Financial wellbeing benefits and initiatives: Thinking outside the box

Some lateral thinking can help employers and reward leaders think beyond the role of traditional benefits and statutory contributions when it comes to supporting the financial wellbeing of employees.

More than eight out of ten (83%) HR leaders are concerned that personal financial worries are damaging employee productivity, according to Morgan Stanley's State of the Workplace Financial Benefits report (2025).

As we look beyond statutory pension contributions, life insurance and basic financial education, thinking outside the box means addressing the high-cost, high-stress life events that traditional benefits often neglect.

Here are some financial wellbeing initiatives that address the life stages which take the biggest hit on employee personal finances.

Bridge the healthcare gap

Private medical insurance (PMI) often excludes treatment for menopause, infertility, neurodiversity, endometriosis, PCOS, diabetes, mental health, gender affirming care and much more.

These conditions are often considered ‘elective’ or ‘lifestyle’ choices, while others are classified as a pre-existing condition or simply commensurate with ‘ageing’ so are excluded from health insurance coverage. It is not always easy to access support via public healthcare systems, so employees are faced with staggering, often unplanned for, out-of-pocket costs.

In a 2023 survey by Fertifa and Fertility Network UK, one third (32%) of people who went through fertility treatment said they were not prepared financially. For many, these costs are prohibitive, leading to debt or delayed treatment.

Employers that think outside the box are stepping in to cover these hidden healthcare costs with reimbursement plans or treatment funds. Providing an allowance for these underserved areas of healthcare ensures employees feel seen and supported and builds both brand loyalty and employee satisfaction.

Subsidies don’t always provide value

Not every organisation is able to fully subsidise treatment costs. However, "no budget" shouldn’t mean "no support."

Offering an interest-free payment plan allows employees to spread the cost of treatment over 12 months, such as an annual ticket loan for commuting. This removes the lump-sum barrier for employees, allowing them to access the care they need, whilst your company facilitates the solution without a direct cost to the business.

Close the gender pay and pension gaps

A 2025 report by the Women’s Budget Group showed that men in the UK retire with £78,000 more than women saved in their private pensions. The gender pay gap and associated pension gap are often the result of cumulative financial hits taken during caregiving years and menopause.

The financial stress of starting a family

Statutory maternity, paternity, or shared parental pay provides a minimum, but it rarely prevents a significant dip in household income and stretched finances.

Implementing a policy where all parents, regardless of gender, receive the same amount of paid parental leave and pay allows your employees to plan their families based on their career goals rather than finances.

You keep new parents earning, whilst removing the motherhood penalty by preventing any subconscious bias in hiring or promoting.

If it’s not possible to provide full pay throughout maternity or paternity leave, you could continue to provide full employer pension contributions whilst new parents are on any unpaid portion leave, to prioritise long-term financial security.

Addressing menopause

According to a CIPD report, Menopause in the Workplace 2023, more than a quarter of employees experiencing menopause said it has had a negative impact on their career progression, and one in 10 women left the workforce due to the impact of menopause symptoms, according to a 2024 Fertifa report.

Menopause support, including financial coverage for specialist consultations and HRT prescriptions, keeps senior women in high-earning roles for longer, allowing you to benefit from their years of experience.

Navigating life’s biggest transactions

Milestones such as pensions and parental leave can feel like a secondary priority for those who are looking to get onto the property ladder or to renewing their mortgage.

The process of securing a mortgage, especially in a volatile interest rate environment, is often handled in isolation, during lunch breaks, and can cause significant stress.

UK employers can offer up to £500 of tax-free financial advice per employee per year. Use this to bridge the gap by providing fully funded access to mortgage brokers and independent financial advisors (IFAs).

Traditional benefits and statutory contributions only help in supporting the financial wellbeing of your employees to a certain extent.

When thinking outside the box, reframe your mindset toward answering how this intervention will support a specific financial event in an employee's life.

When you solve a specific financial pain point, be it the cost of an IVF cycle or the pension deficit caused by maternity leave, you build a level of loyalty that a simple salary increase cannot buy.