One of the most effective retirement planning tools an employer can offer may be one that isn't considered a retirement product. It's a wellness program. That's because an employee's health can either sabotage a retirement plan or enable it. A wellness program can be a long-term solution to a long-term challenge-maximizing an employee's potential for good health both before and after retirement.

The impact of health care costs after retirement is not hard to visualize. For example, a study conducted by the Employee Benefit Research Institute (EBRI) in 2010 showed that a moderately healthy couple would spend an average of $250,000 to pay for unreimbursed health costs over a normal retirement.

Health care costs also can derail retirement strategies before retirement. Just look at the growing number of baby boomers who say they want to work more years to make up for low retirement account balances (the "I'll just work till I'm 90" crowd). This year's Retirement Confidence Survey, conducted by EBRI and Greenwald & Associates, shows that the proportion of employees who plan to work past age 65 has risen dramatically, from 11% in 1991 to 37% currently.

The trouble is, health problems are preventing a large percentage of these employees from carrying out this strategy. The same EBRI study finds that more than half of current retirees left the workforce early due to health problems, disability or business changes at their employer, such as downsizing.

In a Principal Financial survey of growing businesses with 10 to 1,000 employees, conducted online during the second quarter of this year by Harris Interactive, 84% of workers said they view physical health as an investment in their financial future. Three quarters of those surveyed (76%) think that by spending time and money on their physical health now, they will avoid major health costs later in life.

While no amount of lifestyle control will alleviate some health problems, participation in wellness programs, particularly with effective coaching, is generating some impressive results. (See Len Strazewski's "Benefits Business" column in the August issue, page 16.) Improvements in weight control, blood pressure and other gauges are not only short-term victories, but also long-term ones-with the potential to dramatically boost chances for financial retirement success.

With the shift from defined benefit to defined contribution pension plans over the last generation, employees have had to learn to plan for their own long-term financial future. The lessons have been hard. Many employees have stumbled by undersaving and making investment mistakes, and the financial markets have dealt some cruel blows.