A new study from Lincoln Financial paints a detailed picture of the financial pressures facing full-time employees across the US, with implications for advisors seeking to address client needs in the workplace.
According to the insurer's 2025 Wellness@Work Study, fewer than half of full-time workers (48%) report feeling financially secure. The survey, which included responses from more than 2,500 employees, found that debt, rising living costs, and competing financial priorities are eroding confidence in financial wellness.
The most financially strained groups in the Lincoln survey included the usual suspects – younger adults and women – as well as non-married employees, small-business staff, and healthcare professionals.
Notably, 78% of workers are juggling at least three competing financial priorities, and 82% report carrying debt. The burden is especially acute for younger generations, with 72% of Gen Z and 71% of millennials saying their debt is a problem, compared with 58% of Gen X and 50% of baby boomers.
A report from FICO published Tuesday revealed national average credit scores degrading for the econd year straight, with more consumers falling into debt and missing payments as their credit card balances rise. Student loan delinquencies were also a major pain point, according to FICO.
Medical expenses are a major disruptor, with 41% of employees in the Lincoln survey facing moderate to major medical bills in the past year – a figure that rises among younger workers, those with children, and employees in construction or healthcare. One in five employees currently carries medical debt, highlighting the persistent challenge of unexpected health costs even for those with insurance.
Retirement readiness remains a significant concern. Only 28% of workers say they are highly confident in their ability to retire, while 45% fear they may never be able to do so.
The study found that employees with a specific retirement goal are three times more likely to contribute at least 15% of their income to retirement savings, and those who work with a financial professional are twice as likely to feel confident about their financial decisions.
When asked why they're saving less than they want, respondents identified inflation the primary factor, cited by more than half of Gen Z (54%), Millennials (60%), and Gen Xers (53%), as well as 50% of Baby Boomers.
The report also points to a knowledge gap: just half of employees are very familiar with the benefits available to them, and only 35% feel very confident about how much they should be saving. This uncertainty is more pronounced among Gen Z and millennials, as well as lower-income workers and those at smaller companies.
“Employees are looking to their employers not just for a paycheck, but for guidance and tools that can help them build financial confidence,” said Jimmy Reid, executive vice president and president of workplace solutions at Lincoln Financial.
Supplemental benefits, such as accident, critical illness, and hospital indemnity insurance, are gaining traction as employees seek ways to manage risk and offset unexpected costs. The study found that employees enrolled in at least one supplemental health benefit have a 5% higher median retirement savings rate than those who are not.
To help address those issues, Lincoln suggested that employers can offer products such as guaranteed income solutions, managed accounts, and target-date funds. Annual open enrolment and education around their benefit options can also boost retention and engagement among employees, Lincoln said.
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