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As many Americans struggle to withstand rising costs of living such as housing, groceries, electricity and other necessities, their financial stress is increasingly in the spotlight at work.
Employers’ discomfort with employees’ financial well-being reached a new high in 2025, according to a recent study by the Employee Benefits Research Institute. A recent study by the Employee Benefits Research Institute found that 48% rated their concerns a 9 or 10 on a scale of 1 to 10, compared to 43% in 2024 and just 39% in 2023. In 2019, the year before the coronavirus outbreak, that percentage was 22%.
“Starting in 2022, employers are shifting their top retirement concerns to day-to-day living costs, budgeting, and savings issues,” said Jake Spiegel, senior research fellow at the Employee Benefits Research Institute.
“Employees are feeling the pressure of above-trend inflation,” Spiegel said.
From paycheck to paycheck
Inflation has slowed to an annual rate of 2.7% since a peak of 9.1% in June 2022, but overall prices have increased by more than 25% since 2020, based on the Consumer Price Index.
As a result, most households are finding their finances strained due to increased spending. More than half of employees (57%) live paycheck to paycheck, according to a 2025 study of nearly 90,000 participants in Bank of America’s 401(k) retirement plans. Wage growth has generally outpaced inflation over the past two years, but this came after a period in 2021 and 2022 when incomes were below inflation.
Employers interested in helping employees manage stress to reduce absenteeism and employee dissatisfaction are striving to place greater emphasis on the financial well-being of their employees.
According to EBRI research, more than two-thirds (70%) of employers will have some sort of financial wellness initiative in place in 2025, up from 59% a year ago. The survey included responses from 406 benefits decision makers at companies with 500 or more employees that offer or are interested in offering financial wellness programs.
At the same time, only 43% of employers say their initiatives are having a “significant impact,” compared to 60% in 2024 and 73% in 2023.
He said employers may be taking cues from employees when evaluating the effectiveness of their programs.
“In our other research, we see evidence that employees tend to be less optimistic than their employers when it comes to assessing the effectiveness of benefits,” he said.
financial wellness design
The details of financial wellness programs vary from company to company. These can include benefits such as paycheck advances, short-term loans through third parties, and access to emergency funds through loans and hardship withdrawals through a dedicated savings account or its 401(k).
It may also include offering seminars or webinars that focus on specific issues such as budgeting, investing, or saving for retirement.
Additionally, 68% say their employees have access to a financial advisor and 46% provide access to a financial coach. In some cases, companies may subsidize all or part of the cost of employees meeting one-on-one with experts.
“Financial wellness through one-on-one sessions is a strategic way to increase access to professionals who specialize in providing financial guidance,” said Uchechi Kalu, a certified financial planner and founder of Greenlight Financial Planning in Los Angeles.
Kalu works with a Chicago nonprofit whose employees can meet with her twice a year via video call to discuss financial issues they’re facing. Carew said workers pay $118 per session, with their employers subsidizing half the cost. She said if an employer helps pay for these types of sessions, it could make a difference in whether a worker takes advantage of the benefit.
She has provided guidance on a variety of financial issues, including budgeting, investing, home buying, and paying for international travel.
“One-on-one is when you can reach people at critical moments and help them move forward on their journey,” Cull said.
