According to Lincoln Financial’s 2025 Wellness@Work Study, fewer than half of full-time employees feel financially secure. For many, that insecurity is compounded by a growing sense of benefits “FOMO”, or fear of missing out on valuable offerings they aren’t using or don’t fully understand. Whether it’s the rising cost of living, unexpected medical bills or the pressure to save money while managing everyday expenses, workers are feeling the strain. In fact, 41% of workers surveyed reported moderate to major medical bills in the past year, 61% believe they’re saving less than they need for retirement, and 78% are dealing with at least three competing financial priorities.
This lack of confidence doesn’t just affect personal wellbeing – it impacts employee retention, engagement and benefit utilization. Employers have a chance to step in to provide meaningful support beyond traditional benefits to help build confidence, clarity and long-term security.
Understanding the barriers to benefits
Lincoln’s research uncovered that 58% of employees believe they are at a point in life where they need to reassess their benefits. This isn’t just about major milestones like marriage or retirement; employees are navigating a range of life events – starting families, covering unexpected medical bills or caring for aging parents – that are prompting them to reconsider what coverage they need and whether their current benefits are enough to meet their personal and financial goals.
In the research, Lincoln found three key benefit offerings employers can provide their employees to help build financial confidence:
- Voluntary benefits such as accident, critical illness and hospital indemnity insurance help offset costs during both expected and unexpected life events.
- Financial wellness tools support budgeting, debt management and savings through employer sponsored plans and tailored educational resources.
- Retirement savings solutions such as managed accounts, guaranteed income solutions and target-date funds focus on offering more investment flexibility that aligns with employees’ risk preferences and life goals.
But without guidance, even well-designed benefit plans can feel overwhelming and out of reach.
Closing the benefits FOMO gap through education
Nearly 1 in 3 employees report experiencing benefits “FOMO,” about benefits they aren’t enrolled in but believe they should be. This sentiment is especially strong among younger workers, with 43% of employees in their 20s saying they feel they’re missing out. The reasons vary, but they often boil down to three core issues: lack of awareness, underestimating the value of available benefits and uncertainty about which options are right for them.
Many employees don’t feel confident navigating their benefits. Only 58% say they made the right choices during enrollment and half admit they aren’t very familiar with what their benefits actually offer. That lack of clarity can lead to underutilization of benefits, dissatisfaction with their offerings and potentially impact employee loyalty. In fact, the study found that when employees perceive their benefits to be strong, they’re significantly more likely to stay with their employer.
Education is the key to closing the benefits FOMO gap. 73% of workers say they want help from a benefits consultant to explain what’s available, what’s relevant to them personally and how to make the most of their options. Personalized support works. Employees who are very familiar with their benefits are more than twice as likely to say they get a lot of value from them compared to those who are less familiar. Familiarity also correlates with higher satisfaction in retirement plans and greater overall financial confidence.
Amplify financial wellness
Poor financial health doesn’t just impact employees’ wallets – it can impact their overall wellbeing. While most workers may define wellness in terms of physical or mental health, only 20% include financial wellness in that definition. Yet the data shows that financial wellness can be deeply intertwined with mental and emotional stability and productivity.
Financial wellness tools can play a critical role in helping employees feel more financially secure, encourage better savings habits and support long-term planning to provide clarity that instills confidence. In fact, 63% of employees who utilize financial wellness resources reported feeling a sense of financial security, and 9 out of 10 saw a positive mental impact.
Wellness can encompass various types of resources beyond tailored educational materials and tools. Some additional benefit solutions that surveyed employees are especially drawn to include student loan management (86%), emergency savings accounts (80%), and mental health support (79%). Similar to how well-managed benefit packages may have a positive impact on employee loyalty, financial wellness tools and resources also may help build a sense of security while managing debt, medical bills and inflation.
The path forward
For employers, the path forward is clear. First, invest in benefits education that offers clear, interactive materials and consultative support that helps employees understand what’s available and how it fits their needs. Second, promote financial wellness tools that meet the needs of employees to build a financially secure future. And third, explore retirement savings solutions that offer flexibility and personalization to meet employees where they are on their financial journey.
Confidence doesn’t happen by accident. It’s built through education, personalization and support. As life events continue to reshape employees’ needs and they look to their employers more for support, employers have a unique opportunity to transform their benefits strategy. By meeting employees' needs, and helping them make informed decisions, organizations can make benefits more beneficial while supporting their employees’ financial goals.
Sharon Scanlon is Senior Vice President of Group Protection Product and Workplace Solutions Marketing and Customer Experience at Lincoln Financial.
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