Transamerica Unveils New Insights on Employee Financial Wellness Programs
Transamerica today released its latest report from the Prescience 2026 Council, highlighting critical trends in employer-provided financial wellness programs and their impact on retirement. This fifth report in the series provides a deep dive into the future of financial wellness benefits, showing how they can shape the retirement landscape for employees, employers and stakeholders across the retirement plan ecosystem.
The Prescience 2026 Council's latest report offers invaluable insights into the future of financial wellness programs and serves as a guide for employers and plan sponsors looking to enhance their retirement plan offerings.
"Our latest Prescience 2026 report sheds light on the evolving landscape of financial wellness programs,” said Laura Gaynor, Transamerica’s defined contribution practice leader. “As employers seek innovative ways to support their employees' financial well-being, these insights offer a potential roadmap.”
The report, along with other findings from the Prescience 2026 series of reports, can be accessed online at transamerica.com/prescience.
For purposes of this poll, Transamerica defined “financial wellness program” as a program offered through employers to address employees’ personal financial well-being concerns through their retirement plans and/or voluntary benefits, and digital tools and resources such as one-on-one coaching and consultation. Financial wellness programs may offer training to hone budgeting skills, address management of financial stress, identify short- and long-term financial needs and monitor progress against goals over time.
Among the findings of Transamerica’s report:
- Expected Availability of Wellness Programs: The Prescience 2026 Council predicts that 47% of employers will offer a comprehensive financial wellness program by the end of 2026. This availability is driven by the increasing need for financial wellness support among employees.
- Program Costs and Delivery: Panelists suggest that 34% of employers will cover the full cost of financial wellness programs, while 17% believe employees will bear all the costs. When it comes to service delivery, virtual assistance is expected to play a significant role, with 37% of employers likely to offer automated assistance via chatbots or avatars.
- Utilization and Impact: The report suggests that utilization of financial wellness programs is unlikely to significantly vary regardless of how the service is delivered, with live coaching expected to drive marginally higher utilization (24%) compared to chatbots (23%). The ROI (return on investment) of these programs can be challenging to calculate, but 67% of panelists believe that employers that pay a fee will expect a financial return on investment.
- Employee Satisfaction and Privacy: Most panelists believe that employee engagement and satisfaction are critical metrics for measuring success of financial wellness programs, with 93% indicating that engagement is a key success metric. Data confidentiality concerns are an issue for panelists but not viewed as a significant barrier to program utilization, with 37% of panelists indicating that it could be an obstacle.
The report also addresses other factors influencing employer decisions to implement financial wellness programs, including employee benefit costs (83%), employee retention (77%) and employee engagement (70%). Panelists responses suggest that employers without a financial wellness program may find themselves at a disadvantage in the competitive landscape of recruiting and retaining talent.
The Prescience series is a multi-year initiative by Transamerica to uncover trends and opportunities in the employee benefits landscape. The Prescience 2026 Council comprises industry experts, thought leaders and visionaries who work collaboratively to analyze market trends and provide actionable insights. Each survey in the series asks council participants to forecast expectations on a different aspect of employee benefits.
Transamerica is a leading provider of retirement and workplace solutions, committed to helping people build a more secure financial future. Through innovative products and services, Transamerica empowers individuals and organizations to achieve financial wellness and retirement readiness.
The insights and opinions expressed in the Prescience 2026 report are those of the Council and do not necessarily reflect the views of Transamerica. The report was fielded in December 2023, and relevant legislation or regulatory proposals introduced afterward may not have been considered by the Council.