Worry over finances continues to be a major source of stress in employees’ lives. In a recent survey, 57% of respondents cited financial stress as their top stressor—more than their job, health concerns, or relationship issues. That’s why financial wellness benefits remain an important component of today’s employee benefit packages. In this week’s blog, we explore the state of employee financial stress and its impact on the workplace, and why financial wellness employee benefits must be a part of every employer’s well-being strategy.
PwC recently released their 2026 Employee Financial Wellness Survey with some alarming findings on how employees are feeling about their finances:
- 59% of survey respondents say they’re stressed about their finances right now.
- 85% of Gen Z respondents agree that financial stress affects their mental health, and 71% report reduced productivity.
- 52% cite rising living costs as their greatest economic worry.
- Financially stressed employees are 5x more likely to be distracted at work.
- Half of those who are stressed about finances spend 3+ hours per week dealing with financial concerns.
In addition, the report finds many Gen X employees who are nearing retirement are considering tapping into their retirement funds early or delaying retirement altogether. This has an impact not only on employees’ personal finances, but also for workforce planning and healthcare spend.
Not surprisingly, employees are looking to employers for help. And it’s not just with planning for retirement. Twice as many American workers today are turning to employers for guidance and resources around near-term financial needs, compared to two years ago.1
According to Bank of America’s 2025 Workplace Benefits Report, 26% of the workforce is seeking help in areas such as emergency savings, paying down debt, and overall financial wellness, compared to 13% in 2023.2
Given the implications for the health and well-being of the workforce as well as the clear impact on productivity and engagement, it makes sense for employers to offer financial wellness benefits. Let’s take a look at what financial benefits are and the reasons why adding them is so important.
What are financial wellness benefits?
When it comes to finances, employers have traditionally focused on helping employees prepare for retirement through 401(k) plans. But there are so many important financial decisions that take place in the intervening years—sticking to a budget, buying a home, sending kids to college—where employees must fend for themselves.
This is where employee financial wellness programs come in. A financial wellness program works a lot like the components of a well-being program. In a well-being program, participants receive education and tools they need to manage their health. The same holds true for financial wellness—employers offer employees tools to manage day-to-day finances, weather unplanned expenses, and help them plan and save for future milestones—hopefully warding off financial crises and ultimately improving their overall health and well-being.
Examples of financial wellness employee benefits.
Whether you partner with an outside financial wellness provider or create an in-house program, you might consider offering employees:
- Online financial tools, calculators and apps to help with day-to-day budgeting, saving for college, retirement planning and more.
- One-on-one financial counseling services to help employees solve immediate financial concerns and financial coaching services to help set goals for the future.
- In-person or virtual financial education classes and seminars led by financial experts on topics of interest, like smart investing or easy ways to save.
- Access to debt management services to help with student loan repayment or paying down credit card debt. Some employers are even providing direct financial assistance with repaying student loans.
- Short-term loans or wage advances, which allow employees to get access to low-interest cash in an emergency and then repay the loan through payroll deductions spaced out over time.
- An Employee Assistance Program, which typically features its own financial tools and resources, including things like help with identity theft.
Not sure what your employees might want in a financial wellness program? Just ask. Pulse surveys are a great way to find out what your employees want help with. Once you gather information on the kind of financial wellness support they’re looking for, you can better cater your benefits to their specific needs.
6 reasons why financial wellness is a must-have benefit for employees.
Increased employee engagement.
Offering financial wellness benefits shows an employer cares about employee well-being beyond the work day and can contribute to a healthy workplace culture. According to Bank of America, 8 in 10 employers say that financial wellness resources help drive job satisfaction.
Enhanced productivity.
Employees who are financially stressed can be distracted at work and often devote work hours to handling financial issues. They also might need to take time off to handle financial matters, increasing absenteeism. Offering financial wellness benefits can alleviate some of this stress and help employees be more productive during the workday.
Better employee health and well-being.
Financial stress can cause physical effects like increased irritability, mood swings, appetite changes, stomach issues, fatigue and insomnia.3 In fact, the American Academy of Sleep Medicine finds 78% of respondents in a survey reported losing sleep over money matters.4 Left unchecked, these symptoms may lead to mental health concerns like anxiety, depression, or even suicide. Providing support for financial wellness can improve the employee population’s health, and possibly lower healthcare costs in the long run.
Increased retention.
Morgan Stanley’s State of Workplace Financial Benefits Study finds 91% of employees would consider switching jobs for benefits that better help them reach their goals. Among those workers, having more comprehensive financial benefits ranks as a high priority. A 2024 Sofi at Work study finds 3 out of 4 employees say these benefits make them more likely to stay with their employer.
Talent recruitment and employer brand.
Much like other well-being benefits, job seekers are looking for employers who offer perks and support for financial wellness. A Morgan Stanley at Work report finds over 8 in 10 employees believe their employers should more actively assist them with their financial issues, up 3 percentage points since 2024. Gen Z felt the most strongly about this at 95% agreeing, followed by millennials: 87%, Gen X: 80% and Baby Boomers: 66%.
Companies who offer these benefits may be viewed more favorably not only by job seekers, but also customers and the public, enhancing an employer’s brand and reputation.
It’s the right thing to do.
Educating employees about financial concepts, such as budgeting, saving, investing and debt management, can help improve the workforce’s financial literacy and lead to long-term financial stability, particularly for lower wage workers.
As employers respond to employees’ desire to receive support across multiple aspects of their well-being, it’s important to consider adding financial wellness benefits to the mix. Offering these benefits is a smart move for employers who want to improve employee satisfaction and increase engagement; raise productivity; enhance well-being; attract and retain top talent; and foster a positive company culture and healthy employer brand.
