The U.S. financial wellness benefits market is projected to reach $1.21 billion by 2029, rising at a compound annual growth rate (CAGR) of 12.91% after being valued at $587.02 million in 2023, according to a new report released today by ResearchAndMarkets.com.
The 138-page for-purchase report says the financial wellness benefits market is rapidly evolving, with a significant number of players competing for dominance. Startups and employee benefits providers—including those offering EAPs, healthcare, and insurance—have flooded the space. But it goes on to note that many of these entrants are relatively new and lack a solid track record.
It claims the financial wellness benefits market is witnessing a strategic shift as banks, credit unions, community-based non-profits, and insurance companies step in, primarily serving at-risk individuals. These players are leveraging acquisitions and partnerships to establish their foothold, often collaborating with smaller financial wellness providers to expand their reach.
A prime example, the report cites, is the growing collaboration between 401(k) advisors and independent financial wellness partners. Retirement plan advisors, in particular, are moving beyond traditional 401(k) plans to position financial wellness at the core of their services. This shift aligns with market trends and strengthens their credibility with employers, who increasingly seek holistic financial solutions for their workforce.
Wellness benefits market by region
In 2023, the report found the Southern region dominated the U.S. financial wellness benefits market, accounting for over 34% of the total share. Led by Texas, Florida, Virginia, and Georgia, the report said the region boasts the highest number of employees in the country. For residents in the South, work, money, and the economy remain top stressors, driving the demand for financial wellness benefits. The sheer concentration of businesses and workforce in the region cements its position as the market leader in financial wellness solutions.
The Western region secured a significant U.S. financial wellness benefits market share in 2023, fueled by high disposable income, tech-savvy consumers, and a strong emphasis on stress management programs. States like Utah, Washington, and Colorado are at the forefront of the growth, with the West ranking second in labor force size. With a mix of developed and fast-growing economies, the report found this region is poised for continued expansion in financial wellness adoption, making it a key player in shaping the future of the industry.
Comprising states such as Indiana, Illinois, North Dakota, Wisconsin, and Minnesota, the Midwest captured a significant share of the U.S. financial wellness benefits market. Growing awareness around financial health and workplace stress management is propelling rapid growth in the region. While the Midwest ranks third among the four U.S. regions, it boasts significant financial wellness awareness. Key states like Illinois, Ohio, and Michigan lead the charge with the largest employee bases and a dominant presence in the regional financial wellness benefits market. With increasing employer-driven initiatives and a strong labor force, the Midwest is set to witness exceptional market growth in the coming years.
According to the U.S. Bureau of Labor Statistics, the Southern region has the largest labor force at 66.2 million, accounting for about 39.6% of the nation’s total labor force. The Western region follows with around 43.5 million workers, representing 26%. The Midwest and Northeast regions have labor forces of approximately 34.3 million (20.5%) and 23.2 million (13.9%), respectively.
Market trends, drivers
Here are three major trends shaping the U.S. financial wellness benefits market—and how advisors can capitalize on them:
• Wellness champions are boosting engagement: Programs that leverage internal “wellness champions” are seeing higher engagement and better outcomes. These champions—often 1-4% of the employee population—act as peer influencers, helping drive participation in financial education and savings programs. Advisors can help employers identify and empower these individuals, enhancing plan utilization and overall program success. Firms like Alyfe and EXOS offer models advisors can leverage to recommend effective champion-led strategies.
• Surge in investment from financial and tech firms: Increased investment in financial wellness platforms—especially from asset managers and fintech firms—is reshaping the tools available to employers. In May 2024, Lincoln Financial Group and American Century Investments reinforced their collaboration, leveraging investment expertise and financial platforms to expand financial wellness offerings. Similarly, in April 2024, shareholders of American Century Variable Portfolios approved their adoption by the Lincoln Variable Insurance Products (LVIP) Trust, signaling a growing commitment to integrating financial wellness into investment strategies. Advisors should stay current on these evolving platforms and partnerships to recommend integrated solutions that combine retirement readiness with broader financial well-being.
• Incentives driving employee participation: One persistent challenge is motivating employees to engage with financial wellness resources. Advisors can support plan sponsors by implementing behavior-based incentives—such as cash rewards, gift cards, or point systems—to encourage savings, budgeting, and goal setting. According to a 2023 Bank of America survey, 22% of employers already offer such rewards, and that number is growing. Advisors who bring creative, incentive-based ideas to the table will add measurable value to the plans they serve. These trends signal a broader shift: financial wellness is no longer a “nice-to-have”—it’s an expectation. Retirement plan advisors who understand these dynamics and proactively guide sponsors through implementation will strengthen client relationships, improve participant outcomes, and differentiate themselves in a crowded market.
Market segmentation overview
The report notes the financial wellness market is multifaceted, with several key segments driving growth and shaping how programs are delivered and adopted.
• By type: Financial planning leads the market, offering structured support on budgeting, investing, and long-term goal setting. It’s essential for guiding individuals through life events such as home buying, education savings, and retirement preparation.
• By end-user: Large enterprises dominate the market, increasingly offering robust wellness programs that include incentives like discounts or cash rewards to help reduce employee financial stress.
• By delivery method: One-on-one delivery remains the most effective and widely used approach. Personalized financial counseling outpaces digital tools due to its ability to drive real behavioral change through tailored advice.
• By program model: The market is evolving toward blended solutions—integrating high-touch guidance with high-tech tools like AI-driven platforms. Employers are embedding these digital-first tools into everyday workflows for accessible and personalized financial support.
• By industry: The healthcare sector holds the largest market share due to high levels of stress and burnout among workers, who face unique financial pressures. Education is also a key growth area, as schools increasingly focus on financial literacy to equip students with essential life skills early on.
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data, providing the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. For more information about this report visit https://www.researchandmarkets.com/r/82zfih.
SEE ALSO:
• Lincoln Expands Financial Wellbeing Platform
• Financial Finesse, SecureSave Reveal Partnership Expanding ESAs
• New York Life Unveils Latest Financial Wellness Platform
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.