Financial Wellness Benefits Market Expected to Reach $7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Financial Wellness Benefits Market, By Program (Financial Planning, Financial Education And Counselling, Retirement Planning, Debt Management, Others), By Platform (One-On-One, Online, Group), By End User (Large Businesses, Small And Medium-Sized Businesses): Global Opportunity Analysis And Industry Forecast, 2023-2032". The financial wellness benefits market was valued at $2 billion in 2022, and is estimated to reach $7 billion by 2032, growing at a CAGR of 13.8% from 2023 to 2032.

The financial wellness benefits market has witnessed significant growth trends which include more workers seeking financial wellness benefits from their employers to address money-related stress and plan for the future. In addition, companies are offering personalized financial wellness benefits industry programs, catering to individual needs and goals. Mobile apps and online platforms make it easier for employees to access financial advice and tools. Thus, these trends reflect a shift towards convenience, customization, and value for consumers in the financial wellness benefits industry.

Furthermore, major players in the market have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in November 2022, Student Freedom Initiative (SFI), Stackwell, and Prudential Financial introduced the Student Investment Program (SIP), a multi-year strategic partnership granting $500,000 in funding to students attending Historically Black Colleges and Universities (HBCUs) and other Minority Serving Institutions (MSIs) nationwide within the SFI network. The pilot program will distribute $1,000 grants to each participating student’s investment account on the Stackwell platform and will provide access to investment education and other resources to help increase their investing confidence and financial wellness to address the expanding racial wealth gap in the United States.

Further, in March 2022, Modern benefits brokerage Nava launched Nava Benefits Search Engine, an unbiased, community-driven discovery platform for employee benefits. Spanning more than 600 benefit offerings at launch, Nava's Benefits Search Engine obliterates traditional barriers to benefits discovery. This platform helps more than 155 million Americans get benefits, including healthcare, through their employer. But with employers as a primary distribution channel for benefits, what's less certain is how many Americans are able to access new-wave, digital-first benefits, which are often proven to reduce out-of-pocket spend and improve outcomes. Therefore, these financial wellness benefits market trends will help the financial wellness benefits market growth in the upcoming years.

By end user, the large enterprise segment attained the highest-growing segment in the market. This is attributed to the fact that the adoption of financial wellness benefits in large businesses is expected to continue growing due to several key factors such as growing awareness of the importance of employee financial well-being in attracting and retaining top talent. Meanwhile, small and medium-sized businesses are anticipated to be the fastest-growing segment during the forecast period. This is attributed to the availability of cost-effective digital platforms and apps have made it more accessible for SMBs to implement financial wellness initiatives. The trend towards personalized financial solutions and budgeting tools is likely to continue.

By region, the market was dominated by North America in 2022 and is expected to maintain this trend during the forecast period. employers are striving to make financial wellness benefits inclusive, ensuring that all employees, regardless of income level or background, can access and benefit from these programs. Therefore, employer adoption, customization, and growing demand are driving the growth of the market in the North America region. On the other hand, the Asia-Pacific is expected to grow as the fastest-growing segment during the forecast period. This is attributed to employers recognizing that financially stressed employees are less engaged and productive. To combat this, they are investing in financial wellness programmers to improve employee engagement, productivity, and overall job satisfaction. Therefore, diverse market landscape, digital transformation, and employee engagement are driving the growth of financial wellness benefits market in Asia-Pacific region.

The COVID-19 pandemic had a moderate impact on the financial wellness benefits market size. The economic uncertainty and financial hardships caused by the pandemic led to a heightened demand for financial wellness programs. Many employees faced job losses, reduced income, and increased financial stress, making financial wellness benefits more important than ever.  Furthermore, many employers recognized the importance of supporting their employees' financial well-being during the pandemic. As a result, they expanded their financial wellness benefit offerings, including access to financial education, budgeting tools, debt management resources, and financial counseling. Moreover, due to the pandemic remote work becoming the standard for many, there was a shift towards digital solutions for financial wellness benefits market growth.

Key Findings of the Study

• By program, the financial planning segment led the financial wellness benefits market in terms of revenue in 2022.
• By platform, the one-on-one segment accounted for the highest financial wellness benefits market analysis in 2022.
• By end user, the large enterprise segment accounted for the highest financial wellness benefits market share in 2022.
• By region, North America generated the highest revenue in 2022.