Confidence is the new workplace currency

Employees are under more financial pressure than they were only a few years ago. Rising day-to-day costs are the No. 1 barrier to saving for retirement, and fewer than half of full-time workers say they feel financially secure, according to Lincoln Financial’s 2025 Wellnes@Work survey. As a result, many are feeling the pressure when it comes to saving, retirement planning, understanding benefit options and feeling financially confident about the future.

That pressure shows in the way employees view their benefits. When people don’t feel financially stable, they are less confident about their benefit decisions, less engaged with their retirement plans and more likely to leave their employer. Lincoln Financial’s research shows that 87% of financially secure workers say they want to stay, compared with 63% of those who don’t feel secure. For employers and the consultants who support them, that gap matters.

The good news is that the path forward is becoming clearer. Supporting employees is less about adding more benefits and more about ensuring employees understand how benefits offerings work together in ways that help meet them where they are.

Looking ahead, two trends are increasingly reshaping workplace benefits and retirement planning, while building confidence is at the center of both.

Financial security is becoming the foundation of benefit offerings

Many employees find themselves balancing emergency costs, health care expenses, family responsibilities and debt. When one unexpected life event hits, savings and retirement contributions can be the first things to suffer.

Medical expenses continue to be a major challenge employees face. Even with health insurance, out-of-pocket costs can create stress. That’s where supplemental health coverage can play a bigger role than many employees realize.

Benefits such as accident, critical illness and hospital indemnity insurance can provide cash support when it’s needed most. That flexibility helps employees build financial resilience and instill confidence when it comes to protecting their savings and avoiding taking on additional debt.

What’s next is helping employees recognize that health benefits are not only about coverage. They’re about providing coverage designed to provide a layer of financial protection. Financial professionals, agents and brokers play an important role in helping employees understand how their benefits can work together, especially when it matters most. When employees feel more financially prepared for the unexpected, they are more confident in their ability to plan and save for the future.

Employees want confidence, not complexity

Employers are offering more benefits than ever. But employees have more decisions to make about health plans, voluntary benefits, retirement investments and wellness tools. Although flexibility is important, too much complexity can leave employees unsure whether they are making the right decisions.

What’s next is not fewer options, but better support in helping employees understand how those benefits work together. Research shows that workers who are very familiar with their benefits are more than twice as likely to say they get a lot of value from them. Financial wellness tools, benefits education and professional guidance can offer clearer direction and greater confidence.

The goal is to help employees take the next right step – whether that’s building up emergency savings, managing debt or increasing retirement contributions. Today’s wellness tools are evolving to meet employees where they are through assessments, personalized action plans and tracking their progress over time.

Access is another area where expectations are rising. Employees want help, but they want it on their terms. That means a mix of digital tools they can explore on their own time and professional support when questions come up. One-on-one guidance continues to play an important role in building confidence, especially for bigger decisions around retirement and coverage. Speaking with a financial professional or benefits consultant can help.

What’s next is a benefits experience that feels simpler and more connected. Employers and the advisors who support employees will need to focus less on how many options are available and more on how well those options help them feel prepared for both the expected and the unexpected.

What this means going forward

The direction of workplace benefits and retirement planning is clear. Confidence making decisions today creates lasting, positive changes – including a sense of financial security about the present and the future.

For financial professionals, agents and brokers, what’s next is focusing on:

• Addressing everyday financial challenges alongside retirement planning
• Making benefits easier to understand and use
• Treating enrollment as an ongoing opportunity to build confidence and retirement readiness

The workplace is not one-size-fits-all, and benefit strategies aren’t either. The path forward is a more flexible, practical approach that meets employees where they are and helps them feel supported today while preparing for tomorrow.

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Jimmy Reid is the executive vice president, president of Workplace Solutions for Lincoln Financial. Contact him at [email protected].