Retirement Planning

Bridging the Gap: Benefits Employees Want vs Benefits Companies Offer We explore new survey data that reveals where financial benefits typically fall short—and what you can do about it at your company. Table of Contents: 3 benefit themes for employers to consider How to conduct a benefits gap analysis Survey results: The employee/employer gap In our 2023 Retirement Readiness Annual report, Betterment at Work surveyed 1,000 full-time U.S. workers to learn more about how retirement readiness and financial well-being have evolved in the last 12 months. We asked survey respondents to review and rank 11 potential benefits to determine what financial benefits employees currently have access to and which matter most. The results? Survey findings showed clear gaps in employee desires and the benefits being offered by their employers. To help explore these gaps, we’ve bucketed benefits into three themes that arose from the report’s findings: 401(k), financial planning, and education savings. 3 benefit themes for employers to consider As we reviewed the survey results, three themes emerged that employers can use to explore potential gaps in the benefits they offer compared to the benefits their workforces want. Theme 1: 401(k) benefits These benefits include: 401(k) plans 401(k) matching programs A 401(k) plan is the #1 desired benefit among employees. However, only 59% of employers currently offer access to a 401(k), up seven percentage points from the previous survey. That is positive growth, showing companies are continuing to recognize this as a crucial need for employees. If you don’t offer a retirement plan, you may want to explore 401(k) options that can help attract and retain talent. A 401(k) matching program was the #2 most desired benefit among employees. Less than half of companies offer a 401(k) matching program, with only 47% percent of workers receiving a match from employers. Of that group, 86% contribute enough to get the full match. It’s no wonder that 92% of those without a 401(k) match wish their employer would offer a 401(k) match—since these programs can help fast-track retirement savings and retain employees. Key takeaway for employers: Offer an easy-to-use 401(k) plan with a competitive matching program to attract and retain employees. Theme 2: Financial health and planning benefits These benefits include: Employer-sponsored emergency fund Flexible spending account (FSA) or health savings account (HSA) Wellness stipend Budgeting and savings tools Access to a live financial advisor Childcare support Employer-sponsored emergency funds were the #3 desired benefit. Only 8% of employers offer an employer-sponsored emergency fund. As the third most valued benefit for employees, this is the largest gap on the list. Our survey also found that 49% of employees said an employer-sponsored emergency fund would help reduce their financial stress. With 46% of employees reporting that they used their emergency fund during the past year, there is a great opportunity for employers to address. Flexible spending account (FSA) or health savings account (HSA) ranked #4. At number four on the list of most desired benefits, FSAs/HSAs are only offered by 37% of companies, which could be another important avenue for employers to explore. Furthermore, we found that 31% of employees said they would be enticed to leave their jobs for an FSA or HSA. Wellness stipends were #5 on the most desired benefits list. Wellness stipends are one of the larger gaps employers should consider. We found that 32% of employees said they would be enticed to leave their jobs for a wellness stipend. However, only 9% of companies offer the benefit. The increasing interest in wellness benefits reflects a growing awareness around mental and physical health in society. Employers who are equipped to meet this need clearly demonstrate their support for well-being in the workplace. Budgeting and savings tools ranked #6 on the list. Only 12% of employees offer budget and savings tools to employees. Similar to other benefits, over a quarter (26%) of employees would consider leaving their jobs for budget and savings tools. Examples include savings calculators, online budgets, educational resources, and the ability to link multiple accounts to see all savings in one view. With 78% of workers reporting that their finances cause them anxiety, financial tools may help them gain clarity and reduce the stress of their financial lives. Access to a live financial advisor was #8. Only 17% of companies offer access to a financial advisor. However, our survey found that 55% of workers with access to a financial advisor have met with the advisor in the past year, and that number jumps to 75% among small business employers. The top two reasons employees meet with an advisor are: retirement planning and investment advice. This data supports the idea of packaging your 401(k) plan with a financial advisor for a valuable employee benefit. Childcare support was the #10 most important benefit. Child care is expensive for parents to afford and for employers to offer as a benefit, which is likely why only 8% of companies offer it. But if you can afford to offer childcare support as a benefit, you’ll be assisting your employees with both convenience and a huge financial benefit, as the average cost of childcare is $11,582. Key takeaway for employers: Offering a benefits package that helps meet critical needs can go a long way with your employees. But you don’t have to offer everything. Rather, it’s important to understand your workforce’s needs to pick and choose which benefits will have the most meaningful impact. Theme 3: Student loan and education benefits These benefits include: Student loan 401(k) matching programs Student loan financial assistance or repayment programs 529 college savings plan Student loan 401(k) matching programs were the #7 most desired benefit. This is where paying for education and saving for retirement collide. With the passage of SECURE 2.0 Act, qualified student loan repayments made by employees can count as elective deferrals and qualify for 401(k) matching contributions from an employer. At the time of our survey, no companies offered this type of benefit, yet we found that 40% of workers currently have student loan debt that they’re responsible for paying down. Now, through Betterment at Work’s industry-first solution, employers can provide 401(k) matches on student loan payments. Student loan financial assistance or repayment programs ranked #9 on the list. Only 11% of employers were reported to offer student loan financial assistance or repayment programs. On top of that, we found that 21% of employees would be enticed to leave their jobs for financial assistance on student loans. 529 college savings plans ranked #11 on the list of most desired benefits. Only 5% of employers currently offer 529 plans, which is surprising since, according to research, 70% of parents are concerned about having enough funds to pay for college. Our survey also found that 26% of employees are currently saving money for education expenses, and of that group, only 45% currently use a 529 to do so. One of the main reasons is a lack of awareness around this state-sponsored plan. Savvy employers can use 529 plans to support the education savings plans for their employees. Key takeaway for employers: To help retain employees, create benefits programs that align with your workforce’s education-related needs, taking student loan debt into account as well. Also, as your workforce evolves, consider future employees and the potential education needs they may have. How to conduct a benefits gap analysis Employers can take the following steps to identify gaps and then implement new benefits that fit their workforce’s needs. Step 1: Make a list of the benefits you don’t offer You likely offer some benefits already. To conduct a gap analysis, you’ll want to focus on what you don’t offer. At this point, make a list of benefits you don’t offer with a description of each. Then compare the benefits you currently offer with ones you might want to add. You’ll likely want to avoid offering a new benefit that is similar in nature to a current benefit. For example, you may want to offer only one type of student loan benefit. Step 2: Run a cost analysis Now, you need to know if you can afford additional benefits. Create a mock budget to illustrate the financial impact on your business for each benefit. Be sure to model the estimated impact that offering each benefit may have on employee acquisitions and retention. This can be difficult to calculate, so consider different scenarios. What you’re really trying to do is calculate the ROI of each benefit’s ability to retain employees. After you run a cost analysis, eliminate any benefits from the list that your business simply cannot afford. (Bonus: Download our planning guide to calculating the ROI of your 401(k) plan.) Step 3: Survey employees Bring your team into the conversation. Once you’ve determined what benefits you can afford, survey your employees to measure their interest in each one. Be sure to include a clear description of each benefit and how it would be administered. A simple approach is to have employees rank benefits in order of most likely to use to least likely to use, and give them a chance to submit open-ended comments. For larger companies, you can also use more sophisticated polling methods such as MaxDiff surveys to identify the ideal mix of benefits for your workforce. Implement your benefits… Once you understand which benefits you can afford to implement, and which ones your employees value most, you’ll want to decide if you can provide the benefits in-house or if you need to partner with a benefits provider such as Betterment at Work. Survey results: The employee/employer gap The chart below shows a snapshot of the top 11 benefits ranked in order of most desired by employees with the percentage of employers who offer each benefit. Use this data as a starting point to help identify gaps in your financial benefits program. Bridge the benefit gap at your company Betterment makes it easy for small and mid-market businesses to provide a scalable 401(k) plan, plus offer additional benefits like 529 plans, student loan payment 401(k) matches, and 1:1 advice from our financial advisors. See how Betterment at Work can enhance your financial benefits package.

Why Gen Z is money-confident but confused about employee benefits Gen Z is financially confident but confused by benefits. This article explains why—and what employers can do to close the gap. Today’s youngest employees are entering the workforce with a mix of optimism and tech fluency that sets them apart from every generation before them. Through our 2025 Retirement Readiness Report, we’ve found that Gen Z is confident about their long-term retirement outlook, eager to adopt emerging financial tools like AI, and more likely than any other group to switch jobs for better financial benefits. But there’s a gap: Gen Z is also the least familiar generation with the financial benefits their employers currently offer. For HR and business leaders, this disconnect presents a clear opportunity. By modernizing how financial benefits are communicated—and delivering education in formats Gen Z already embraces—employers can strengthen engagement, boost retention, and set up younger workers for long-term financial success. The Gen Z paradox: Confidence without clarity Data from the 2025 Betterment Retirement Readiness Report paints a clear picture of this emerging workforce: High confidence: An impressive 88% of Gen Z report being at least somewhat confident they will have enough saved for retirement. This confidence, while potentially reflecting their longer retirement timelines, suggests a positive—though possibly unexamined—outlook on their financial journey. High desire: Strong financial benefits are desired by Gen Z as they plan their careers. 65% of Gen Z (the highest of any generation) are most likely to switch jobs based on financial benefits. Low familiarity: Despite valuing financial benefits, Gen Z employees are the least likely to be familiar with their current employer's benefits. Only 72% of Gen Z are familiar with their benefits, compared to 80% of employees overall. These data points about Gen Z come to life as a real-world challenge for business leaders: Younger employees are confident about retirement, care about benefits, but they aren't engaging with the details of your retirement plan. But there’s more to Gen Z’s story that can help modern business leaders understand this generation’s needs. Gen Z embraces the future (and you should too) Like many younger generations throughout history, Gen Z is comfortable navigating our new financial ecosystem that heavily leverages technology. Embracing AI: 34% of Gen Z are using AI technologies for financial advice, compared to just 22% of all employees. Interested in crypto: 46% of Gen Z are interested in crypto, significantly higher than Gen X (25%) or Baby Boomers (19%). Gen Z is digitally fluent and comfortable with innovative, often complex, financial concepts. It’s vital not to assume that they are uneducated about finances. That’s not the case. The real issue: The financial benefits delivery model of yesterday doesn’t fit Gen Z’s world of today. Here’s what you can do to start engaging Gen Z: The employer opportunity: Redesigning benefits education for Gen Z The solution isn't to hold another long, in-person presentation. It’s to meet Gen Z where they are: on their phones, with just-in-time, data-driven nudges. Here are three tips to help business and HR leaders communicate with Gen Z about financial benefits: 1. Make it mobile and bite-sized Gen Z consumes information differently. They expect instant, easily digestible content. Action item: Break down complex benefits like 401(k) matching into short, engaging videos (under 60 seconds), interactive infographics, and FAQ cards accessible via a mobile app. Think of benefits education like a social media feed that employees can scroll to digest information easily and quickly. 2. Leverage just-in-time nudges Don’t wait for annual enrollment. Deliver information before and when it’s needed. Action item: Implement smart, personalized nudges. For example, a new hire should receive a reminder about their 401(k) eligibility the day they are eligible to enroll, complete with a direct link. Or, a notification when they receive a raise, suggesting they consider increasing their deferral rate. 3. Integrate with tech tools Since Gen Z is already using tech for financial guidance, give them access to modern tools within your benefits platform. Action item: Choose a financial wellness partner that utilizes tech-driven personalization to provide relevant advice (e.g., “Based on your age and salary, here is what maximizing your match could mean for your retirement savings”). This approach mirrors the digital financial experiences they already prefer. Betterment can help you connect with Gen Z At Betterment at Work, we partner with employers to deliver a financial benefits experience built for today’s digital-first workforce. In addition to a modern, scalable 401(k) plan, we help you support your employees with: Easy-to-digest content: A financial planning hub with videos, webinars, and short articles that make financial education simple and accessible whenever employees need it. Digital advice: In-app retirement guidance and personalized emails that help employees navigate key 401(k) decisions. Chat support: With texting and messaging apps being the norm for Gen Z, we offer chat support (in addition to email and call) for all employees. See how Betterment at Work can help you offer financial benefits for a digital-first world. Learn more.