A new report finds American workers are recording some of the lowest wellbeing marks in recent years.
TELUS Health today released a special report on financial wellbeing as part of its TELUS Mental Health Index, finding that workers scored 65.9 on their financial wellbeing index in 2023, the lowest since the launch of the index in January 2021. Mental health scores also fell 1.4 points to 69.7.
TELUS points to high inflation figures, along with a lack of retirement planning among investors for the drop in numbers. The research adds that 63% of workers are unsure on the amount of savings they will need to retire. This group also had a mental health score 10 points below the national average (59.9) and a financial wellbeing score six points below the average (50.9).
Moreover, workers who reported concerns about never retiring had considerably lower mental health (53.7) and financial wellbeing (45.3) scores compared to their counterparts, found TELUS.
“The current economic landscape has workers concerned about their financial futures and looking for advice on how to navigate a path forward,” said Juggy Sihota, chief growth officer at TELUS Health.
According to the findings, workers’ top financial concern today is keeping up with inflation (26%), with 11% worried about covering their basic needs. Workers without emergency savings also reported a low mental health score of 52.4, compared to 76.0 for those with a rainy-day fund.
On the flip side, respondents with a clear understanding of their retirement savings goals were likelier to exhibit above-average financial and mental health scores, at 76.6 and 77.1, respectively.
TELUS’ findings demonstrate the impact of employer-sponsored plans, along with access to healthcare options. Seventy-eight percent of workers said it is important for their employer to offer a retirement plan, while 34% believe financial planning is a crucial aspect of a benefits package.
Respondents were also likely to prioritize benefits that provide coverage for parents and adult children. Workers under age 40 were two and a half times more likely to name caregiving assistances for parents as the most important benefit.
“Employers who grasp the undeniable connection between mental and financial wellbeing have a unique opportunity to offer all-encompassing and impactful support,” added Sihota. “By providing access to comprehensive benefits plans, tools and resources, employers empower their employees to forge a financially secure tomorrow for themselves and their loved ones.”
Additional findings from the report can be found here.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.