Jane has been losing sleep. Although she works for a midsized firm and is well paid, money worries have been taking a toll. The rising cost of living, concerns about job stability and stock market volatility are all affecting her financial well-being, impacting her mental health, her self-esteem and her relationships at home.
Sound familiar? You might have picked up on similar concerns among your employees, whose worries about their financial security, savings and retirement plans have been mounting in recent years. Nearly 3 in 4 employees (71%) say that financial stress negatively affects both their work and personal lives, according to the second annual State of the Workplace study conducted by Morgan Stanley at Work.1 Their challenges span the gamut, from difficulty paying off debt to concerns about facing a financial crisis to mounting needs to draw on their emergency savings and struggles managing their money.1
In response to these concerns, 62% of employees have reduced contributions to their short- and long-term savings, with 401(k) plans taking the biggest hit (31%).1 Overall, respondents cited a need for help to understand how to maximize their workplace financial benefits, and feel their employers should be more involved in helping them navigate their financial troubles.