Offering a retirement plan is no longer enough to demonstrate that employees are financially prepared for the future. Although 85% of US employers provide retirement benefits, just 28% of employees believe their current savings strategy will enable them to achieve their retirement goals, according to new research from Gallagher.
The findings highlight a growing gap between access to retirement benefits and employees' confidence in their long-term financial security. Gallagher's 2026 US Financial Benchmarks Report examines how employers are changing plan design and financial guidance to improve employee outcomes.
Employers expand retirement planning support
The research found that 30% of employees aged 55 and older identify retirement planning as their biggest financial stressor. In response, employers are increasingly using plan features designed to encourage consistent contributions and help workers build savings over time.
Gallagher found that 57% of surveyed employers use automatic enrolment in retirement plans, while 33% use automatic contribution increases, also known as auto-escalation.
The shift is taking place alongside changes under the US SECURE 2.0 Act, which generally requires newly established 401(k) and 403(b) plans to include automatic enrolment, subject to eligibility rules and exceptions. The requirement applies to relevant plan years beginning after 31 December 2024.
Employers are also expanding access to financial guidance. According to Gallagher, 81% offer self-service financial planning tools, 68% provide one-to-one financial planning appointments and 64% offer advice on retirement plan enrolment and investment selection. Nearly half, 48%, provide managed account advice.
These measures reflect a broader move towards helping employees understand and manage their financial decisions rather than focusing solely on whether a retirement plan is available.
Financial wellbeing becomes a broader workplace priority
Retirement readiness is part of a wider financial wellbeing challenge. Gallagher found that 45% of employers said financial wellbeing had become more important within their organisations.
Employee responses also highlighted the connection between financial pressures and other aspects of wellbeing. Some 91% recognised a link between financial stress and mental health, while 74% said they consider financial circumstances when making healthcare decisions.
The findings suggest that financial benefits are increasingly being viewed as part of employers' wider approach to employee wellbeing. Retirement planning, healthcare affordability and access to financial guidance can all influence how employees experience their overall benefits package.
Employers face a gap between available benefits and employee confidence
The research indicates that providing financial benefits does not necessarily mean employees feel equipped to make long-term financial decisions. While retirement plans and digital planning tools are widely available, the low level of retirement confidence points to a need for stronger communication and more individualised support.
Gallagher's research was based on responses from 3,717 US organisations that participated in its Benefits Strategy & Benchmarking Survey between January and March 2026. It also incorporated findings from a separate employee-facing Financial Health Assessment involving 981 participants.
For HR and benefits leaders, the findings put greater emphasis on whether financial support is helping employees make informed decisions and build confidence in their financial future. The challenge is moving beyond benefit availability towards understanding whether employees can use those benefits effectively.
