A Comprehensive Approach to Financial Wellbeing

A Comprehensive Approach to Financial Wellbeing
March 14, 2025 7 mins

A Comprehensive Approach to Financial Wellbeing

A Comprehensive Approach to Financial Wellbeing

There is an opportunity to develop a strategy around financial education in the workplace. Globally, our latest data finds 11 percent of employees receive financial education from their employer, but 37 percent expect it. How can employers bridge this gap?

Key Takeaways
  1. Financial stress is affecting employees around the world. Despite the importance of financial education, many workplaces lack adequate programs to address this need.
  2. Employers can offer financial education that focuses on three main areas: Managing daily financial obligations, building a financial safety net and saving for future needs.
  3. Different generations have unique financial priorities, and it is important for employers to enhance communication, particularly with younger employees.

Financial stress is a significant issue impacting employees. Inflation has only further exacerbated this in recent years, placing additional strain on the lowest earners. In some geographies, just 2 percent of employees report receiving retirement benefits,1 despite employer data showing much higher rates of retirement program offerings.

Part of the challenge in delivering comprehensive financial wellbeing solutions is the wide range of retirement benefits across the globe. Even with these differences, however, one thing is consistent: Many employers that offer retirement benefits fail to provide adequate financial education programs or guidance alongside them. This results in employers instead spending on programs that are underutilized, creating the potential for a significant knowledge gap when it comes to long-term savings and overall financial wellbeing.

Without financial education, employees may struggle to make informed decisions about their current finances, potentially creating future financial stress that impacts the quality and date of their retirement. This isn't great news for employers either, who may be impacted by reduced productivity of financially stressed employees and the cost of an aging workforce who can't afford to retire. Financially stressed employees have been known to have an average decrease in productivity of 8.1 hours per week.2

Tailoring Financial Education to Employee Needs

While retirement plans differ globally, the need for financial education is universal. But that education should still be personalized. According to Paul Gordon, Aon’s head of financial wellbeing in Asia Pacific, having a so-called “money mindset” is key. “Around six in 10 employees we work with don’t identify as spenders or long-term savers. What they respond to is incremental habit change rather than pure education.” It’s also important to consider regional differences. An effective program must account for culture, language, the role of family and the country-specific retirement income policy, adds Gordon.

Retirement savings is a top five benefit named by every generation surveyed in Aon’s 2025 Employee Sentiment Study. However, its ranking varies per generation.

1.5%

A one-year delay in retirement can increase employers' total workforce costs by up to 1.5 percent.

Source: Prudential

Ranking of Retirement Savings Among Most Valued Benefits
Generation Z Millennials Generation X Baby Boomers
#5 #5 #3 #1

While it’s not a surprise that older employees are more focused on retirement savings, the data highlights an opportunity to increase communication with younger employees to help them recognize the importance of starting their retirement savings at an earlier stage. Additionally, early and mid-career employees may need more resources around enrolling and contributing to retirement programs, while older workers might want information on when they should change their investments to a suitably risk-balanced portfolio.

The way this education is delivered is important and should continually evolve depending on where employees have more of a voice. “The traditional broadcast method of education, where a teacher talks and children learn, does not work well for adults,” explains Fleur Iannazzo, an associate partner for financial wellbeing in the United Kingdom. “Instead, financial wellbeing delivery for learners in the workplace should involve two-way conversations to build confidence and engagement.”

1/3

About a third of companies said they plan to increase their financial wellbeing support over the next two years.

Source: Aon’s U.S. 2024 Defined Contribution (DC) Employer Survey

Building a Financial Safety Net

Meeting employees’ short and long-term financial needs calls for a comprehensive point of view. Employers often only focus on one or two pillars but addressing all three is crucial.

3 Pillars of Financial Wellbeing

  • 01
    Financial Security for Today

    This is about the importance of managing day-to-day finances — particularly with increased inflation — thereby ensuring employees have the necessary knowledge and tools to handle their immediate financial responsibilities.

  • 02
    Financial Security for the Future

    This entails ensuring employees are well-prepared for retirement and other financial goals. Only 51 percent of those who prioritize retirement and financial wellbeing receive these benefits,3 leaving many potentially unprepared for their financial future.

  • 03
    Financial Safety Net

    This includes access to emergency funds, insurance and various financial protections that allow employees to manage unexpected financial challenges without resorting to costly debt.

Tips for Addressing Each Pillar of Financial Wellbeing

While companies may not have the resources or need to implement every tool, they should consider what makes the most sense for their workforce. Looking through the lens of these three pillars ensures both the short-term and long-term financial health of employees are considered. "Companies should embrace a principles-based approach with minimum standards across a range of financial needs," says Melissa Elbert, partner of Wealth Solutions in North America.

Financial Security for Today
  • Educate employees through workshops or other means on budgeting techniques for better income and expense management.
  • Provide financial tools like budgeting apps, financial planning software and access to advisors.
  • Implement counseling services and personalized advice on bills, debt management and other financial concerns.
  • Encourage savings programs with incentives like matching contributions or rewards.
Financial Security for the Future
  • Include options for maximum contributions and catch-up contributions (where allowed) for those nearing retirement age.
  • Provide educational workshops, tools such as retirement calculators and access to financial advisors to help with retirement planning.
  • Implement auto-enrollment in retirement plans to ensure employees start saving early.
Financial Safety Net
  • Establish emergency fund programs. This could involve automatic pay deductions directed into designated emergency savings accounts to provide a safety net for unforeseen expenses.
  • Promote existing company-provided insurance benefits such as life and disability insurance. These benefits can help employees manage unexpected financial burdens.
  • Provide voluntary benefits with discounts on insurance such as auto, life and disability. Only 38 percent of the employees who consider these benefits important reported having access to them.4 However, life insurance is a widely recognized benefit globally, suggesting that this result may be due to a lack of awareness among employees. This highlights both a need and an opportunity to enhance communication around this benefit.

29%

of companies said a top area of focus for financial wellbeing was emergency savings.

Source: Aon’s U.S. 2024 Defined Contribution (DC) Employer Survey

Wildfires Expose Lack of Disaster Response Plans for Employees

Wildfires Expose Lack of Disaster Response Plans for Employees

Two-thirds of respondents to Aon’s survey of organizations with employees in the wildfire-affected areas of Los Angeles5 had no disaster response plan in place but acted promptly to support employees during the crisis. The top three areas of financial assistance for affected employees were continuation of compensation, one-time emergency grants or stipends and emergency access to retirement funds. Eighty-two percent said they will review or improve their disaster preparedness plans. This scenario underscores the importance of establishing a comprehensive financial safety net for employees. Implementing emergency fund programs and promoting insurance benefits the company already offers can provide a buffer for unforeseen expenses.

The bottom line is many employees will benefit from employers taking a more hands-on approach than they currently are, assisting employees to make better financial decisions and take action. “From employee assistance plans for those in debt spirals to one-to-one or group coaching sessions, educating employees on their behavior toward money is fundamental to building confidence in managing finances,” says Oliver Walker, senior partner in Aon’s Wealth Solutions practice in the United Kingdom. This will in turn lead to a healthier, more engaged and productive workforce.

Aon’s Thought Leaders
  • Melissa Elbert
    Partner, Wealth Solutions, North America
  • Paul Gordon
    Head of Financial Wellbeing, Wealth Solutions, Asia Pacific
  • Fleur Iannazzo
    Associate Partner, Wealth Solutions, United Kingdom
  • Ji Chuan Leong
    Partner, Wealth Solutions, North America
  • Oliver Walker
    Senior Partner, Wealth Solutions, United Kingdom

1 ⁠Aon’s 2025 Employee Sentiment Study
⁠2 Navigating Financial Stress: Empowering Employees, Forbes
3 Aon’s 2025 Employee Sentiment Survey
⁠4 Aon’s 2025 Employee Sentiment Survey
5 L.A. Wildfires Highlight Urgent Need for Employee Support and Business Resilience

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

Terms of Use

The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. To use information contained herein, please write to our team.

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