Ascensus Report Shows Employers are Prioritizing Financial Focused Benefits to Meet Shifting Generational Needs

After years of pandemic-driven disruption, U.S. employers are shifting towards a more deliberate phase of total rewards strategy, pairing tighter compensation planning with expanded benefits and a sharper focus on long-term workforce engagement. Ascensus—the leading independent technology and service platform powering savings plans across America—released its 2025–2026 Compensation, Retirement, and Benefits Trends Report, based on a survey of 594 U.S. employers across the country spanning 16 diverse industries. 

"Over nearly two decades of publishing this trends report, we have seen many developments in total rewards, but two recent shifts stand out," said Ascensus CEO Nick Good. "First, the post‑pandemic hangover is over. Employers that pulled back on benefits in 2020, and rebuilt them in 2022, are now offering programs at steadier, more sustainable levels. Second, the needs and preferences of Millennials and Gen Z are weighing more heavily on benefits decision-makers. As a result, we are seeing a greater emphasis on retirement readiness, financial wellness, mental health support, flexibility, and help with student debt, alongside careful cost management. The result is a more balanced approach that helps employers stay competitive and meet the long-term needs of today's workforce."

The 2025–2026 Compensation, Retirement, and Benefits Trends Report, led by Newport, an Ascensus company, highlights how organizations are evolving compensation packages and benefits strategies to remain competitive in today's tight labor market. The findings show employers moving away from reactive decision-making toward more stable, employee-centered approaches as they plan for the year ahead. Employers are balancing cost control with modern, workforce-centric benefits, reflecting a generational shift in workforce expectations. Programs like financial wellness and pay range transparency—now seen in over half of firms—are complemented by expanded mental health resources, flexible work options, and student loan assistance. These trends underscore how Millennials and Gen Z are reshaping total rewards strategies.

Key Findings from 2025–2026 Compensation, Retirement, and Benefits Trends Report

Employers are taking a disciplined, strategic approach to pay and incentives:

• 2026 salary increases are forecasted to range between 3.1% and 3.3%.
• Nearly 30% of companies offered midyear salary adjustments.
• Short- and long-term incentives remain central to compensation strategies.

Retirement and financial wellness are core to total rewards strategies:

• Nearly all employers (98%)  offer a qualified retirement plan; 56% match between 3–4.9%, and nearly 30% match over 5%.
• 91% of employers rely on advisors, and 65% of those relationships exceed five years.
• 77% of organizations already have or are planning to implement financial wellness plans.

Executives' benefits continue to be key for retention:

• Nonqualified deferred compensation (NQDC) plans remain vital for executives: 88% of eligible participants are CEOs, 70% VPs, and 38% directors.

Rising health plan costs are shifting approaches:

• One-third of employers saw 4-8% increases, with another third reporting higher costs.
• Cost-sharing is shifting to employees, and Health Savings Accounts (HSA) continue to rise.

Additional insights include:

• Two-thirds of companies (67%) now share salary ranges in job postings.
• 98% of companies report at least one qualified retirement plan; 16% offer multiple options.
• About half (47%) of organizations reported their plan offering auto-escalate.

"As employers look at their 2026 budgets, leaders are making even more deliberate choices about where to invest every dollar," said Mike Dunn, President of Newport. "Competitive retirement benefits, targeted incentives, and expert guidance are essential to developing strong compensation and benefits strategies to attract and retain top talent."