As 2025 begins, Americans who pay attention to their investments are living in an economic paradox: the market is doing great, but it doesn’t feel great.

“Half of my job is like therapy,” explained Rich Cawthorne, President of HUB Retirement and Wealth Management in New England. The S&P 500 index has increased 50% over the past two years and people see it reflected in their investments, but prices of everyday goods are high, borrowing rates are not necessarily affordable and “we have talk of new tariffs and other economic policies that have never been done before.”

Cawthorne is a fiduciary, a type of financial advisor legally obligated to make recommendations in their clients’ best interests. When clients talk out their fears and anxieties, Cawthorne said their conversations can lead to constructive changes in retirement planning and wealth management.

This year, he’s reminding clients that while the future may feel uncertain, experts see a year of relative calm and, therefore, an opportunity for employers and individuals to fine tune retirement plans and prepare for any instability ahead.

(And while this article is written for employers, there’s plenty to learn even if you don’t own a business.)

Rethink the plan and reinforce resiliency with a trusted advisor

Benefits packages are a significant factor in attracting and retaining valuable employees, especially 401(k) retirement plans with an employer match. HUB retirement and private wealth advisors work with employers to develop a tailored retirement plan that can help an employer hit the trifecta: protect the bottom line, supports their workforce and builds resiliency through compliant optimization.

Critical actions this year will include reviewing plan fees, and reviewing, updating or implementing the plan’s investment policy statement (IPS), but employers who want to stay competitive with top talent should also be looking to enhance benefits packages they already provide.

The SECURE 2.0 Act of 2022 transformed retirement plans with operational changes and new features, like start-up tax credits to increase the ability for employers to offer plans. Other provisions give employers the opportunity to increase participation and improve employee engagement. For example, employers can now match their employees’ student loan repayments within their 401(k) plan, which can appeal to a wider talent pool. Additionally, they can create emergency savings accounts linked to their defined contribution plan.

Make sure the bases are covered

However, any enhancements to a plan will be for naught if employees are not utilizing their basic retirement benefits and resources. According to PNC Bank’s 2024 report on Financial Wellness in the Workplace, about  94% of employers offer a retirement plan, but only 81% of employees are enrolled. Meanwhile, the Department of Labor reports that half of all employers offer a match for employee contributions to a retirement plan, but almost three in 10 workers with access to the match don’t take advantage of it.

One simple strategy to boost engagement is switching to auto enrollment during onboarding or renewals. When making a minimum contribution is an opt-out process rather than an opt-in, HR departments or third party supports can help educate employees about retirement plans.

Expand benefits with financial wellness programs
Retirement readiness doesn’t just mean having a 401(k) plan. Often, employees could use guidance on saving, managing debt and having realistic financial goals. Employer-sponsored personal finance programs can alleviate employee stress and increase productivity in the workplace. They also create a sense of security and belonging, establishing the workplace as a valuable and trusted resource where employees will want to work for longer than average.

PNC Bank’s report also found that 78% of U.S. employers said their workers were financially stressed in 2024, compared to 71% in 2023. Almost all those employers who recognized their employees’ stress also saw how it negatively impacted their business.

Tools such as HUB FinPath give employees access to trusted financial coaches, unbiased guidance, and a comprehensive suite of interactive learning and planning tools to help them better manage their financial lives. A knowledgeable plan advisor can also analyze an employee’s financial situation and provide individual solutions. Knowing what Millennials might prioritize—like saving for a downpayment on a home—versus what Generation X employees might need—like planning college tuition payments—can help shape conversations about saving that will result in higher plan participation.

With the right strategies in place, and a trusted advisor by their side, businesses and individuals can turn today’s relative stability into long-term security. “No business owner should be Googling around to find this information,” said Cawthorne, “and if you found this article that way, your initiative deserves more.”

Contact HUB Retirement and Wealth Management to learn how they provide support to manage individual and group retirement plans.