Targeted financial education is the ultimate 2026 workplace benefit

Everyone is grappling with the impact of the continuous rise in the cost of living. That, coupled with the tail end of end-of-year financial obligations, is increasing employees' financial strain, leading employers to see rising financial stress in their workforces. To effectively combat this issue and its well-documented consequences on workplace performance and employee health, employers can take proactive steps to prioritize their workforce's financial wellbeing. They should start with the two areas where employees are feeling the most pressure as the new year kicks off: managing rising health care costs and planning for 2026.

Health care costs and making the most of benefits

With nearly 60% of people describing themselves as "concerned" or "extremely concerned" about rising health care costs, and employers poised for the highest rise in health benefit costs in 15 years, Americans are worried about how they're going to pay for health care. At the same time, 86% of employees across all age groups are confused about their benefits, with the true value of these offerings often going untapped as employees struggle to navigate and fully understand their total rewards.

Employers can help employees not get lost in the minutiae of what's covered by their benefits and what isn't, instead keeping the bigger picture in mind: financial health.

Each employee's financial life is closely tied to the benefits provided by their employer, from their salary to retirement options to their health coverage. Alleviating the financial stress stemming from concerns about paying for health care requires providing employees with the resources to properly understand their benefits, avoid surprise expenses, and plan for emergencies.

Employee-specific financial guidance education sets each employee up with the information they need to make the best possible decisions during open enrollment, with an understanding of how their choices interact with one another. It's not just a benefit for employees; employers benefit too with a workforce that is more effective and efficient in their use of benefits and more engaged with total rewards offerings, resulting in lower administrative burdens for plan corrections, greater satisfaction with benefits, and better employee retention. After all, the more employees understand their offerings, the better they understand their financial position, mitigating the financial concerns that keep them preoccupied at work.

Set up strong starts for 2026

Finances are frequently the subject of Americans' New Year's resolutions – from better budgeting, to increasing retirement savings, to purchasing a home. Post-holiday season, many are also concerned about entering the new year with debt, particularly from high holiday spending, and realizing they didn't meet their savings or financial goals in 2025. With the topic already top of mind for employees as they recover from holiday spending and look towards the New Year, it's the perfect opportunity for employers to uplift financial planning resources and guidance.

Trusted, well-rounded financial wellness programs encourage budgeting and money management skills, debt reduction, credit score management, and important financial goal setting, mitigating the impacts of poor financial planning and financial stress. For employers, better financial planning leads to fewer 401(k) loans, more timely retirements, and increased employee retention, among other benefits. To tap into these benefits, employers should prioritize financial wellbeing benefits that set employees' up for success with personalized guidance, education, and planning.

Conclusion

It's a critical time for employees who are trying to make the best financial decisions for themselves and their families, with the pressures of health care costs, and financial planning for the new year all amplifying that stress. The best way to proactively protect employees from financial stress and all its long-term negative consequences personally and in the workplace is to equip them with the personalized financial guidance they need to set themselves up for success. This path forward can lead to better informed benefits choices, better financial habits, less financial stress, and happier, healthier, more productive workforces into the new year and beyond.

This article was originally published on BenefitsPro.