Financially Strained Employees Seek Benefits Guidance

Workplace benefits are often employees’ primary entry points to long-term investment and savings vehicles such as retirement plans. However, economic pressures are forcing workers to make trade-offs when choosing benefits, according to the “State of Employee Benefits Report 2026,” by Benefitfocus, a Voya company.

Financial stress is taking a toll on the mental health and the ability to save of employees, particularly younger workers. Among surveyed Millennials, 79% said financial stress often or sometimes affected their mental health and well-being.

Separate Voya research cited in the report “Voya Financial Consumer Insights & Research” found that 61% of U.S. adults said their ability to save for retirement was significantly or severely impacted by the economy, and 60% said inflation had a similar impact.

The Benefitfocus report found that these financial strains are shaping how employees allocate dollars across workplace benefits, often forcing trade-offs between retirement savings, healthcare spending and emergency reserves. In some cases, according to the report, financial pressures drove employees to tap into their 401(k) plan assets early to cover health-related expenses.

One Nation, Under Stress

A separate survey from personal digital finance company Achieve Co. and financial website Money.com measured how this financial stress was impacting the general population. Of 2,000 U.S. consumers surveyed in February, only about one-third reported living debt-free. Another 34% said they were unable to make their full monthly household debt payments, while 28% described their unsecured debt as “unmanageable.”

The effects extended into daily life and health. Half of respondents reported anxiety about money and 49% experienced sleep issues. Physical symptoms were also common, including fatigue or low energy (50%), headaches (38%), and digestive issues (35%), while 14% had delayed or skipped medical care due to cost.

About 44% of respondents felt overwhelmed, and roughly one-quarter reported relationship strain linked to money stress. About 20% reported using alcohol or other substances as a coping mechanism.

On the household level, 26% overall—and 47% of those with unmanageable debt—had cut back on essentials like food and utilities. Others were draining emergency savings (23%) or turning to payday loans (11%). Despite these circumstances, 75% believed their financial situation would improve.

Maximizing Benefits

The data indicate a growing employee demand for guidance. In the Benefitfocus survey, 75% of all employees expressed interest in receiving advice that could help maximize workplace benefits, including retirement plans, health savings accounts, insurance and voluntary benefits. 

Demand was particularly strong for personalized support, with 78% of respondents saying they were interested in tailored guidance on benefit decisions, while 67% reported interest in holistic financial planning offered through their employer.

“With rising costs, economic pressure and growing mental health needs, employers are under real scrutiny to decide where benefit dollars will have the greatest impact,” wrote Andrew Stocker, president of employee benefits at Voya Financial Inc., in an email to PLANADVISER. “When benefits are aligned to actual employee needs, employers can help drive and support healthier behaviors, stronger engagement and better productivity without simply increasing spend.”

The Benefitfocus report recommended that employers offer tools that illustrate how employees can allocate their “next best dollar” across competing needs, including healthcare, retirement savings and emergency funds. Employers can also provide voluntary financial benefits such as financial coaching, short-term loans and student loan refinancing.

“Feeling confident about benefits starts with being informed, educated and connected—not just during open enrollment, but year‑round,” wrote Pat Tupper, a Voya senior vice president and head of Benefitfocus, in an email to PLANADVISER. “We see clearly how personalized guidance can help employees make optimal, informed choices while helping employers manage costs.”

Benefitfocus studied the enrollment transactions of 316 “large” employers (each with at least 1,000 employees) in its customer base, totaling more than 1.8 million full-time employees.