Why Voya Financial (VOYA) Is a Must-Have Play on Retirement and Workplace Benefits Growth

The demand for secure retirement plans and workplace benefits is exploding, fueled by an aging population, evolving workforce expectations, and state-level regulatory tailwinds. Voya Financial (NYSE: VOYA) sits at the intersection of these trends, leveraging strategic acquisitions and legislative momentum to position itself as a leader in the $13 trillion U.S. retirement market. Let's dive into why this stock is primed to deliver outsized returns for investors.

The Power of Strategic Acquisitions: OneAmerica Deal Supercharges Retirement Services

In late 2024, Voya executed a landmark acquisition of OneAmerica's full-service retirement plan business. This move added $60 billion in client assets to Voya's Wealth Solutions segment, pushing total defined contribution assets to $670 billion by early 2025. The integration has been a masterstroke:
- Scale and Efficiency: The combined business now serves 60,000 retirement plans and 8 million participants, creating economies of scale that lower costs and enhance services.
- Product Diversification: Voya now offers expanded solutions, including competitive ESOP (Employee Stock Ownership Plan) administration, a niche with growing demand as companies seek to retain talent.

The results? In Q1 2025, Wealth Solutions' adjusted operating earnings surged 11% year-over-year to $207 million, with margins expanding to 39.7%. This segment now accounts for over 80% of Voya's revenue, driven by fee-based income—a stable, recurring revenue stream.

PFML Legislative Tailwinds: A Gold Mine for Workplace Benefits

Paid Family and Medical Leave (PFML) laws are sweeping state legislatures, with 17 states now mandating programs by 2026. This isn't just altruism—it's a business opportunity. Voya is capitalizing by:
- Empowering Employers: Its Voya Leave Management (VLM) platform automates compliance with state and federal leave laws, a critical need as regulations multiply. Features like My Absence Voyage™ (a parental leave planning tool) and Family First (caregiver support) differentiate Voya in a crowded space.
- Data-Driven Insights: Voya's State of the States reports and employer surveys highlight the 72% of employees prioritizing health coverage over salary, aligning PFML's financial security goals with broader workforce needs.

The payoff? PFML programs boost employee retention and reduce turnover costs—a win for employers that also drives demand for Voya's holistic benefits solutions.

Asset Growth: The Numbers Are Stunning

Voya's organic momentum is undeniable:
- Wealth Solutions: Q1 2025 saw $30 billion in defined contribution net inflows, pushing total client assets to $694 billion—a 21% jump year-over-year.
- Investment Management: Net flows hit $7.7 billion in Q1, with 7% organic growth over 2024, underscoring demand for Voya's investment expertise.

Risks? Yes. But the Upside Outweighs Them

No investment is risk-free. Voya's Health Solutions segment faces margin pressures (2.7% in Q1 2025) due to integration costs from the Benefitfocus acquisition. However, management is addressing this with 21% rate hikes and underwriting discipline, aiming to stabilize margins.

Why Buy VOYA Now?

• Valuation: Voya trades at a 12.5% discount to its five-year average P/E ratio, offering a margin of safety.
• Regulatory Tailwinds: PFML adoption will only accelerate—states like Minnesota and Maine are set to launch programs in 2026, creating new revenue streams.
• Demographic Boom: By 2030, one in five Americans will be retirement-age, fueling demand for Voya's services.

Bottom Line: A Compelling Buy for Patient Investors

Voya Financial is a play on two unstoppable trends: the need for retirement security and the expansion of PFML laws. With its scale, strategic acquisitions, and technology-driven solutions, VOYA is uniquely positioned to capture this growth.

Action to Take:
- Buy VOYA if you can stomach short-term volatility.
- Hold for the long term—this is a 3–5 year story.
- Watch for Q2 2025 results (August 5, 2025) to confirm Wealth Solutions' momentum and Health Solutions' margin recovery.

In a market hungry for stability, Voya Financial is the real deal. Don't miss this chance to profit from America's quest for financial security.