7 Ways Financial Wellness Programs Can Strengthen Retirement Outcomes

As an employer, you play a direct role in your employees’ well-being. A workplace financial wellness program can help reduce employee financial stress, improve engagement, and support better decision-making—leading to higher productivity and stronger retirement outcomes. 

What is a workplace financial wellness program?

A workplace financial wellness program is an employee benefit designed to help individuals manage day-to-day finances, plan for retirement, and build investment knowledge. Ascensus’ Financial Wellness solution, powered by Financial Finesse goes further by pairing personalized guidance with a virtual financial coach, a robust multimedia library of calculators, articles, and tools.

Employees can access practical, actionable resources to support budgeting and saving, buying a home, preparing for retirement, and starting or growing a family—among many other financial and life goals. 

39% of plan sponsors plan to offer a financial wellness benefit

According to Mercer, 39%1  of plan sponsors plan to prioritize financial wellness to improve retirement readiness. Programs that help employees navigate life events and competing financial priorities create stronger alignment between today’s decisions and tomorrow’s retirement outcomes.

When employees feel confident and in control of their finances, they’re more likely to contribute consistently to their retirement plans. Conversely, financial stress at work can lead to absenteeism, reduced productivity, and lower morale. A 2024 TIAA report²  found that financial worries contribute to a 34% rise in employee absenteeism and lateness.

A strong financial wellness program for employees helps manage immediate pressures, build healthier financial habits, and plan for the future—resulting in a more focused, engaged, and a high-performing workforce.

Here are seven ways financial wellness programs strengthen retirement outcomes—and why an integrated Ascensus solution delivers more value.

1. Keep retirement saving intact when life happens

Employees don’t stop caring about retirement, they get pulled away by real life demands. A holistic financial wellness program helps employees manage competing priorities like debt, housing, or caregiving without abandoning long term retirement goals. Our integrated solution supports both day-to-day needs and long-term outcomes.

2. Improves contribution consistency over time

When financial stress is addressed outside of the retirement plan, employees are less likely to reduce contributions or opt out altogether. Integrated financial wellness reinforces the role retirement plays within the employee’s broader financial picture. This delivers more consistent deferrals and stronger compounding interest over time, without increasing employer contributions.

After identifying extra budget capacity through the Financial Wellness program, 30.77% of employees were able to contribute 10% or at least enough to receive the full company match.³

3. Reduces costly plan leakage

Retirement plan loans, hardship withdrawals, and early cash-outs often stem from unmanaged financial pressure. By addressing financial challenges holistically, wellness programs reduce the need to tap retirement savings prematurely.

Through the financial wellness program, 56.84% of users created a plan and saved up three or more months of living expenses.³ Financial wellness and retirement strategies work together—not against each other, helping employees protect retirement assets while improving overall plan health and outcomes for employers.

4. Builds confidence to stay invested through uncertainty

Market volatility and financial uncertainty can drive emotional decisions that undermine retirement progress. Holistic guidance helps employees put short-term events in context and stay focused on long-term goals. More confident employees demonstrate greater stability in retirement plan behavior and make fewer reactive investment changes.

5. Connects life decisions directly to retirement outcomes

Major milestones—buying a home, starting a family, caring for parents—shape retirement readiness. An integrated solution helps employees understand how today’s decisions affect tomorrow’s retirement, without forcing tradeoffs that derail progress. Through the financial wellness program, 75% of users reported living within their means, supporting both near term stability and long term retirement success.³

6. Increases engagement with existing retirement plan benefits

Employees are more likely to use and value their retirement plan when it’s part of a broader financial conversation. Financial wellness naturally drives awareness and utilization of plan design features like employer match, auto-escalation, and planning tools. This increases engagement without adding complexity, boosting ROI to existing benefits through an integrated experience rather than disconnected tools.

The top three Financial Wellness resources in 2025 were:³

• Retirement Estimator Calculator
• Why You Should Take Advantage of Your Company’s Retirement Match
• 5 Steps to Retirement Planning

7. Supports smoother, more confident retirement transitions

As employees approach retirement, holistic guidance helps them evaluate timing, income needs, and next steps—leading to more confident decisions and fewer last-minute surprises. Employees retire with clarity and confidence, employers experience smoother workforce transitions, and retirement readiness becomes predictable rather than reactive.

Partner with Ascensus for a healthier financial future

Financial wellness isn’t a “nice to have” benefit—it directly impacts how employees engage with their retirement plan and how employers manage workforce outcomes. When employees struggle with competing financial priorities, retirement savings often take a back seat. A holistic financial wellness program helps close that gap. With Ascensus, you don’t have to choose between improving retirement outcomes and supporting financial wellness, our solution delivers both—at the same time.

At Ascensus, we are committed to delivering trusted, transparent, and effective financial wellness benefits for employers. Let us help you build a more resilient and engaged workforce with a comprehensive financial wellness program integrated with a retirement solution. Take the first step today and partner with Ascensus to create a brighter financial future for your employees and your organization.

Interested in adding a retirement plan with an integrated financial wellness benefit? Contact us to get started. 

¹Mercer, 2025 Defined Contribution Practices Survey “Voice of the Plan Sponsor”
²PlanSponsor, Nov 3, 2025, “Financial Wellness Programs Can Help Improve Employee Performance”
³2025 Ascensus Financial Wellness Data