Workers Have Lost Faith in Employer Money Help, Survey Finds

A new survey delivers a blunt verdict: Workers Have Lost Faith in Employer Money Help, Survey Finds. The share of employees who say their employer supports their financial well-being dropped from 74% last year to 35% this year, according to a release published on Business Wire summarizing the third annual edition of the survey. The research, conducted by market research firm Dynata, is based on responses from 329 full-time workers across the United States.

The fallout is already visible on the job. Nearly half of employers say they have seen turnover in the past year driven mainly by dissatisfaction with pay or benefits. On the worker side, 46% could not cover an essential expense before payday at some point in the past year, and about one in four ran into that problem more than once. The takeaway in one line: Workers Have Lost Faith in Employer Money Help, Survey Finds — and the gap between what employers offer and what employees feel is only widening.

The youngest workers are the most confident

Gen Z employees are the most optimistic generation about retirement, with 48% saying they feel confident, according to the survey — ahead of 38% of Millennials, 31% of Gen X and 22% of Boomers. Younger workers also plan to stop working sooner: most Gen Z employees expect to retire before age 65, compared with about a third of Millennials, a similar share of Gen X and just 3% of Boomers.

That optimism stands next to a bleaker headline number. While 82% of employees contribute to a retirement plan, only 34% believe they will retire comfortably. The rising cost of living is the top barrier to retirement confidence for 45% of workers, with worries about Social Security and not saving enough each month close behind.

Present-day pressure is already raiding future savings. More than one in five workers have withdrawn money from their retirement funds, most often to cover day-to-day costs, unexpected emergencies, high-interest debt or housing, the survey reports. Another 9% say they plan to make a withdrawal within the next year.

Financial stress is following people into the office

Money trouble is turning into a workplace problem. Nearly two in five employees say financial stress has strongly affected their mental health at work, and about a third say it has damaged their focus or productivity. Over the past year, 41% report being distracted or less productive at work — echoing earlier reporting on money stress draining young workers’ output — 26% took on a second job and 23% declined benefits their employer offered because of the cost.

The strain is also moving people toward the exit. Nearly two-thirds of employees have considered changing jobs because of financial concerns in the past year. When they name what would make them switch, 52% point to higher pay and 32% to better benefits.

What employees want: raises, not resources

The message for employers is blunt: money beats perks. Nearly two in three employees say higher pay or cost-of-living adjustments would do the most to improve their financial wellness, followed by four in ten who name advancement and performance bonuses and 36% who want more paid time off and mental health days. It is more evidence for the survey’s headline finding: Workers Have Lost Faith in Employer Money Help, Survey Finds.

Traditional wellness resources have lost their audience. The share of workers interested in budgeting and savings tools fell from 44% last year to 11% this year, while interest in financial education or access to an adviser dropped from about a third to 13%.

The perception gap employers cannot see

The survey points to a disconnect: companies keep adding benefits while employees feel less and less supported. “The widening gap between how employers view their financial wellness support and how employees experience it is a sign that offering benefits alone isn’t enough,” said Doug Sabella, CEO and co-founder of Payroll Integrations, in the release. He added that employers need to check whether the benefits they offer actually help workers handle today’s financial pressure.

What it means if you are early in your career

For young workers, the takeaway is practical. A pay raise or cost-of-living adjustment does more for financial wellness than any perk package, and emergency savings come first: just 17% of workers with less than three months of savings feel well supported by their employer. If you are early in your career, the practical move is the unglamorous one: push for pay that keeps up with living costs and build a cash cushion before chasing perks. Workers juggling a second job or gig work are also the most likely to want faster access to money they have already earned — 33% want earned wage access, compared with 12% of other employees.

Three years into the annual survey, one headline keeps proving true: Workers Have Lost Faith in Employer Money Help, Survey Finds. The bigger lesson is that a benefits list is not the same as support. If your workplace offers wellness tools you never use, the survey suggests you are not alone — and that asking for pay that keeps up with costs is the request most likely to move the needle.