Employee Financial Wellness Report
Payroll Integrations’ Employee Financial Wellness Report explores the growing importance of financial wellness from the perspective of both employers and employees.
Employees' Confidence in Workplace Financial Wellness Support Plummets From 74% to 35% in a Single Year
Payroll Integrations' third annual Employee Financial Wellness Report finds a widening disconnect between the support employers believe they provide and what employees say they are actually experiencing.
The financial wellness gap is getting harder to ignore
Employees' confidence in workplace financial wellness support has fallen by more than half in a single year. In 2025, 74% of employees said they felt their employer provided strong financial wellness support. In 2026, that figure dropped to just 35%.
Employers, however, see a very different picture, with 63% believing they are delivering strong support — a confidence most of their employees don't share.
That divide is emerging as higher everyday costs put greater pressure on household budgets and employees increasingly judge workplace benefits by whether those benefits materially improve their financial stability.
Employees and employers are seeing two very different realities when it comes to financial wellness.
Employee confidence in workplace financial wellness support fell by more than half YOY.
of employers believe they are delivering strong financial wellness support.
employees believe they will be able to retire comfortably.
The Financial Pressure of Tomorrow Is Hitting Employees Now
As higher everyday costs put more pressure on household budgets, employees are increasingly evaluating benefits based on how much they improve their financial stability. Employers are already seeing the impact, with 45% reporting turnover in the past year that they primarily attribute to employee dissatisfaction with pay or benefits.
Employees aren’t anticipating financial strain, they’re already experiencing it. Nearly half, 46%, were unable to cover an essential expense before a recent payday in the past year, including 24% who experienced it more than once.
The pressure extends into long-term savings too. Although 82% of employees contribute to a retirement plan, only 34% believe they will be able to retire comfortably.
The rising cost of living is now the top barrier to retirement confidence for 45% of employees, while concerns about Social Security (34%) and not saving enough each month (27%) follow closely behind.
45% of employers tie turnover to dissatisfaction with pay or benefits
Employers reporting turnover in the past year that they primarily attribute to employee dissatisfaction with pay or benefits.
Nearly half of employees struggled to cover an essential expense before payday
| Unable to cover an essential expense before payday | 46% |
| Experienced it more than once | 24% |
Retirement participation remains high, but confidence is low
| Employees who contribute to a retirement plan | 82% |
| Employees who believe they will retire comfortably | 34% |
Participation in retirement plans remains widespread, but contributing does not necessarily translate into confidence about long-term financial security.
Cost of living is the biggest barrier to retirement confidence
| Rising cost of living | 45% |
| Concerns about Social Security | 34% |
| Not saving enough each month | 27% |
The Youngest Employees in the Office Are Most Confident About Retirement
Gen Z reports the highest retirement confidence and is also the most likely generation to expect retirement before age 65.
Younger employees expect to retire sooner
Expected retirement age rises steadily across generations, from an average of 63.1 among Gen Z to 67.6 among Boomers.
retire before age 65
age 65.4
to retire
63.1
to retire
to retire
to retire
to retire
Workers are tapping retirement savings to cover costs today
Twenty-two percent of workers have withdrawn retirement funds, most often to cover day-to-day living costs, unexpected emergencies, high-interest debt or housing costs. Another 19% plan to withdraw retirement funds within the next year.
Employees carrying medical debt are withdrawing funds at the highest rate of any group: 31% have already withdrawn funds and 17% plan to in the next year. Employees caring for an aging family member are most likely to plan a withdrawal in the next year, at 23%.
Have employees withdrawn retirement funds, or do they plan to?
planning again
Why employees are tapping retirement savings
Day-to-day living costs and unexpected expenses lead the list, followed closely by high-interest debt and housing costs.
Financial pressure is closely tied to retirement withdrawals
Employees carrying medical debt report withdrawals most often, while employees caring for an aging family member stand out for planned withdrawals.
Employees Are Bringing Their Financial Stress to the Office
Financial strain is following employees into the workplace, affecting their mental health, productivity and decisions about whether to stay.
Financial pressure is becoming a workplace problem
38% of employees say financial stress has strongly affected their mental health at work, while 31% say it has strongly affected their focus or productivity.
The effects are also showing up in how people work and whether they stay. Employees most often report being distracted or less productive, taking on a second job and declining employer-offered benefits because of cost, while 63% have considered changing jobs because of financial concerns.
Financial stress is affecting employees’ mental health
In the past 12 months, to what extent has financial stress affected your mental health at work?
a bit
at all
Financial stress is making it harder to focus at work
In the past 12 months, to what extent has financial stress affected your focus or productivity at work?
a bit
at all
Financial stress is changing how employees work
Distraction and lower productivity are the most common effects, followed by taking on additional work and declining benefits because of cost.
Financial concerns are becoming a retention problem
Nearly two-thirds of employees considered changing jobs in the past year, with higher pay emerging as the strongest driver.
Have financial concerns caused you to consider changing jobs during the past 12 months?
changing jobs
When Employees Say Financial Wellness Support, They Mean Higher Pay and More Time Off
Employees are looking to their employers to support their financial stability. 62% say higher pay or cost-of-living adjustments would do the most to improve their financial wellness, followed by advancement and performance bonuses (41%) and more paid time off and mental health days (36%).
Interest in traditional financial wellness resources has fallen sharply year over year. The share of employees who want budgeting and savings tools dropped from 44% in 2025 to 11% in 2026, while interest in financial education or access to an advisor fell from 35% to 13%.
Employees are shifting toward direct economic support
Pay and time off gained ground in 2026, while financial tools, guidance and personalized support were selected much less often.
The Financial Wellness Gap Is Wider for Some Employees
Workers with debt, limited savings and second jobs are more likely to struggle between paydays and less likely to feel supported by their employers.
Employees Under the Most Financial Pressure Feel the Least Supported
More than half of employees with less than three months of emergency savings (56%) and those carrying medical debt (55%) feel little or no financial wellness support from their employers. Half (50%) of employees with a second job or gig work say the same.
The same groups are also experiencing greater financial strain. Among employees carrying medical debt, 69% were unable to cover an essential expense before payday, including 45% who experienced it more than once. Employees with second jobs or gig work and renters also show greater interest in faster access to their earnings.
Financial circumstances shape how employees experience employer support
How well does the company support employees' financial wellness?
Financial pressure is concentrated among employees already carrying debt
In the past 12 months, were you unable to cover an essential expense because payday was still days away?
Employees’ financial circumstances shape the support they want
How could your employer better support your financial wellness as an employee? Select up to three.
The 2026 Employee Financial Wellness Report
The 2026 Employee Financial Wellness Report is Payroll Integrations' third annual study of the relationship between employers and employees around financial wellness and benefits.
The research was conducted by market research firm Dynata on behalf of Payroll Integrations and is based on responses from 329 full-time U.S. workers across four age groups and all 50 states.