In August 2024, the Internal Revenue Service issued Private Letter Ruling 202434006,54 allowing an employer to offer employees flexibility in allocating non-elective contributions among various tax-favoured benefits. This ruling enables employees to direct employer contributions to: –401(k) or similar retirement plans to enhance retirement savings –Health savings accounts with tax advantages to cover medical expenses –Retiree health reimbursement arrangements to fund future healthcare costs –Assist with student loan repayments This flexibility enables employees to align employer contributions with their individual financial priorities, such as accelerating student loan repayment or bolstering healthcare savings. The ruling reflects a growing recognition of diverse employee financial needs and promotes innovative benefit structures that support financial well- being. Adopting such flexible matching contribution programmes also enables employers to enhance employee satisfaction and retention while addressing the varied financial challenges faced by today’s workforce.3.3 Spotlights on innovation Many companies have taken innovative approaches to employee financial well-being to empower their employees at all life stages while promoting a culture of financial health during the working years and in retirement. Employers are advancing financial well-being in the following ways: –Employers such as the Bank of America are implementing financial wellness programmes that provide access to advisers, budgeting tools and educational workshops to help employees manage their finances and plan for retirement.49 –CVS Health provides an employee relief fund that offers short-term financial assistance to employees facing significant hardship. Funded by employee contributions and an initial company donation, the programme provides tax-exempt grants of up to $3,000.50 –British retailer Tesco offers a range of financial well-being initiatives, including access to low-cost loans and early access to earned wages.51 –Companies such as Adobe promote a culture of financial well-being, offering one-on-one financial coaching in addition to encouraging peer-to-peer support on questions concerning finances, in this way integrating financial well-being into overall well-being strategy.52 –Siemens Healthineers in Germany has redesigned its company pension plan to provide an enhanced level of contributions for part-time workers and a bonus contribution for those in apprenticeships or vocational study programmes who are taken on as employees, enhancing financial well-being and reducing the gender pension gap.53 –Innovative providers such as NorthStar, Nudge and AdditionWealth provide financial services as a benefit through the employer channel, leveraging behavioural principles and hyper-personalization to support workers with their overall financial health. By supporting employee financial confidence, these programmes can potentially enhance productivity, job satisfaction and loyalty, serving as scalable models for global financial well-being initiatives throughout the private sector.Employer solutions for comprehensive financial wellness programmes Employee-directed employer-matching contributions in the United States Future-Proofing the Longevity Economy: Innovations and Key Trends 2626

Future Proofing the Longevity Economy 2025