gap presents a poignant opportunity for employers to integrate financial advisors into their benefits strategy effectively.

The Confidence Crisis

The report highlights a troubling trend: just one in three workers feel confident about achieving a comfortable retirement. Several factors contribute to this sentiment, including rising living costs, economic uncertainty, and a general lack of clarity regarding retirement needs.

Jessica Espinoza, National Practice Leader at NFP, emphasized that a significant number of workers are either prioritizing other financial obligations over retirement or feel unable to save at all. Even among those who do attempt to save, many are unclear about what it means to be “on track” for retirement.

Additionally, 55% of respondents revealed they associate negative feelings with retirement planning—these include feel overwhelmed, unprepared, or scared. Such financial stress extends beyond mere economics—it influences mental health (48% reported), impacts familial relationships (43%), and even physical wellbeing (32%). This paints a clear picture of the urgent need for comprehensive support from employers.

The Employer's Role

The report further emphasizes that employers have a crucial role to play in retirement planning. While a significant majority (86%) of employers offer at least one investment vehicle and 73% provide 401(k) plans, nearly half of employees remain unaware of these resources. Moreover, only a quarter completely understand their available investment options. However, awareness is closely linked to engagement; 76% of those who understand their options are actively participating in their plans.

Espinoza notes, “Access alone isn’t enough. Awareness and education are just as critical as the benefits themselves.” Despite high trust in financial professionals, barriers persist, with employees citing concerns regarding affordability (32%), fear of sales pressure (28%), and data privacy (21%) as reasons for hesitating to engage.

Moving Towards a Culture of Retirement Readiness

The manner in which employees engage with financial advisors is key to fostering a culture of retirement readiness. The report indicates that employees prefer engaging in an environment that is comfortable and private, with many favoring online resources (58%) or personalized, one-on-one meetings (57%).

As Stephen Jans, National Practice Leader at NFP, states,