A new report reveals growing financial stress among American workers, which is affecting workplace productivity and individuals’ ability to manage debt, including medical bills. According to the report, 3 in 5 American workers are living paycheck to paycheck, with Gen Z and Millennials feeling the squeeze the most.
By the numbers:
- 78% of U.S. employers say their workers are financially stressed, up from 71% in 2023.
- 3 in 4 employers report that workers’ financial stress negatively impacts their business.
- American workers spend an average of three hours per week worrying about finances on the job.
- 68% of workers say financial stress impacts their mental health.
The big picture: Financial wellness benefits are becoming increasingly important for employee retention and productivity, while also potentially affecting debt repayment trends.Key findings:
- Debt concerns:
- 53% of workers have credit card debt, the most common type.
- Student loan debt is considered the hardest to repay, with 54% saying it’s most challenging.
- Only 25% of workers are “very confident” in managing their debt.
- Generational differences:
- Gen Z and Millennials are more likely to stay with employers offering financial wellness benefits.
- Gen X workers are least likely to have worked with a financial planner.
- Emerging benefits:
- 35% of employers offer lifestyle spending accounts (LSAs).
- 43% offer earned wage access (EWA).
- Both benefits see high usage rates among workers who have access.
Between the lines: The rise in financial stress and demand for financial wellness benefits could impact debt collection strategies and success rates.
