Majority of US employees worried about meeting basic costs, WTW survey finds

Rhea-AI Summary

A recent WTW survey reveals that 88% of U.S. workers are struggling with basic living costs, leading to declining retirement confidence. The survey, involving 10,000 employees, shows 46% are worried about daily expenses, with major concerns including food, healthcare, housing, and transportation. The percentage of employees living paycheck to paycheck increased to 44% from 37% in 2020. Financial concerns are negatively impacting employees' overall wellbeing, and 59% report increased stress and missed medical appointments. Nearly half of older workers expect to work past age 70, and 79% aren't saving enough for retirement. There's a gap between the financial support employees want from employers and what is being provided, with only 23% of employers prioritizing financial wellbeing initiatives.

Positive

• WTW survey provides critical insights into employee financial wellbeing.
• Identifies a significant concern among employees about basic living costs.
• Highlights a growing trend of employees expecting to work past age 70.

Negative

• 88% of U.S. workers struggling to meet basic living costs.
• Increase in employees living paycheck to paycheck from 37% in 2020 to 44% this year.
• 59% of employees report financial concerns negatively impacting their wellbeing.
• 79% of workers not saving enough for retirement.
• Significant disconnect between employee needs and employer support for financial wellbeing.

With mounting financial woes, retirement confidence declines

NEW YORK, June 24, 2024 (GLOBE NEWSWIRE) -- A majority (88%) of U.S. workers are struggling to meet basic living costs, fueling a sharp decline in retirement confidence. This is according to a new survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. The survey of 10,000 U.S. employees also revealed a sharp disconnect between the financial wellbeing support employees want from their employer and what companies are delivering.

The 2024 Global Benefits Attitudes Survey found nearly half of employees (46%) are extremely worried about paying for basic living costs. Employees ranked food (73%), healthcare (72%), housing (69%) and transportation (66%) as their main cost concerns. The number of employees who report living paycheck to paycheck climbed from 37% in 2020 to 44% this year, while the number of employees who said they were worse off financially compared with a year ago more than doubled from 2019 (16%) to this year (33%).

Four in 10 employees (41%) are not on the right track with respect to their finances, and nearly a quarter (21%) expect their financial situation to worsen over the next year. Moreover, 59% of employees said money concerns are having a negative impact on their overall wellbeing, resulting in missed medical appointments, higher levels of stress and anxiety, and less likelihood of meeting with friends and family.

“High inflation combined with the aftermath of a once-in-a-generation pandemic is causing many employees to feel overwhelmed and discouraged about their financial situation, which is affecting overall wellbeing,” said Mark Smrecek, senior director, Retirement, WTW. “Employers should take action to improve financial wellbeing within their organizations by adequately educating employees on their resources to close financial gaps and connecting employees with relevant elements of their total rewards package.”

Growing financial problems and uncertainty with inflation are also affecting employees’ retirement confidence and savings. Nearly half (46%) of older workers (age 50 and higher) expect to work past age 70, a sharp rise from 36% two years ago and 30% prior to the pandemic. Additionally, eight in 10 workers (79%) admit they aren’t saving as much for retirement as they should be, and only half (52%) are on the right track to retirement.

Interestingly, the survey revealed a significant gap between the financial wellbeing support employees want from their employers and the priority employers are placing on financial wellbeing initiatives. Two in three employees (66%) ranked financial wellbeing as the area where they want the most support from their employers over the next three years. In fact, almost half (47%) of employees want employers to help grow their savings and wealth, followed by making the most out of benefits (35%) and providing access for emergency savings (33%). However, other WTW research found only one in four employers (23%) ranked financial wellbeing as a top priority for their wellbeing program over the next three years.

“Employer retirement programs, and specifically defined contribution plans such as 401(k)s, remain the primary path for employees to save for retirement,” said Beth Ashmore, managing director, Retirement, WTW. “With challenges meeting their day-to-day expenses while still planning for retirement, employees are looking for help from their employer to build a retirement nest egg, but they also report needing flexibility for emergencies and having a desire to maximize their benefits.

“Yet, there is a clear disconnect in priorities between employers and employees,” continued Ashmore. “Employers have an opportunity to align their focus with employee value, cost pressures and talent objectives to address how their benefit programs, particularly retirement and financial wellbeing initiatives can help employees juggle their finances today while being on track for retirement.”

About the study

The 2024 Global Benefits Attitudes Survey was conducted from January to March 2024. Respondents include 10,000 U.S. employees working at medium and large private sector employers, representing a broad range of industries.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media contacts

Ed Emerman: +1 609 240 2766
eemerman@eaglepr.com

Ileana Feoli: +1 212 309 5504
ileana.feoli@wtwco.com

FAQ

What percentage of US workers are struggling to meet basic living costs according to WTW?

According to WTW, 88% of U.S. workers are struggling to meet basic living costs.

How many employees reported living paycheck to paycheck in the WTW survey?

The WTW survey found that 44% of employees reported living paycheck to paycheck.

What are the main cost concerns for employees as per the WTW survey?

Employees are mainly concerned about costs related to food (73%), healthcare (72%), housing (69%), and transportation (66%).

How has the confidence in retirement savings changed according to the WTW survey?

The WTW survey indicates a sharp decline in retirement confidence, with nearly half of older workers expecting to work past age 70.

What disconnect did the WTW survey reveal between employees and employers?

The WTW survey revealed a significant disconnect between the financial wellbeing support employees want and what employers are providing, with only 23% of employers ranking it as a top priority.