Building a benefits package that meets the needs and expectations of every employee is a challenge faced by all employers and, given the diversity of modern workforces, an extremely difficult one to overcome. 

The reality is that different demographics generally have different priorities when it comes to their health and wellbeing. For example, While a Gen Z employee might prioritise mental health apps and ergonomic home-office setups, a colleague in their 40s might be navigating the complexities of perimenopause or the high costs of fertility treatments. 

Today, we’re seeing more employers recognise this diversity by building flexible benefits packages designed to be tailored and adjusted to an individual’s specific health and wellbeing needs, and a leading example of this is the growing popularity of Lifestyle Spending Accounts (LSAs).

In this article, we’ll take you through what how Lifestyle Spending Accounts work, the measurable benefits to health and wellbeing employers have reported, and how you can implement one through a provider like Fertifa.

What is a Lifestyle Spending Account (LSA) and what do they typically include

An LSA is an employer-funded, post-tax stipend that provides employees with the autonomy to spend on the specific health and lifestyle services that matter to them. LSAs are funded by the employer as a taxable benefit, giving the company the freedom to decide exactly what is eligible—ranging from physical fitness to family-forming and even everyday essentials. 

It’s no surprise therefore that more and more companies are implementing them into their benefits packages. According to a 2026 report, adoption of LSAs has more than doubled since 2024. In fact, for employers requiring full-time office attendance, interest in LSAs is projected to rise to 48% within the next year as a key strategy for retention.

What do LSAs typically include?

The primary purpose of an LSA is to support lifestyle health—the proactive, daily habits and specialised care that prevent long-term illness and improve quality of life.

Modern LSAs are often structured around several core pillars: 

• Physical health and wellbeing (99% of plans): This can range from Gym memberships to specialised nutrition plans and, often, provision of weight management medications such as GLP-1s. If this is something you are considering at your organisation, be sure to read our free guide on how to implement a weight management benefit which you can access using the link below!
• Family support & reproductive health (94% of plans): This is where LSAs truly shine. They can cover the gaps left by traditional insurance, such as egg freezing, adoption fees, or private fertility consultations if an employer chooses to partner with a specialist partner like Fertifa.
• Hormonal & life-stage health: Specialist support for menopause, perimenopause, and men’s health (including TRT or diagnostic testing).
• Mental health: Therapy sessions, meditation subscriptions, or even "stress-relief" activities like hobby classes.

Why employers are turning to LSAs

Often, traditional healthcare benefits that take a "one-size-fits-all" approach result in low engagement and uptake, especially when the areas of healthcare they cover are not relevant to many in a particular workforce. The dynamic nature of LSAs offer a solution to this:

• Higher engagement: All-inclusive LSAs see an average 93% participation rate, significantly higher than single-purpose benefit. 
• Cost control: Employers set a fixed budget per employee, meaning there are no "runaway" premium increases; you only pay for what you allocate. 
• Talent attraction: In a market where 92% of workers say it is important to work for an organisation that values their emotional and psychological wellbeing, an LSA is a powerful demonstration of commitment to someone considering their next professional move.

How to implement an LSA through a provider

Transitioning to an LSA model requires more than just a budget; it requires a digital-first approach to ensure the administrative burden doesn't fall on your HR team. Here are three steps you can take to get started:

1. Consolidate and strategise

The most successful LSAs don't necessarily require "new" budget. Many companies are consolidating underused, fragmented benefits—like a rarely-used office snack budget or a niche discount portal—into one flexible LSA pot. 

2. Choose a partner that prioritises clinical care

When choosing a provider, don’t settle for one that only provides reimbursements without ongoing care. For health-related spend, employees need more than just a way to pay; they need guidance. A provider like Fertifa offers a unique advantage by combining the financial flexibility of an LSA with in-house clinical expertise. This ensures that when an employee uses their fund for any of the underserved areas of healthcare we cover, they are also getting best-in-class clinical support. 

3. Ensure your people know what their LSA entails and how to use it

The "Lifestyle" in LSA can be broad, so help your employees understand the possibilities. Use your launch to highlight specific health journeys, such as: 

"Did you know you can use your LSA to fund a private consultation with a menopause specialist or to cover the costs of your initial fertility diagnostics?"

Why Fertifa is the Ideal LSA partner to support employees with their Lifestyle Health

At Fertifa, we believe that healthcare should be as individual as the person receiving it. Our Lifestyle Health pathway is built on the understanding that sustainable health habits—from weight management and nutrition to hormonal balance—are the foundation of a productive, happy workforce.

By partnering with Fertifa for your LSA, you can provide your team with:

• Specialised clinical support whenever it’s needed: We don't just process claims. Our app provides 1-to-1 access to doctors, nurses, and wellbeing advisors that are there for patients throughout their journey and beyond.
• Reimbursements: We help to relieve the administrative burden on HR teams by processing reimbursements ourselves.
• Closing the gap in reproductive care: Whether it’s supporting an employee through IVF, providing GLP-1 prescriptions for weight management, or assessments for neurodiverse conditions, Fertifa ensures your LSA funds are spent on high-impact, clinical-grade care.