Despite efforts by employers to boost wellbeing, financial wellness remains low for American workers.
The annual Mind, Body, and Wallet report by the Guardian Life Insurance Company of America, found that wellbeing around retirement planning and personal finance continues to fall short among employees, with 32% describing their financial health as “good” or “excellent,” a sharp decrease from 44% in 2022 but still slightly higher from last year.
Longevity concerns in retirement was a leading stressor for workers—the survey found that 48% are worried about not having a guaranteed source of income in retirement. Half are sure on the number they’ll need to live comfortably in retirement, and only 36% believe they are “very good” at managing finances.
While some worry about affording a restful retirement, others reported concerns over competing priorities. Respondents cited worries over emergency savings (49%), being financially prepared in case a member of their family were to lose work due to a disability of serious illness (44%) and paying off or reducing household debt (42%).
This was especially so for Gen Xers, who for the first time in Guardian’s survey, reported worse financial wellbeing than Gen Z. Across the Sandwich Generation, around four in 10 reported low mental (43%), financial (41%), and physical (31%) health. This could likely stem from the fact that Gen Xers have largely grown into the caregiving role over the past years, and now juggle caring for both children and elderly or sick parents or family members.
Guardian underscores the significance of company-provided wellbeing resources and employer support. The report notes that 35% of caregivers who receive support from their employer over their caregiving responsibilities are likelier to rate their emotional health as “very good” or “excellent,” compared to 22% of those whose employers do not support their needs.
“The study re-affirmed the outsized impact financial health has on overall well-being, with particular influence on mental and physical wellness,” said Andrew McMahon, chief executive officer and president of Guardian. “While we were encouraged to see a small year-over-year increase, sustainable improvement to well-being will require a continued focus on education, empowerment, and solutions that meet people where they are.”
Likewise, those with a retirement account often reported higher financial, mental, and physical health.
Other key benefits employers should adopt include providing parents with access to benefits that support the different stages of raising children or caring for loved ones, like paid leave policies, mental health benefits, and supplemental health benefits, among other features.
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.
