NFP, an Aon company, has released its 2025 US Retirement Trend Report, revealing a gap between employees' trust in financial advisors and their actual engagement with employer-sponsored retirement plans.
While 89% of employees trust the advisors provided through their employer, only 41% actively use them, leaving insurers and plan sponsors with untapped opportunities to strengthen client relationships and improve coverage outcomes.
Limited access to financial guidance a key factor
According to the report, just 36% of surveyed employees can meet one-on-one with financial advisors but nearly two-thirds who do find the support highly valuable. For insurers, this demonstrates the potential to deepen policyholder engagement by integrating retirement advice into broader benefits strategies.
The report also highlights a confidence crisis among employees, with only one in three feeling prepared for retirement. According to the report, economic pressures and uncertainty are eroding trust, a trend insurers must consider when designing products and communications. Financial stress affects employees' mental, physical and family well-being, which can influence insurance uptake, claims behavior and long-term policy engagement.
Employee hesitancy to engage with advisors is often linked to concerns about affordability, sales pressure or data privacy. Insurers that present financial guidance as a neutral, advisory service rather than a transactional sales channel are more likely to see higher participation and stronger loyalty.
Visible awareness gaps
Although 86% of employers provide at least one investment vehicle and 73% offer 401(k) plans, nearly half of employees are unaware of these options, the report said. Among those who understand their benefits, three-quarters actively participate, illustrating that education and clarity drive engagement.
Digital access is another differentiator. Employees prefer flexible, private engagement through online resources or virtual advisor meetings. Insurers can leverage digital channels not only for education but also to deliver integrated retirement and insurance solutions, enhancing the customer experience.
The findings showed that retirement readiness is both a financial and insurance concern. Insurers that collaborate with employers to provide accessible, personalized guidance and clear information can strengthen policyholder trust, increase coverage uptake, and position themselves as long-term partners in clients’ financial wellbeing.
