Majority of US employees worried about meeting basic costs, WTW survey finds
24 Juin 2024 - 3:49PM
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 2766eemerman@eaglepr.com
Ileana Feoli: +1 212 309 5504ileana.feoli@wtwco.com
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