5 Financial Stress Statistics for 2021. These 5 financial stress statistics illuminate a growing problem in the American workforce. What can employers do to help their teams?
Almost a year after the World Health Organization declared Coronavirus/COVID-19 a public health emergency, workforces nationwide continue to feel the effects of the pandemic. But fears of getting sick aren’t the only thing keeping Americans up at night. Increasingly, studies show that financial stress is a major problem among most employees, and employers need to reevaluate the scope of the problem in order to find solutions that financially empower their teams.
Here are five fast facts about financial stress in 2021 that could be impacting your workforce:
On the whole, the American workforce is stressed out about money — often even more so than they’re stressed about the pandemic.
According to a 2021 Capital One CreditWise survey, 73% of Americans rank their finances as the most significant source of stress in their life. Given the state of public health, this statistic reveals the gravity of financial wellbeing in the lives of individual employees.
Gen Z and Millennial employees are feeling this crunch the most.
This same survey pointed out that the younger generation in the workforce are the most stressed about their finances. A remarkable 82% of Gen Z respondents and 81% of Millennial respondents noted that their finances are at least somewhat stressful. Although it’s difficult to say what exactly is causing this disparity, two factors may be that younger generations have significant student debt and a smaller accumulated savings.
The cost of medical care weighs heavily on employees.
Forty-one percent of Americans feel that the cost of medical care is the biggest financial stressor, according to the latest CFP Board and Heart + Mind Strategies survey. Other major concerns seemed differentiated by generation. Gen Z and younger Millennial respondents marked more concern about paying rent or mortgage than older Millennial and Gen X respondents, while the older generations were more concerned with saving for retirement than younger colleagues.
Most people are underprepared for financial emergencies.
According to PwC’s annual Employee Financial Wellness Survey, 38% of all employees have less than 1,000 dollars to deal with unexpected expenses. This number jumps to 62% among Gen Z respondents and drops to 34% among Gen X respondents.
Employees are shouldering this burden alone.
The CFP Board and Heart + Mind Strategies survey also noted that 3 out of 4 respondents did not seek the help of a financial planner. Those who did saw their stress levels drop.
Bringing Financial Wellness To the People Who Need it Most
One thing’s for sure: In one way or another, regardless of age, experience or industry, employees are struggling with financial stress. That’s why financial wellness platforms like Best Money Moves are key to improving the employee experience.
Insightful, comprehensive and easy-to-use. Best Money Moves offers consumer-focused financial education designed to help users of all experience levels learn more about their money. More than a simple budgeting tool, Best Money Moves helps your employee educate themselves about everything from investing in the stock market to co-signing loans to buying their first homes with access to a library of over 700 articles, videos and calculators. Plus, Best Money Moves connects employers with data they can use to help their workforces succeed by leveraging user analytics to create individualized employee content.
Employee information is always private but employers do have access to key analytics that show overall employee financial stress and stress levels over time. The Employer Dashboard also features information on program usage, debt and savings levels and more so employers can see just how valuable Best Money Moves is to their employees.
If you want to learn more about how Best Money Moves can bring financial wellness to your company, download our whitepapers.