A deep dive into financial wellness

Driven in part by a higher cost of living and inflation, double the number of workers are turning to their employers for help with their pressing financial needs, such as emergency savings, reducing debt and general financial wellness, according to Bank of America’s 2025 Workplace Benefits Report. 

More than 1 in 4 workers wanted company assistance, compared to 13% in 2023, per the report, which was conducted in partnership with Bank of America Institute.

“The modern employee wants help with their broader financial goals,” Lorna Sabbia, head of workplace benefits at Bank of America, said in a news release.

Based on nationwide surveys of nearly 1,000 employees and 800 employers, the report found that 54% of larger employers provide financial wellness programs, while only 32% of smaller businesses do.

Nearly half of America’s workforce — an estimated 76 million women — feel that their well-being is on the decline.

A recent survey by Guardian indicated while 93% of women said mental health is important to their wellness, only 35% rated their mental health as “very good” or “excellent.” Even fewer women in the 18 to 29 cohort — only 15% — said the same.

What gives? Researchers say the problem is too many demands on women, from money-related issues to caregiving responsibilities, to the intersection of the two.

Only 29% of women said they are very good or excellent at managing their finances, compared to 37% of men. “Financial health drives overall well-being — it really has an outsized impact on overall well-being, and people don’t necessarily think about that,” Gene Lanzoni, head of enterprise content told HR Dive.

“And we know financial challenges are particularly pronounced for women who are caregivers whether they’re caring for elderly relatives or whether they’re caring for small children,” Lanzoni added.

Here’s what HR needs to know about the state of women in the workplace, and what HR can do to improve half their workforce’s outcomes and business productivity.

The problems plaguing women

Of the respondents to Guardian’s survey, 38% of caregivers said their family is living paycheck to paycheck; forty-two percent of single mothers said the same.

“Money and finances, cost of living, mental health, paying off debt, saving for retirement and housing costs were all things that women particularly mentioned as being major stressors,” Lanzoni highlighted. 

Analysis showed that while men typically had $11,000 in emergency savings, women only had $6,500 in their emergency fund.

Researchers also suggested that the double strain of being a caregiver — both emotional and financial — led to worse physical health. They highlighted, for example, that women were more likely than men to skip medical care due to cost. 

“While both men and women face stress, uncertainty and even sometimes turmoil in their life, the impacts seem to be more profound for women,” Lanzoni said.

How HR can help women workers thrive

Outside of adjusting compensation and benefits packages for workers — especially in a year when HR’s hands may be tied, financially — small, free, workplace culture tweaks are an option for improving women’s health outcomes. 

“Normalizing conversations around the topics that are often shrouded in silence can help make them less intimidating,” Lanzoni said. “Women can [then] talk about things like fertility challenges, postpartum depression, menopause, elderly caregiving, [and] being a single working mom.”

Erasing the stigma around these conversations is a key starting point, Lanzoni said.

Another workplace culture tweak is championing flexibility. “There are so many great learnings that we have from the pandemic in terms of what employers were doing — and in some cases, forced to do,” Lanzoni said. 

Outside of Guardian’s report, research has continually supported this. A 2022 report from Care.com and Mother Honestly indicated that women benefit greatly from flexibility. Conversely, a Lean In executive told HR Dive that men benefit disproportionately from on-site work due to gendered norms.

Increasing total rewards, such as fertility or menopause benefits, could help combat women’s attrition from the workforce, Lanzoni said. 

Based on the report’s findings about women’s financial stressors, Lanzoni additionally suggested supplemental health insurance policies to aid with out-of-pocket costs, medical care-related lodging expenses, accidents and critical illness to retain women. Touching on the mental health aspect of the report, he also spotlighted employee assistance programs.

Mainly, the most concrete way to help women saddled with caregiving responsibilities would be to provide paid leave, Lanzoni suggested.

“Policies like paid leave become really important, because we have federal laws like the FMLA [but] that’s really for job protection,” Lanzoni said, adding that some states are trying to fill in that gap.

“So many employers, in states where there is no law for paid family and medical leave, are implementing policies to allow for parental bonding leave and family caregiving leave,” he said, adding that it would be a dealbreaker for certain groups, such as Gen Z, to not offer such a benefit. 

Overall, in offering best practices for HR to address the problems facing women workers, Lanzoni expressed concern around the downward data trend for women’s well-being. “That's something I’m sure we’d all like to see reverse,” he said.

Sponsored content

By HealthEquity

How a technology company increased Health Savings Account (HSA) adoption and enhanced employee healthcare outcomes at an affordable cost for all—including the company itself. 

Challenge: Capture lost savings through increased enrollment 

This organization understood the potential of HSA-compatible plans paired with HSAs to provide effective, affordable healthcare and help establish a financial safety net for their employees. However, getting people to enroll proved challenging — a problem many employers face. 

Since its low enrollment rates were costing both the company and its employees potential savings, they initiated changes with a goal to increase HSA plan enrollment by 67%. 

Solution: Improved incentives and education 

Partnering with HealthEquity, they first updated their HSA benefit. To drive adoption and help employees build savings, the benefits team introduced several changes including: 

• Providing a market-competitive seed contribution. 

• Reducing HSA plan premiums by $25 per paycheck. 

• Auto funding $25 employee HSA contributions per paycheck. 

From there, they expanded their plan communication outside of open enrollment. Benefits leaders worked with HealthEquity to provide year-round education to employees on the value of its HSA plan and its ability to deliver affordable healthcare. With home mailers and custom video content, employees learned savvy tips and tricks on how to best use their HSA.  

Plan changes¹ 

Market-competitive seed contribution 

-$25 Premium per paycheck for HSA plans 

+$25 Added per paycheck to employees' HSA in addition to seed contribution

Success: 2X HSA enrollment and improved health and financial wellbeing 

Not only did they exceed their original enrollment goal, but an impressive 95% of members made contributions to their HSAs, surpassing the industry average of 64%.5 The size of individual and family employee contributions also grew substantially.  

Most importantly, the organization has seen its employees’ health and financial wellness improve. 

The company says their HSA members are just as or more likely to participate in preventive care, including for diabetes, mental health, and emergency treatment compared to those with traditional health plans. They also use telehealth and generic prescription drugs more often, which saves them time and money. 

What’s more, the HSA-compatible plan allowed the company to achieve a significant 11% in savings compared to PPO plan holders. 

As for the benefits team, they plan to reinvest company savings in their health and wellness programs. And their HSA members are saving more — showing better financial preparedness for now and for the future. 

Results

104% Increase in HSA enrollment² 

95% Of HSA members contributing³ 

+29% Individual contribution amount 

+64% Family contribution amount 

11% Less expensive than PPO plan⁴ 

---

1. Example for illustrative purposes. Actual amount my vary based on final employee selection and number of pay period. 

2. Data from client, as of May 2023. 

3. Compares contribution increases from 2020 to 2023. 

4. Employer savings realized through premiums and risk reduction. 

5. Devenir 2023 year-end report. 

 

A large majority of U.S. adults in a May survey by Bankrate, 77%, said they aren’t financially secure, signaling a steady increase going back to 2023 and spelling potential complications for employers’ pay strategies.

Additionally, more than one-quarter of the 2,260 respondents said they’d need to earn $150,000 or more per year to feel financially secure and comfortable. That’s nearly double the average full-time salary in the U.S. for 2023, which stood at $81,515 according to data from the U.S. Bureau of Labor Statistics cited by Bankrate. 

The company said that inflation has affected purchasing power, citing consumer price index data from BLS that showed a $100,000 salary in January 2020 had the same buying power as $124,353 in April of this year.

“Getting rich may have once been what many Americans fantasized about, but now, simply living comfortably feels like the new aspiration, as economic challenges make financial stability a rare luxury,” Sarah Foster, Bankrate’s U.S. economy reporter, said in the firm’s analysis.

Bankrate’s survey found a fair amount of pessimism on the part of respondents about their financial futures, too. Nearly one-third said they were not financially secure and likely never would be, which represented an increase from prior years. Only 29% said their version of the “American Dream” seemed likely for them based on today’s economy.

By generation, Generation X workers were most likely to say they aren’t financially secure, followed by Generation Z, millennials and baby boomers. Thirty-five percent of women said they aren’t financially secure and never would be, compared to 29% of men. The percentage of women who said they were secure fell more quickly going back to 2023 compared to the share of men who said the same.

“Though many Americans hold onto the idea of returning to a 1950s-era ‘Golden’ America age, the days when a single, non-college educated breadwinner could sustain an entire family seem like they may be confined forever to the past,” Foster said.

Overall, 3 in 5 U.S. workers say they live paycheck to paycheck, according to a 2024 PNC Bank survey, and nearly a third said they would like early access to their pay. The firm’s survey of employers, meanwhile, found that 78% said their workers were financially stressed.

Benefit plan participants likewise have reported mixed feelings on financial security, according to a Bank of America report on client benefit programs in the second quarter of last year. BofA said that a gender gap persists when it comes to feelings of financial wellness; men in the report reported higher average financial security scores than women.

Base pay is only part of the talent attraction equation, however. Employers also rate access to benefits, work-life balance, training, equity and job security as being among their most desirable components in a job offer, according to a 2024 Randstad report. Compensation remained the most desired trait in the same report, though equity and financial security have moved to the “forefront” of employees’ priorities, a Randstad executive said in a press release.

More than 3 in 4 employers said they believe their workers are prepared for retirement, yet less than half of workers think so, according to PNC Bank’s third annual Financial Wellness in the Workplace Report, released Aug. 27.

Workers had varying levels of confidence in their ability to meet their retirement goals by generations, the report found. While 56% of Generation Z employees said they are "somewhat" or "very confident," 50% of millennials and boomers and 43% of Generation X said the same. 

Of the more than 500 U.S. employers surveyed, 78% said workers’ financial stress has a negative effect on operations, mirroring last year’s findings.

More than half of workers said their financial health negatively affects their workplace productivity, according to an August report from The Hartford. 

Meanwhile, two-thirds of workers who participated in a recent multigenerational survey published by the Transamerica Institute said they didn’t expect to have enough money saved to meet their retirement needs.

Part of preparing workers for retirement is ensuring they understand both what retirement actually looks like and the reality of their personal financial situation, an official at the National Institute on Retirement Security previously told HR Dive.

PNC found there a minor uptick in the percentage of employees who had access to a financial planning benefit. In 2025, 30% did, up from 28% the year before. 

Despite their trepidation about retirement savings, workers reported a slight improvement in the amount of stress they feel about their finances, PNC found. Sixty-eight percent of employees said they are "somewhat" or "very" stressed about their finances, compared to 70% in 2024 and 71% in 2023. 

Employers, too, said they thought workers’ financial stress levels were down. Sixty-nine percent of companies said they believed workers faced financial stress in 2025, an improvement from 78% in 2024 and 71% in 2023, the report found. 

Overall, workers said they were more in control of their finances this year (62%) compared to 2024 (56%), per PNC.

Nearly three-quarters of U.S. workers are stressed about their finances, and 56% say their financial health is negatively affecting their workplace productivity, according to an Aug. 5 report from The Hartford.

As workers turn to their employers for support, benefits programs can help employees protect their finances, the report found. However, benefits aren’t always used, employers said.

“As financial concerns continue to weigh on U.S. workers, it’s clear that workplace benefits are more than just a perk — they’re a meaningful source of financial support and well-being,” Mike Fish, head of employee benefits at The Hartford, said in a press release.

“Employers can help the workforce navigate through uncertainty by ensuring they have access to benefits and the education needed to fully understand and utilize them,” Fish said. “Employers and insurers have an opportunity to help their workers take control of their financial future with confidence.”

In a survey of 1,000 workers and 701 HR pros who manage benefits programs, 80% of employers and 62% of employees said benefits play an essential role in financial security. At the same time, 75% of employers said the benefits they offer often go underutilized. 

To support workers, 34% of employers said they added benefits in 2025, and 53% intend to in 2026. 

Healthcare coverage, retirement and leave benefits continue to top the list of employer-provided benefit priorities for 2025, according to a survey by the Society for Human Resource Management.

In The Hartford survey, 82% of workers said benefits are a key consideration when searching for a new job, and 58% said they would consider switching jobs for more comprehensive benefits.

Although technology and artificial intelligence-related tools can aid the benefits experience, about half of workers said they still prefer working with someone when requesting a leave of absence, learning about benefits and selecting benefits during open enrollment.

As for salary budgets, most U.S. employers expect to maintain their same level 2026, with increases remaining flat at 3.5%, according to a WTW report. Companies also said they’re aiming to support workers by enhancing health and wellness benefits, improving the employee experience and increasing training opportunities.

Nearly 3 in 4 employees said they would be more likely to stay with their employer if it offered benefits tailored to their personal needs, but what they say they value differs in notable ways from what employers think they do, according to HUB International’s 2025 U.S. Workforce Vitality Gap Index.

For example, employers are missing the mark on flexibility and work-life balance, the insurance broker and financial services firm’s report found. In a survey of 1,500 U.S.-based full-time employees, 41% ranked work-life balance and flexibility higher than any other benefit, including salary. Yet only 22% of the 150 HR benefits and finance and operations decision-makers who participated in a separate survey ranked them as workers’ top priority.

Decision-makers correctly identified financial wellness as a top employee concern affecting productivity, but they may be underestimating its impact. With student debt being the likely culprit, 52% of employees aged 35-44 and 51% of those aged 18-24, reported that financial concerns affected their productivity, the index said.

While companies pull “every lever to compete for talent,” making benefit decisions based on an inaccurate view of what their workforce values has a negative impact on retention, productivity and culture, Linda Keller, HUB’s chief operations officer of employee benefits, cautioned in a press release.

Healthcare benefits is one area that needs better alignment, the surveys indicated.

For good reason, healthcare benefits make up a core part of total rewards packages: 41% of workers surveyed said concerns about health affect absenteeism and employee presence at work. But like with employee financial concerns, employers underestimate its impact, especially on younger employees, the report noted.

HUB’s research found that only 20% of employers believe health concerns are a main factor affecting productivity, yet 45% of employees aged 24-35, and 42% of those aged 18-24, reported that it does play a role.

As student debt continues to be a persistent stressor, with employees ranking retirement planning (46%) and personal wealth planning (44%) as their most meaningful financial wellness tool, according to HUB’s findings, some companies are beginning to meet the challenge.

In its 2025 Benefits and Compensation Trends report, published earlier this year, Goldman Sachs Ayco noted that more employers are letting workers convert unused PTO into cash, student loans or 401(k) contributions, although they limit how many hours employees can convert annually.

However, employers that do offer programs directed at addressing worker stress over finances may also have to help employees understand how to use the benefits, a recent report from The Hartford recommends. Three-quarters of HR benefits managers the financial services and insurance company surveyed said the financial benefits they offer often go underutilized.

The HUB report does have some positive news: Employers are on the same wavelength as their workers when it comes to paid vacation and sick leave. According to the surveys, 94% of employers offer the benefit, while 97% of employees said they use it, and 91% said they would use it if offered. 

Only 43% of workers surveyed say they know how to enroll in benefits through their employers, according to the results of surveys by New York Life Group Benefit Solutions on employees’ benefits preferences. 

At the same time, slightly more than a third of employees said they feel extremely knowledgeable about which benefits they need. Similar percentages of workers (32% each) said they’re extremely knowledgeable about what each benefit offers and said they have an understanding of individual benefit costs. 

“Open enrollment is just the starting point,” Orla Nixon, head of claim operations at New York Life Group Benefit Solutions, said in a statement. “When employers prioritize closing the knowledge gap and creating a benefits experience that fits their employees’ unique needs throughout the year, they’re fostering a culture of wellbeing that prepares people for the moments that matter most.”

Largely, the benefits employees said they were most interested in remained unchanged year over year, which included: employer match on a 401(k) or retirement savings plan; supplemental health insurance; flexible work arrangements; and mental health resources. New among top benefits in this year’s survey was a desire for “add on” life and disability insurance, the results showed, replacing long-term care insurance.

Meanwhile, a desire for financial education support climbed from 22% to 28% of those surveyed for the New York Life Group Benefit Solutions report.

Employers may be picking up on this need, according to an August PNC report on workplace financial wellness. PNC found there was a slight uptick in the percentage of employees who had access to a financial planning benefit; in 2025, 30% did, up from 28% the year before. 

Benefits education may be increasingly necessary, reports show. 

A September report by The Standard, a provider of financial protection products, for example, found that 66% of women said they’re knowledgeable about their benefits, compared to 74% of men. For insurance specifically, 65% of women said they felt confident about their understanding, while 74% of men said the same. 

That points to an opportunity for companies, The Standard’s report said, to tailor benefits education programs for women to empower them to make more informed choices.