Employers Push Financial Wellness. So, Why Do Workers Still Struggle?

Employers have spent years expanding their financial wellness offerings, from budgeting tools and financial coaching to retirement planning resources and legal benefits. Yet, financial insecurity remains one of the most persistent challenges employees face.

According to ARAG Legal’s 2026 Employee Financial Stability Study:

• 58% of surveyed workers said they experience moderate to extreme financial stress; and,
• 55% said financial stress affects them at work.

The findings suggest that while financial wellness programs have become more common, employee needs remain both widespread and complex.

For HR and benefits leaders, the research offers several important takeaways.

1. Financial Stress Has Become a Workforce Issue, Not Just a Personal One

Financial concerns don’t stop when employees log in for work.

The study found rising living costs (59%) and economic uncertainty (39%) continue to be major drivers of financial stress. With many workers living month-to-month to cover basic bills, they’re challenged to save for long-term goals (like home ownership or retirement) or build emergency funds. Only 30% of survey respondents said they could cover a $1,000 unexpected expense without borrowing or delaying other bills.

As financial pressure grows, its workplace impact becomes harder to ignore. Among employees whose finances affect their work:

• 61% report feeling mentally drained or distracted;
• 58% struggle to concentrate; and,
• Others report lower motivation and increased interest in finding higher-paying jobs.

The implication for employers? Financial stress has become a productivity, engagement and retention issue.

2. Employees’ Financial Needs Exist on a Spectrum and Vary with Time

ARAG’s findings suggest employees’ needs generally move across three financial wellness states:

• Financial recovery. Here, employees typically grapple with significant financial burdens, such as credit card debt, student loans or other financial setbacks. High interest rates, slow repayment progress and debt triggered by health events frequently amplify this stress. Their priority is regaining stability through debt management, financial counseling, legal counsel and informed planning.
• Financial preparedness. Employees focus on achieving financial goals (like a comfortable retirement or funding children’s education) as well as building resilience. That often means being better prepared for the unexpected. In fact, 74% of respondents experienced a major life event in the past two years — and without sufficient savings, many continue to feel the financial impact long after. Employees in this stage need the tools and guidance to strengthen long-term financial security (e.g., savings incentives, estate planning, investment counseling).
• Financial literacy. Many employees lack the foundational financial knowledge needed to make confident decisions about budgeting, saving, investing and planning. Only 45% of employees said they are highly confident in their understanding of personal finance concepts. Educational resources, digital learning platforms, financial coaching and decision-support tools can help them better understand their options and make informed choices.

The findings suggest employers may need to think more broadly about the resources employees require to improve financial stability. Recognize that financial challenges often intersect with legal issues, family responsibilities and major life decisions. Employees navigating a divorce, caring for aging parents, settling an estate or managing significant debt frequently need both financial counsel and legal support.

Therefore, offer a portfolio of benefits and tools that flex to meet employees where they are.

3. Access Alone Won’t Drive Results

Even when resources are available, utilization remains a challenge.

Forty-eight percent of surveyed employees believe employers should offer benefits and resources that support their personal finances. However, 57% of those with access to employer-sponsored financial services have not yet used them.

The gap highlights a challenge many benefits leaders know well: Employees may not understand what’s available, when to use it or how it applies to their situation. Further, when it comes to finances — strikingly similar to mental health benefits — employees are generally concerned about confidentiality.

That’s why communication matters as much as the benefit itself. Employees need clear, ongoing education about available resources, how those resources can help with everyday financial decisions as well as crises, and assurances that using them is confidential.

Therefore, base your financial wellness program on access, and awareness, relevance and trust.

The Work Continues

The persistence of financial stress suggests financial wellness remains unfinished work for many employers. The solution isn’t necessarily more benefits — it’s making sure employees can access the right combination of financial education, coaching, legal support, planning resources and guidance at the moments they need them most.

As employees move through different financial life stages, organizations that meet those evolving needs may be better positioned to improve workforce well-being and performance.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Benefits
• Total Rewards
• Well-Being