The 2016 edition of PwC’s Employee Financial Wellness Survey tracks the financial well-being of full-time employed U.S. adults nationwide. This year it incorporates the views of 1,600 full-time employed adults.
After several years of improvements, this year marks the first time we are seeing a downward slide in many of the key indicators of employee financial wellness. Overall, this year’s survey highlights just how fragile the situation is with regard to employees and their personal financial well-being.
Financial stress is up in 2016 with 52% of employees stressed about their finances. With 45% of employees saying that financial matters cause them the most stress in their lives—nearly as many as those whose top stress is their job, health, or relationships combined—financial wellness is emerging as a key factor in an employee’s overall well-being.
In 2015, Millennials surpassed Gen X to become the largest share of the U.S. workforce. But when it comes to personal finances, we find that Millennial employees tend to be in worse shape than their older counterparts.
Kent E. Allison
Partner & National Practice Leader
Given the growing concern around student loans, we delved deeper into the issue this year and discovered that student debt appears to have a dramatic effect on employee financial well-being. Our results support that the concern around student debt is not only justified, but possibly has even greater ramifications than initially thought.
Although nearly three-quarters of employees are currently saving for retirement, it's unlikely they'll be prepared. Nearly half have saved less than $50,000 for retirement and more than one-quarter are saving less than last year.
In addition, nearly one-quarter of all employees has already withdrawn money from retirement plans and 43% think it’s likely they’ll need to use money from their retirement plans for non-retirement expenses.
Find out how we empower employees to make educated decisions to improve their financial well-being.
Read about how ALM Intelligence describes wellness consulting as integral to business strategy and names PwC as a vanguard in this area with a financial well-being offering that is ahead of the curve.