3 in 10 U.S. workers struggling financially, WTW survey finds

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[{"type":"text","content":"Cost concerns contributed to workers deferring or canceling medical care\nARLINGTON, Va., June 16, 2022 (GLOBE NEWSWIRE) -- Three in 10 U.S. workers (30%) are struggling financially, and more than two in five workers (43%) are having difficulty meeting basic needs, according to research from the 2022 Global Benefits Attitudes Survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. The survey also found a significant number of employees deferred medical care last year because of time constraints, COVID-19 concerns and cost reasons. Employee financial wellbeing has been deteriorating since the start of the pandemic. According to the survey, more employees are living paycheck to paycheck — 41% this year versus 38% in 2019. Among workers earning $100,000 or more, the number of employees living paycheck to paycheck doubled from 18% in 2019 to 36% this year. Over half of workers earning less than $50,000 (52%), single parents (53%), and those in poor or fair health (57%) are also living paycheck to paycheck. Additionally, employees living paycheck to paycheck are almost twice as likely to leave their employer for a 5% raise (48%) compared with those not living paycheck to paycheck (29%). The survey of more than 9,600 U.S. workers was conducted during December 2021 and January 2022. Financial issues are widespread, according to the survey. Many workers reported having difficulty accessing or paying for housing (23%), healthcare (22%) or healthy food (19%), while nearly half suffered a financial shock in the past year. Three in 10 (31%) incurred a significant medical expense, while 23% were placed on furlough or had their hours reduced. About one in seven (15%) were victims of a financial fraud or scam, while 13% experienced significant expenses due to a divorce or separation. These financial shocks might have led to financial moves that could undermine employees’ long-term security, including taking a home equity loan or downsizing their home (23%); taking a 401(k) loan (26%); or being unable to pay their mortgage, rent or utility bills (36%). “The pandemic continues to affect the financial wellbeing of working Americans,” said Mark Smrecek, senior director, Retirement, WTW. “The link between financial stability and overall wellbeing has become even more precarious as employees fret over inflation, econom...

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