This year has been marked by a sense of stabilization within the economy, as stock markets surge,
The prevalence of short-term financial anxiety has far-reaching implications for workplaces, and many employers are eager to seek ways to help alleviate this. As employers and benefits advisors prepare to reevaluate benefits packages for 2025, it's important to understand their financial stressors and the key benefits that would make the most impact.
Anxiety rises over everyday costs of living
While optimism about the future is on the rise, many workers are still heavily anxious about their day-to-day financial reality. Our survey found that the number one financial stressor facing workers today was inflation's impact on cost of living. The
Read more:
Additional top employee stressors included credit card debt, housing costs, and medical bills, underscoring the challenges U.S. workers are facing navigating critical expenses. In addition to rising credit card debt, we found that workers are doing something more concerning to cover emergency expenses: 54% are tapping their retirement funds.
For some, this is likely attributable to a lack of sufficient emergency funds. Just 25% of workers with "moderate to significant financial instability" reported having an emergency fund compared to 82% of those who felt at least somewhat financially stable, likely leaving those workers with more frequent needs for an emergency fund without a place to turn that isn't their retirement account.
We also saw an interesting contrast between retirement confidence and retirement readiness. While nearly three quarters (72%) of respondents reported they feel at least somewhat confident that they'll be able to save enough to support themselves in retirement, we observed a gap between respondents' savings goals and their expected savings: Only 38% expect they'll have at least $500k saved for retirement, despite 56% believing that's how much they'll need to have saved up.
We're also observing huge variance in what Americans believe they need to have saved in order to retire: Over one fifth (21%) of respondents believe they'll need less than $100,000. It's clear employees need better financial education and tools to support their near- and long-term financial goals, leaving a gap employers can help fill.
Read more:
Financial challenges impacting mental health, workplace productivity
What impact are these challenges having on employee mental health? 62% said that finances cause them moderate to significant anxiety, and anxiety levels have increased since 2023. The impact of this anxiety is not confined to employees' personal lives. It's also impacting their work, leading to decreased productivity and engagement.
Over half (51%) of respondents said that financial anxiety has made it difficult for them to focus, or do their best job at work over the past year. What's more, nearly one in five respondents say that financial anxiety impacts their ability to do their jobs "all the time" — underscoring why this is a critical challenge employers should help solve.
Demand for stronger financial benefits
The current financial landscape for workers underscores an urgent need for employers to prioritize modern financial wellness offerings as part of their benefits strategies. Employees are increasingly looking for holistic support that addresses everything from immediate financial concerns, all the way through to retirement.
According to our research, the most in-demand benefits workers are seeking include:
- 401(k) benefits: Access to retirement benefits is improving, but there's still work to be done. The number one most-desired benefit was a higher 401(k) matching program (55%). Meanwhile, 40% are seeking access to a retirement plan in general.
- Emergency savings support: Programs that help employees build a financial cushion for unexpected expenses are in high demand: 40% of workers would like access to an employer-sponsored emergency fund.
- Wellness & financial support: Facing higher living expenses, 33% of workers are seeking wellness stipends. 29% want access to a flexible spending account (FSA) or a health savings account (HSA).
- Tools & advice: In addition to financial benefits, workers are also keen for greater support. 21% want access to a live financial advisor, and 24% would like their employer to provide budgeting and savings tools to help them make more informed financial choices.
- Education benefits: As the cost of college continues to
grow , employees are placing a higher premium on benefits tailored to helping them manage this expense. Eighteen percent would like their employer to offer student loan financial assistance or repayment programs, and another 18% would like their employer to match their student loan payments with a contribution to their 401(k), allowing them to save towards both goals at once.
Read more:
And in this environment, we found that workers aren't just considering these benefits "nice to have:" They're actually willing to leave their current employer for another company that offers these benefits.
Giving employers a competitive edge
Investing in these types of benefits isn't only about supporting employees; it's also a strategic move for businesses. Offering strong financial wellness benefits can be a key differentiator for attracting and retaining top talent. From our findings, we know that employees are more likely to stay with companies that demonstrate a commitment to their overall well-being — not only driving loyalty, but also contributing to improved productivity by reducing financial stress.
As employers plan for the year and face an uncertain economic road ahead, the message from workers is clear: financial wellness matters. In 2025, the companies that thrive will be those that go beyond the paycheck, offering tools and resources that empower employees to manage today's financial realities while building confidence in their futures.
