Trevor Duggins, Author at Best Money Moves

The Truth About Employee Financial Wellness in 2025

by Trevor Duggins | May 21, 2025 | For Employers

Ongoing economic factors are putting a heavy strain on American financial stability. Recent reports paint a concerning picture of employee financial wellness, creating challenges in the workplace that may affect productivity, retention and overall satisfaction.

According to Mercer’s Financial wellbeing Landscape report, 43% of employers say employee financial wellness is a point of concern, up 14 points since 2022. With employers and employees increasingly keyed into this issue, now is the time to turn your attention to employee financial well-being.

Here are a few key highlights about the state of employee financial wellness in 2025. (Plus, what you can do to help your team in tough times.)

The current state of employee financial wellness

Despite their best efforts, many workers struggle to stay afloat financially. Those with one salary often look to side hustles or gig work to supplement their income, but lack the necessary savings to feel secure.

Based on the Mercer report, half of Americans have saved less than what they needed for financial security. This widespread lack of savings across all demographics threatens workers’ retirement hopes. In addition, 27% of adults report having no emergency savings whatsoever, leaving them vulnerable to unpredictable expenses.

As a result, 43% of adults in 2025 would need to borrow money to cover an unexpected $1,000 expense, according to May 2024 polling. For these employees, the margin for error is impossibly slim, leaving no room for life changing events.

The situation for employees is just as dire when it comes to retirement prospects. Among current retirees, 36% have faced unexpected spending needs during retirement, which shows how even careful planning can fall short. Additionally, 31% of retirees admit their spending is higher than they can comfortably afford.
55% of retirees cite fear of running out of money as a major reason they try not to spend down their assets. This approach to retirement spending reveals a lack of financial security, even among those who have successfully saved for retirement.

The role employers play in employee financial wellness

Financial wellness programs are some of the strongest means of defense for safeguarding your workforce from financial insecurity. These programs have evolved significantly, moving beyond basic retirement plans to offering comprehensive solutions addressing immediate and long-term financial challenges.

Without a solid benefits package, employees are more susceptible to economic forces outside of their control. This vulnerability doesn’t just affect workers’ personal lives — it directly impacts workplace performance, with financially stressed employees reporting higher levels of distraction, absenteeism, and decreased productivity.

Forward-thinking employers implement different approaches to support employee financial wellness:

On-demand pay options provide flexibility for employees to access earned wages before traditional pay periods, reducing reliance on high-interest loans or credit cards.
Financial education platforms provide personalized guidance to meet employees where they are in their financial journey. These platforms often include a plethora of resources and tools to develop a stronger sense of financial wellbeing.
Student loan assistance programs acknowledge the debt burden affecting productivity and long-term financial planning for many employees.
Dedicated emergency savings accounts with employer matching contributions, helping build financial resilience against unexpected expenses. Employers are increasingly working with banks, credit unions and third-party vendors to encourage employees to save for emergencies.
Holistic financial planning services that integrate retirement planning with day-to-day financial management, healthcare planning and estate planning.

Looking to the rest of the year, employers seeing the greatest returns on investment are those treating financial wellness as a fundamental part of their benefits strategy. Organizations that acknowledge the connection between financial stress and workplace performance are developing more sophisticated approaches to supporting their workforce.

The most successful programs recognize that financial wellness isn’t one-size-fits-all. Personalization and flexibility have become key, with benefits packages that can be tailored to individual circumstances and needs across diverse workforce demographics.

By addressing both immediate financial pressures and long-term security, employers can create an environment where workers can focus on their jobs without the distraction of financial stress, benefiting both employees and the companies they work for.

Looking for a financial wellness solution to support your employees? Try Best Money Moves!

Best Money Moves is an AI-driven, mobile-first financial wellness solution. BMM is designed to help employees with varying experience dial down their financial stresses. Best Money Moves offers comprehensive support toward any money-related goal.
Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness. To learn more, contact us at customersupport@bestmoneymoves.com and we’ll reach out to you to schedule a call!

Financial Wellness Is The Best Answer To Wage Stagnation

by Trevor Duggins | May 14, 2025 | For Employers

For millions of American workers, the income from one job is simply not enough to cover basic living expenses anymore. Despite an increase in prices and growing inflation, wages have remained unchanged for many Americans. According to ResumeNow’s Wage Reality Report, one-third of workers say their salary hasn’t kept pace with inflation, and it’s taking a major toll on financial health, mental health and productivity.

Because compensation is failing to keep pace with rising costs, companies are pivoting to financial wellness programs to provide solutions both employers and workers desperately need.

Learn why Financial Wellness may be the best answer to this growing issue.

Who Suffers From Wage Stagnation?

Wage stagnation happens when workers’ pay increases at a slower rate than inflation, reducing their ability to afford common goods and services. Wage stagnation has become increasingly common across the United States, with 55% of workers reporting their salaries are lower than they should be.

The consequences of wage stagnation go far beyond tight household budgets and savings accounts. According to a survey from Zety, more than one in three workers feel hopeless, anxious or frustrated about their chances of meeting life goals on their current salary. This financial distress directly impacts workplace performance, with 36% of employees reporting feeling less motivated to exceed expectations at work.

Even more concerning for employers, more than one in four workers are actively seeking new job opportunities for higher salaries. Meanwhile, 20% admit they’re more focused on increasing their income than improving their job performance.

The Hidden Cost of Financial Stress

The impact of wage stagnation directly affects a company’s bottom line. Financial stress costs employers an estimated $200 billion annually through decreased productivity, increased absenteeism and higher turnover rates.

This stress affects employees of all levels. According to Forbes, 76% of C-suite executives and HR leaders reported experiencing financial stress themselves, while a staggering 92% of employees acknowledged being stressed about their finances.

While financial stress affects employees in the short term, long term financial milestones are also stunted. According to HR Dive, 40% of employees say they cannot save for retirement, while 37% report being unable to afford to buy a home.

In response to these challenges, organizations are using benefits packages to provide financial wellness initiatives. These initiatives address immediate needs while building long-term financial resilience among their workforce.

Financial wellness programs typically include:

Educational resources that help employees better manage their existing finances
Retirement planning support that helps employees prepare for the future regardless of current wage constraints
Comprehensive budgeting tools that help track and manage expenses
Personalized AI insights for specific employee needs

Why Financial Wellness Is the Key to Addressing Wage Stagnation

While wage stagnation presents significant challenges for both employees and employers, financial wellness programs offer a practical path forward even when salary increases aren’t feasible. These initiatives address the core issues behind financial stress while providing employees with tools to support existing compensation and build toward more secure futures.

By investing in financial wellness, companies can significantly reduce the productivity drain caused by financial stress while demonstrating a commitment to employee wellbeing. This approach creates a more engaged, productive workforce and builds loyalty during a period when more than a quarter of financially stressed workers are contemplating leaving for better opportunities elsewhere.

The data is clear: when companies can’t immediately solve wage stagnation through compensation increases, comprehensive financial wellness programs offer the most effective alternative for empowering employees and creating financially healthy organizations.

The Truth About the Sandwich Generation: 3 Unique Insights

by Trevor Duggins | May 7, 2025 | For Employers

Employees of different generations have different financial struggles. Recent grads may struggle with student debt, while older individuals may focus on building a solid retirement plan. But what about employees in between?

This section of the workforce is aptly labelled “the sandwich generation,” and represents working adults caught in a unique and challenging life stage. Usually between ages 40 and 60, these employees both care for aging parents while supporting their own children. Members of the sandwich generation are responsible for overwhelming responsibilities that may impact their financial well-being.

This phenomenon has been around since the 1980s, but has only grown since then. Parents are deciding to have their children at later stages in their lives, while lifespans for older individuals are increasing. In addition, according to the census, nearly 1 in 3 adults aged 18 to 34 lives with their parents, which adds to their caregiving burden. This is an issue that is likely affecting your workforce in unforeseen ways.

Here are three insights you should know about the sandwich generation.

The burden on employees in the sandwich generation is significant

The financial and emotional challenges facing the sandwich generation are far-reaching. According to a survey conducted by Wakefield Research, a staggering 72% of caregivers report having to make difficult financial sacrifices that impact their quality of life.

These sacrifices are not trivial choices but critical decisions about survival and support. An AARP survey found that American caregivers provide nearly $600 billion in unpaid care annually, not to mention the additional time investment. Individually, this rounds out to $61,000 in caregiving expenses annually for the average family. These costs include food, medical supplies, home modifications and medicine.

Many are forced to cut back on essential expenses, depleting their carefully saved retirement and personal savings just to meet the immediate needs of their families. Some even reduce medical care expenses, putting their own health at risk to support their loved ones.

As a result, half of all caregivers experience increased emotional stress, with the constant pressure of supporting two generations creating a taxing state of anxiety, overwhelm and burnout. Physical stress impacts 37% of caregivers, resulting in health issues directly related to the demanding nature of their responsibilities. The persistent nature of this stress is evident in a startling statistic: 40% of caregivers rarely or never feel truly relaxed. The mental health implications are severe, with 56% struggling to maintain their psychological well-being and 41% reporting feelings of profound loneliness.

Caregiving often comes at the cost of career opportunities

However, the professional consequences of being in the sandwich generation extend far beyond personal stress. More than half (53%) of working caregivers have made significant career sacrifices, often stepping back from professional opportunities or reducing their work commitments. Retirement planning has become a luxury many cannot afford, with 42% delaying their retirement plans to meet immediate family needs.

Their commitment is further illustrated by the fact that 40% would willingly take a pay cut to gain more flexibility for caregiving responsibilities. In fact, 15% of working caregivers are considering leaving their jobs entirely in the next six months to focus exclusively on caregiving.

Employers have a responsibility to provide support to those in the sandwich generation

For organizations, supporting employees in the sandwich generation is not just an act of compassion — it’s a critical business strategy to improve retention and workforce well-being. Employees experiencing such intense personal pressures are at high risk of reduced productivity, increased absenteeism, higher stress and burnout.

To support your sandwich generation employees, consider these targeted benefits.

Flexible work arrangements: Traditional work models can no longer accommodate the complex lives of sandwich generation employees. It is imperative to offer remote work options that allow employees to manage caregiving responsibilities, providing flexible scheduling that recognizes their multiple commitments.

Financial wellness programs: Comprehensive financial support goes beyond traditional benefits. Offering financial planning educational resources helps employees navigate their complex financial landscapes. Dedicated caregiver support resources and emergency savings programs can provide a critical safety net for those managing multi-generational responsibilities. Budgeting tools and catered financial content also can help workers plan for the future with the best information.

Mental health support: Recognizing the profound emotional toll of caregiving, employers should provide comprehensive mental health coverage. This includes counseling services specifically tailored to caregivers, stress management workshops that provide coping strategies and support groups that create communities.

Comprehensive insurance options: Insurance benefits must evolve to meet the complex needs of the sandwich generation. This includes extended family care insurance, flexible spending accounts for dependent care, and health insurance options that cover multi-generational care needs.

Looking for a fintech solution to support your employees? Try Best Money Moves!

Our dedicated resources, partner offerings and 1000+ article library make Best Money Moves a leading benefit in bettering employee financial wellness. To learn more, contact us at customersupport@bestmoneymoves.com and we’ll reach out to you to schedule a call!

Financial Literacy Month: 4 Urgent Facts You Need to See

by Trevor Duggins | Mar 31, 2025 | For Employers

April is Financial Literacy Month, hosted by the National Endowment for Financial Education and The Jump$tart Coalition for Personal Financial Literacy.

Financial health is a pillar of employee well-being. Yet, many Americans remain financially undereducated. In a 28-question financial survey by the World Economic Forum, most respondents could only answer about 50% of the questions.

Low financial literacy is linked to higher levels of stress and anxiety. It’s also connected to employee stress, which has a major effect on mental health and performance at work. Employees who don’t receive help from their employers through financial wellness programs are more susceptible to stress, burnout and an overall lower quality of life.

Here are 4 urgent reasons to make Financial Literacy a priority in your workplace.

1. Nearly 3 in 4 workers say they can only meet their most basic living expenses

According to a survey from Resume Now, 73% of respondents claimed they couldn’t afford anything beyond their basic living expenses. Living expenses, which include rent, utilities and groceries have all gradually increased (adjusted for inflation) while wages have generally stayed the same. This reflects the volatility of the current economic climate but also highlights potential gaps in financial knowledge.

Better financial literacy includes effective budgeting skills and finding ways to optimize their current expenses. In 2023, the United States Census Bureau found that over 21 million renter households spent more than the recommended 30% of their income on housing costs. In the Resume Now survey, 55% of respondents described housing as their main source of financial stress. Individuals with stronger financial education may better understand the long-term implications of housing choices, including how much they can spend with their income.

Most employees who live paycheck to paycheck often have little saved for financial emergencies. When workers focus on their next rent payment, or credit card debt, their productivity and engagement at work suffer.

2. One in four workers has delayed saving for retirement due to inflation

A lack of financial literacy may result in misinformed decisions that can have lasting effects on your workforce. According to research from TIAA, 25% of employees in a study decreased the amount they saved for retirement due to inflation. Nearly half of these same employees stopped saving completely. The ability to save for retirement is a major boon for employees, but those who cannot suffer major consequences. Without financial literacy, employees will be more stressed now and less prepared for retirement when the time comes.

This continues to be a struggle for nearly half of employees. U.S. adults correctly answered only 48% of the questions on average, on the P-Fin Index (a survey that rates financial literacy). The Index saw particularly low scores among younger generations and certain racial/ethnic groups.

3. 39% of Gen Z lack financial literacy skills and see debt as a normal part of their financial life

Generation Z (individuals born between 1997 and 2012) are disproportionately affected by a lack of financial education. According to WalletHub, more than 25% of Gen Zers say they are not confident in their financial knowledge and skills. Less than 20% of Gen Z and Gen Xers say they can manage their debt. This deficit is made worse by the fact that Gen Z is the age group most impacted by inflation.

Gen Z are the most financially stressed generation. This stress is due to several key factors: economic uncertainty, increased cost of living and rising debt levels. There are also major societal expectations amplified by social media. Young employees see other successful individuals and may feel behind in life when comparing themselves to others. 72% claim that these pressures contribute to their financial trauma.

Generational differences also play a part in the buildup of financial stress. According to the survey, only 35% of Gen Z respondents discuss money during times of stress. These combined pressures create unique challenges for a generation entering adulthood during periods of
economic instability and increased cost of living.

4. Employees who are more stressed over their money management have a higher rate of burnout and lower job satisfaction

Burnout is a major issue affecting employees, especially those with financial stress. A survey from the University of Georgia found that employees dealing with money management issues were also more likely to have increased issues at work.

The survey included over 200 full-time US employees who dealt with burnout symptoms (depersonalization, emotional exhaustion, and reduced sense of accomplishment) due to their financial situation.

The research suggests that addressing financial concerns could help reduce burnout, with employers potentially benefiting from offering financial wellness services to employees.
Employees dealing with money worries might spend time at work dealing with personal financial issues, show higher absenteeism, and experience more health problems. By addressing financial stress through educational programs, employers can directly impact burnout rates and improve job satisfaction, leading to a happier and healthier workforce.

5. About half of workers believe employers have a responsibility to help them maintain and improve their financial literacy and wellness

Employers increasingly offer financial wellness programs to help workers make better financial decisions and manage workplace benefits effectively. Important financial decisions are constantly being made at work, yet many employees feel unprepared to navigate complex benefits options while dealing with personal financial stress. These programs vary widely but typically include educational resources, workshops and budgeting tools. By 2026, nearly half of employers expect to offer comprehensive financial wellness services, according to Transamerica’s research.

The key to solving this stress is a comprehensive financial wellness program. Financial wellness programs can help start the conversation while providing practical strategies for debt management and building positive financial habits early in their careers.

This expectation from employees represents both a challenge and an opportunity for employers. Workers increasingly see financial wellness benefits as an essential part of a comprehensive benefits package. Companies that respond to this expectation can stand out by demonstrating a commitment to employee wellbeing.

Looking for a comprehensive financial wellness solution? Consider Best Money Moves.

Best Money Moves is an AI-driven, mobile-first financial wellness solution designed to help employees with varying levels of financial knowledge dial down their most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal, ranging from debt management to purchasing a home. With 1:1 money coaching, budgeting tools and other resources, our AI-driven platform is designed to help bolster employee financial wellbeing.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

Sneak Peek: Free Financial Wellness Webinars With Best Money Moves

by Trevor Duggins | Mar 26, 2025 | For Employers

Best Money Moves is an AI-driven, mobile-first financial wellness solution designed to help employees dial down their most top-of-mind financial stress. Best Money moves users receive access to hundreds of articles, videos and educational tools to help them manage money.

We’re offering a special sneak-peek of one of our most-loved resources, our monthly webinars, hosted by Best Money Moves founder & CEO Ilyce Glink.

Enjoy a special sneak peek of the monthly webinar series, free to all users

Each month, our free webinars tackle common financial topics from budgeting, to credit card debt, retirement and more. We break down complex financial issues into basic fundamentals for the viewers.

Also, webinar attendees get their unique financial wellness questions answered during live Q&As at the end of each presentation. Past webinars are uploaded to our extensive user Learning Center to enable future viewing. Questions from this webinar include:

Could my partner’s poor credit score affect me once we’re married?
Why do I really need more than one credit card?
When is it time to file for bankruptcy?
Can activity in my checking and debit accounts impact my credit history?
Is a credit freeze a good idea? How can I set one up

Make an ongoing commitment to employee financial wellness: Sign up for Best Money Moves today

This month’s webinar tackles credit, specifically, 10 Credit Questions You’ve Been Too Afraid to Ask. In it, Ilyce discusses common credit misconceptions and pain points. All of this content and more is available on the Best Money Moves platform, along with amazing tools to help employees get a handle on their credit. Take a look at this 10-minute preview to get a glimpse of what your employees can access through Best Money Moves.

Schedule a call with a member of our team to learn more about Best Money Moves. Contact us and we’ll reach out to you soon.

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