The "U.S. Financial Wellness Benefits Market - Industry Outlook & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The U.S. Financial Wellness Benefits Market was valued at USD 587.02 million in 2023, and is projected to reach USD 1.21 billion by 2029, rising at a CAGR of 12.91%.

The U.S. financial wellness benefits market is highly fragmented, with numerous top vendors and start-ups entering the space. These new entrants, including employee benefits providers offering EAPs, healthcare, and insurance, may lack extensive track records but are driving innovation and reimagining the financial services landscape, such as introducing micro-savings options as alternatives to traditional savings accounts. Notable U.S. financial wellness benefits market players include Prudential, Bank of America Merrill Lynch, Virgin Pulse, Mercer, and Financial Finesse.

In addition, the market has seen the entry of banks, credit unions, community-based non-profit organizations, and insurance companies, which primarily serve at-risk individuals. These entities often acquire or partner with smaller financial wellness benefits industry players. For instance, many 401(k) advisors are now collaborating with unbiased financial wellness partners to integrate financial wellness into retirement plans. Retirement plan consultants, in particular, are shifting their focus beyond 401(k) plans to make financial wellness the core of their business as the market trends in that direction and employers place their trust in these advisors.

The need to manage workplace stressors such as long working hours, quality of work-life balance, and increasing workplace competition are primary drivers of health and well-being programs in the United States. Following a prolonged period of slow growth, the company's profits have risen, further fueling the adoption of stress management programs. This financial improvement allows employees to better allocate budgets for these programs, leading to anticipated growth in the U.S. workplace stress management market over the forecast period.

Also, the U.S. workforce experiences higher health costs and potentially greater mortality from workplace stressors compared to workers in OECD countries in Europe. Increased awareness of the costs associated with workplace stress, the expansion of health insurance coverage, and the wider adoption of family-friendly work policies could significantly benefit U.S. workers. As a result, major U.S. financial wellness benefits market vendors are focusing on innovative ways to deliver financial wellness programs, leveraging digital technology to provide information through company portals and host virtual screenings.

The Southern region held the largest share of the U.S. financial wellness benefits market, accounting for over 34% in 2023. The Southern region consists of the following major states: Texas, Florida, Virginia, Georgia, and others. It has one of the largest numbers of companies and ranks the highest in terms of the number of employees in the United States.

Moreover, for Southern people, work, money, and the economy are leading sources of stress. Owing to the significant presence of companies and an employee base, the region holds the highest market share for financial wellness benefits. Furthermore, Southern U.S. employees strongly believe that stress management is crucial and can impact a person's health. Southerners acknowledge the role that financial wellness benefits programs can play in helping them manage stress and lifestyle or behavior changes.

MARKET TRENDS & OPPORTUNITIES

Growing Role of Wellness Champions

Wellness champions are playing a growing role in the success of wellness programs. This is because they are rooted in the idea that people are more likely to be influenced by the healthy behavior demonstrated by social influencers, which includes their family, friends, and colleagues. This position is based on motivating employees to compete and ensure their well-being collectively. These wellness champions act within a professional wellness program's pre-existing framework and rules. Others work with the wellness champions to help create initiatives and programs.

Companies such as Alyfe and EXOS work on finding these champions and creating customized cultures for better outcomes. Many of these vendors have found that wellness programs would be more effective if 1%-4% of the workplace population served as champions. Vendors seeking to harness this trend can collaborate with established groups within the employee population to improve awareness and engagement in wellness programs and seek feedback regarding program offerings and implementation.

Employers Take Onus for Employee Financial Wellness

According to the Bank of America survey, almost 4 out of every 10 employees feel financially ill. Historically, personal finance has been considered peripheral to an individual's wellness. However, it is becoming a core element of overall well-being. Employees no longer trust public social safety nets, so the private sector is stepping in to play a bigger role in financial wellness. Employees are optimistic because they believe they do not have to resolve their financial issues alone. Employees are looking at employers as a potential source of financial aid beyond retirement, as opposed to the family. Employers couldn't agree less; they are more aware of their role in investing in their employees' financial wellness and prompt employers to support them.

INDUSTRY RESTRAINTS

Misalignment in Financial Wellness Offerings

While employers are interested in taking care of their employees' financial well-being, they contribute to personal financial nervousness by eliminating safety nets. In addition, the base wages are kept to a minimum as employers reward their best-performing employees and do away with final salary pension schemes. However, they must align their programs with employee motivations and what they place a higher degree of value.

Also, since budgets and funding are limited, a lot of work on financial wellness programs and their implementation has been conducted by market players, thought leaders who advocate for them, those with a direct stake in the outcome, and onsite workers. Employees are largely left out. This often leads to bias and can result in a larger number of instances where employers are simply shooting in the dark. Thus, there is a gap between the financial wellness benefits delivered as being in employees' best interests and what employees want. Also, the impact of these programs on employees who often switch companies is under question.

KEY QUESTIONS ANSWERED

• How big is the U.S. financial wellness benefits market?
• Which region dominates the U.S. financial wellness benefits market?
• What are the significant trends in the U.S. financial wellness benefits market?
• What is the growth rate of the U.S. financial wellness benefits market?
• Who are the key players in the U.S. financial wellness benefits market?

Key Attributes:

Premium Insights

• Opportunity Pockets
• US Cost of Stress to Corporate Sector
• US Wellbeing by State
• Financial Wellness: An Overview
• Financial Wellness: Framework
• State of US Healthcare
• Economic & Demographic Analysis
• Population
• Income
• Generation & Age Trends
• Racial/Ethnic Trends
• American Workforce Analysis

Market Opportunities & Trends

• Growing Role of Wellness Champions
• Increasing Growth in Early Wage Access
• US Increasing Penetration of Gig Economy
• Huge Interest & Investment from Investment Companies
• Hijack of Term Financial Wellness
• Growing Influence of Data Analytics in Financial Wellness
• Administration of Targeted Benefits
• Integrating & Leveraging Existing Benefits

Market Growth Enablers

• US Changing Work Dynamics
• Rising Financial Wellness Incentives
• Employers Take Onus for Employee Financial Wellness

Market Restraints

• Misalignment in Financial Wellness Offerings
• Fiduciary Concerns Hinder Financial Wellness Efforts
• The Elusive ROI
• Low Employee Participation & Engagement

Key Company Profiles

• Bank of America Merrill Lynch
• Financial Finesse
• Mercer
• Prudential Financial
• Virgin Pulse (Personify Health)

Other Prominent Vendors

• Aduro
• Ayco
• BaySport
• Best Money Moves
• BrightDime
• BrightPlan
• Brightside
• Carelon Behavioral Health
• DHS Group
• Edukate
• Enrich
• Even (ONE@Work)
• Financial Fitness Group
• Financial Knowledge
• FinFit
• FlexWage
• Candidly
• GoPlan 101
• HealthCheck360
• Health Advocate
• Integrated Wellness Partners
• LearnLux
• LifeCents
• Limeade
• Mariner Wealth Advisors
• Money Starts Here
• My Secure Advantage
• Origin
• Payactiv
• Pro Financial Health
• Purchasing Power
• Questis
• Ramsey Solutions
• Salary Finance
• Savology
• Sqwire
• SoFi
• The Financial Gym
• Transamerica
• Your Money Line

Segmentation by Program

• Financial Planning
• Financial Education & Counseling
• Retirement Planning
• Debt Management
• Others

Segmentation by End-User

• Large Businesses
• Medium-Sized Businesses
• Small-Sized Businesses

Segmentation by Delivery

• One-On-One
• Online/Digital
• Group

Segmentation by Type

• Consumer Tools
• Employer Tools

Segmentation by Industry

• Healthcare
• Financial Services
• Education
• Manufacturing
• Public Sector

For more information about this report visit https://www.researchandmarkets.com/r/fwa4zf

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