Majority of US employees worried about meeting basic costs, WTW survey finds

About this update from Willis Towers Watson Public Limited Company

[{"type":"text","content":"With mounting financial woes, retirement confidence declines\nNEW YORK, June 24, 2024 (GLOBE NEWSWIRE) -- A majority (88%) of U.S. workers are struggling to meet basic living costs, fueling a sharp decline in retirement confidence. This is according to a new survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. The survey of 10,000 U.S. employees also revealed a sharp disconnect between the financial wellbeing support employees want from their employer and what companies are delivering. The 2024 Global Benefits Attitudes Survey found nearly half of employees (46%) are extremely worried about paying for basic living costs. Employees ranked food (73%), healthcare (72%), housing (69%) and transportation (66%) as their main cost concerns. The number of employees who report living paycheck to paycheck climbed from 37% in 2020 to 44% this year, while the number of employees who said they were worse off financially compared with a year ago more than doubled from 2019 (16%) to this year (33%). Four in 10 employees (41%) are not on the right track with respect to their finances, and nearly a quarter (21%) expect their financial situation to worsen over the next year. Moreover, 59% of employees said money concerns are having a negative impact on their overall wellbeing, resulting in missed medical appointments, higher levels of stress and anxiety, and less likelihood of meeting with friends and family. “High inflation combined with the aftermath of a once-in-a-generation pandemic is causing many employees to feel overwhelmed and discouraged about their financial situation, which is affecting overall wellbeing,” said Mark Smrecek, senior director, Retirement, WTW. “Employers should take action to improve financial wellbeing within their organizations by adequately educating employees on their resources to close financial gaps and connecting employees with relevant elements of their total rewards package.” Growing financial problems and uncertainty with inflation are also affecting employees’ retirement confidence and savings. Nearly half (46%) of older workers (age 50 and higher) expect to work past age 70, a sharp rise from 36% two years ago and 30% prior to the pandemic. Additionally, eight in 10 workers (79%) admit they aren’t saving as much for retirement as they should be, and only half (52%) are on th...

More updates from Willis Towers Watson Public Limited Company