The missing link in financial wellness: Estate planning as a stress-relief tool

In recent years, employers have made important strides in supporting employee mental health. Initiatives around mindfulness, therapy access and workplace flexibility are now more common than ever. 

Yet, financial uncertainty, one of the most significant causes of chronic stress, remains largely unaddressed in many wellness programs. Although budgeting tools and retirement plans are helpful, they often miss the critical component of estate planning.

Mental health initiatives fall short without addressing financial stress

HR teams are well aware that financial stress is a top concern for employees. According to studies, employees spend significant portions of their workday distracted by money worries. This burden affects productivity and directly undermines mental health efforts. 

Even the best mental health programs struggle to make an impact when financial anxiety is present. Employees may participate in meditation sessions or use therapy benefits, but these solutions only go so far when foundational financial questions remain unanswered. How will my family be cared for if something happens to me? What happens to my assets or debts? Will my loved ones be left in a difficult situation? Neither a budgeting app nor a general financial literacy seminar can address these heavy, frequently unsaid concerns. They require a unique approach that addresses the root cause of long-term financial stress.

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Bringing legacy planning into the employee wellness conversation

Legacy planning, encompassing wills, trusts, powers of attorney and beneficiary designations, is traditionally viewed through a legal or wealth management perspective. But it's time for employers to reframe it as a wellness tool. With estate planning integrated into financial wellness programs, companies help employees shift from uncertainty to clarity. This shift has deep emotional and mental health implications. When employees know they have a plan in place for their future and their family's future, a significant burden is lifted. This doesn't mean every employee needs a complicated estate strategy. For many, it's about having basic documents in place, understanding their rights, and knowing their loved ones will be protected. The goal is to empower individuals with tools that match their current stage of life and level of complexity.

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The emotional safety net employees didn't know they needed

One of the most undervalued outcomes of estate planning is the emotional safety it provides. Studies showed that 42% of U.S. adults negatively impact their mental health due to financial stress. With life's uncertainty, being able to control and protect the outcomes for oneself and one's family is incredibly stabilizing. 

For employees balancing work, caregiving and finances, estate planning offers a quiet sense of peace. It allows them to stop guessing and start feeling confident that their wishes are clear and their loved ones will be supported. This relief is beyond managing legalities and paperwork. It's the additional layer of safety that allows people to breathe and focus on living and working with fewer worries.

Financial benefits that adapt to employees — not the other way around

Modern employees expect flexibility, and that expectation extends into financial benefits. Amazon, a global e-commerce and technology company known for its vast online marketplace, tested the estate planning benefit with its employees. They completed nearly 16,000 plans, resulting in a total savings of $14 million on its first launch. The pilot was such a big success that Amazon made it an official part of the benefits program in 2023. 

It only proves that one-size-fits-all solutions no longer meet the needs of a diverse, multi-generational workforce. Estate planning is, by nature, personal. A new parent may be thinking about who would care for their children if something happened unexpectedly. A single employee in their 30s might want to make sure their healthcare decisions are in trusted hands. Someone close to retirement could be weighing how to pass on assets without burdening their family. Each of these situations calls for a different conversation and a different plan. The point is, employees don't want to be told what their priorities should be. They want tools that reflect where they are in life and the ability to make those decisions on their terms. That's a form of self-care and stress reduction that is often overlooked.

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Tailored solutions that actually reduce stress

HR leaders have an opportunity to lead the way in bringing personalization to life. Instead of offering another generic benefit, offer estate planning tools and education that inform, equip, and empower employees to choose what fits them. They could choose to draft a basic will, establish a power of attorney, or safeguard their digital assets. The impact goes beyond checkboxes. Employees who feel safe financially tend to show up to work with more focus, engagement and stability. They're better equipped to manage life's challenges, knowing that the future isn't a blurry unknown but one they can actively control from now on.