Financial stress is one of the biggest challenges facing the U.S. workforce, with 88% of employees reporting regular financial anxiety¹ and 45% of U.S. households projected to run out of money in retirement.² This stress directly impacts morale, engagement, and productivity, making financial wellbeing a business imperative—not just a “nice-to-have.” HR leaders now face the urgent task of supporting their workforce with robust, efficient retirement benefits that support employees’ futures, manage costs, and help maintain a competitive edge.

The Hidden Cost of Financial StressFinancial stress is widespread, affecting employees at every level. According to Aon’s 2025 Employee Sentiment Study, only 11% of employees receive financial education from their employer. Notably, 53% of U.S. employees say employers should help them save for retirement or long-term needs, making this a top workforce expectation. Financially stressed employees lose an average of 8.1 hours of productivity per week.³ Rising inflation and cost of living pressures further strain those without strong retirement benefits.

Despite the recognized importance of retirement savings, many organizations do not pair these programs with comprehensive financial education. The result is underutilized benefits, knowledge gaps, and a workforce less prepared for retirement. This can threaten employees’ long-term security and increase the risk of delayed retirements—raising workforce costs by as much as 1–1.5% for every year retirement is postponed.³

Meeting Employees Where They Are: A Multigenerational Approach
Retirement readiness varies widely across generations. While retirement savings are a top concern for Baby Boomers, they rank lower for Millennials and Generation Z. Younger employees may not fully recognize the importance of saving earlier in their careers, while older workers often seek guidance on managing risk and withdrawals. Generation X and Baby Boomers are the most dissatisfied with their benefits, highlighting the need for tailored support.³

Effective financial wellbeing strategies are tailored to these differences. Leading organizations address three pillars: managing daily obligations, building a financial safety net, and preparing for the future. The most successful programs go beyond education, offering personalized support through workshops, digital tools, and access to advisors. A behavior-based approach empowers employees to understand their own money attitudes and make smarter financial decisions, regardless of their life stage.

Read the full article here: