As the cost of everyday living continues to rise in the United States, employers are paying closer attention to the financial pressure many workers face. Expenses like housing, groceries, utilities, and transportation remain high, and this strain is increasingly showing up in the workplace.

New research shows that employee financial well-being has become one of the top concerns for employers in 2025, signaling a major shift in how companies think about benefits and workforce stability.

Employer Concern Reaches a Record High in 2025

According to recent findings from the Employee Benefit Research Institute (EBRI), nearly half of employers are deeply worried about their employees’ financial health.

• 48% of employers rated their concern at 9 or 10 out of 10 in 2025
• This compares with 43% in 2024 and 39% in 2023
• Before the pandemic, in 2019, that figure was just 22%

This steady increase suggests that financial stress among workers is no longer seen as a personal issue alone, but one that affects productivity, morale, and retention.

Focus Shifts From Retirement to Everyday Expenses

In recent years, employers have adjusted their priorities. Instead of focusing mainly on long-term retirement planning, companies are now more concerned about workers’ ability to manage daily expenses.

Rising prices have played a major role. While inflation has slowed to 2.7% annually, prices are still more than 25% higher than in 2020, based on the Consumer Price Index. This means many households are still feeling stretched, even if inflation is no longer at its peak.

Many Employees Still Live Paycheck to Paycheck

The impact of higher costs is clear in household budgets:

• 57% of employees live paycheck to paycheck, according to a 2025 Bank of America survey
• The survey included nearly 90,000 participants in 401(k) retirement plans

Although wages have grown faster than inflation over the past two years, that growth followed a period in 2021 and 2022 when income failed to keep up with rising prices. For many workers, the gap has not fully closed.

Financial Stress Is a Workplace Issue

Employers are increasingly aware that financial stress can lead to absenteeism, lower engagement, and job dissatisfaction. As a result, more companies are investing in financial wellness programs.

In 2025:

• 70% of employers reported offering some type of financial wellness initiative
• This is up from 59% in 2024

The EBRI study surveyed 406 benefits decision-makers at companies with at least 500 employees.

However, there is a growing gap between effort and perceived results.

Are Financial Wellness Programs Working?

While more employers are offering support, fewer believe those programs are making a big difference:

• Only 43% say their programs have a “large impact”
• Down from 60% in 2024 and 73% in 2023

This may reflect employee feedback. Other surveys suggest workers often rate the effectiveness of benefits less positively than employers do. In other words, offering programs is not the same as meeting real financial needs.

What Financial Wellness Programs Look Like Today

Financial wellness programs vary widely by company, but commonly include:

Practical Financial Support

• Payroll advance options
• Short-term loans through third-party providers
• Emergency savings accounts
• 401(k) loans or hardship withdrawals

Education and Guidance

• Budgeting workshops and webinars
• Investing and retirement planning sessions
• Financial literacy resources

Access to Experts

• 68% of employers offer access to financial advisors
• 46% provide access to financial coaches
• Some employers fully or partially subsidize one-on-one sessions

These tools aim to help employees manage both immediate financial challenges and long-term goals.

Why This Trend Matters

The growing focus on employee financial wellness reflects a broader reality: financial stress does not stay at home. As long as living costs remain elevated, employers are likely to keep experimenting with ways to support workers and to measure more carefully what actually helps.

The challenge ahead is not just offering benefits, but designing programs that employees trust, use, and find meaningful.

Disclaimer

This article is for informational purposes only and does not constitute financial, legal, or investment advice. Data cited is based on publicly available research and surveys. Readers should consult qualified professionals for advice specific to their personal financial situation.