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!