A recent survey by Willis Towers Watson (WTW) reveals a growing financial strain among U.S. workers, with 88% struggling to meet basic living costs. Nearly half of employees (46%) are extremely worried about essentials such as food, healthcare, housing, and transportation. As a result, 44% of employees report living paycheck to paycheck, and 59% say money concerns are negatively impacting their overall wellbeing.
Older Workers Face Greater Financial Strain
For older workers, the situation is particularly concerning, and this financial pressure is leading to a sharp decline in retirement confidence. Almost half (46%) of employees over 50 now expect to work past age 70, a significant increase from previous years. Additionally, 79% of workers admit they aren’t saving enough for retirement, and only 52% feel they are on the right track. The delay in retirement and the shortfall on retirement savings are largely driven by the inability to save adequately due to the high cost of living and financial instability.
For U.S. employers, these findings highlight a critical need to enhance financial wellbeing support within their organizations. There is a clear disconnect between the financial support employees desire and what employers currently offer. While two-thirds of employees want their employers to focus on financial wellbeing, only 23% of employers consider it a top priority.
Steps to Help Ease Financial Pressures
Employers can take several proactive steps to address this gap:
- Financial Education and Resources: Providing employees with comprehensive financial education can empower them to manage their finances better and plan effectively for retirement. Workshops, webinars, and one-on-one financial counseling can make a significant difference.
- Enhanced Benefits and Support: Improving access to benefits that support financial wellbeing—such as offering emergency savings plans, better retirement options, and financial planning tools—can help employees feel more secure and prepared for the future.
- Flexible Financial Solutions: Offering flexible financial solutions—such as flexible spending accounts, debt management programs, and assistance with student loans—can help employees manage their immediate financial needs while also saving for the long term.
By prioritizing financial wellbeing, employers not only support their employees’ immediate needs but also contribute to their long-term financial security. This holistic approach can reduce stress, improve overall wellbeing, and create a more engaged and productive workforce. Addressing these financial challenges is not just about enhancing benefits; it’s about creating a supportive environment where employees can thrive both personally and professionally.
Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.