Workers are stressed about retirement. Here's what employers can do

• Key Insight: Uncover how rising everyday expenses are shifting the share of employees off track.
• What's at Stake: Workers risking their long-term retirement security as daily expenses escalate.
• Supporting Data: 72% of employees off track for retirement in 2026.
• Forward Look: Prepare for employees expecting to work longer than planned.
  Source: Bullets generated by AI with editorial review

The number of U.S. workers struggling to save for retirement is on the rise, adding to the financial strain many employees are already experiencing.

A recent study by employee benefits consulting firm NFP found the share of employees who are off track for retirement increased from 68% in 2025 to 72% in 2026, driven by the rising costs of essentials such as housing, car payments and healthcare.

At the same time, workers are grappling with elevated financial stress as they try to balance day-to-day expenses with long-term retirement goals.

All of this creates an opportunity for benefit leaders to move beyond traditional financial wellness programs and take a more holistic approach to supporting employees' financial well-being, said Scott Berlin, head of New York Life Group Insurance. 

"Training [HR] leaders to recognize stress signals, initiate meaningful check-ins and connect employees to the right benefits at the right time can make a material difference," Berlin said.

Here are some of the other trends shaping retirements and financial wellness right now.

Workers struggling to save for retirement

Vestwell's 2026 Saver Survey found that workers are struggling to balance rising everyday expenses with saving for retirement, regardless of income. Just 26% of employees said they were very confident they were allocating their money in the best way to meet their financial goals, while 63% said day-to-day costs were preventing them from saving for retirement.

The findings suggest employers have an opportunity to provide more personalized financial guidance. Although employees are looking for help managing competing priorities such as emergency savings, debt and retirement contributions, few currently rely on their employer's benefits platform for financial advice, instead turning to friends, financial advisers, online resources and AI tools.

Read more: From liability to stability: Helping workers balance retirement savings and everyday expensesHow life expectancy expectations shape retirement saving habitsShoring up retirement readiness will renew the American DreamThe 1% difference that can boost your retirement savings

The financial wellness perception gap

A new Bank of America report found a significant disconnect between how employers and employees view workers' financial well-being. While 71% of employers believe their workforce is in good or excellent financial shape, only 55% of employees agree. Although workers' financial confidence has improved to a four-year high, most still report feeling stressed by the economy, inflation, and the rising cost of living.

The report also found retirement remains employees' top financial priority, with more workers feeling on track to meet their retirement and emergency savings goals. Bank of America said employers that invest in financial wellness benefits are seeing gains in employee satisfaction, engagement and retention, highlighting the business value of supporting workers' financial health.

Read more: Employee financial wellness hits 4-year high, but employers miss key struggles3 ways well-designed benefit programs go beyond financial wellnessThe positive impacts of employee financial wellnessNew technologies help advisers elevate financial wellness offerings

Retirees reflect on financial regrets

A TIAA Institute study found that many retirees wish they had made different financial decisions before leaving the workforce. More than three-quarters (76%) regret not starting to save earlier, while 71% wish they had saved more. Many also said they underestimated healthcare costs and failed to plan for unexpected events such as job loss, caregiving responsibilities, and health issues that disrupted their retirement plans.

The report suggests employers can help workers avoid those pitfalls by offering stronger retirement planning resources, emergency savings programs, and guidance during career transitions. Researchers also found that many employees expect to work longer than planned, underscoring the need for benefits that support both long-term financial security and workforce flexibility.

Read more: Most retirees wish they had saved earlier. Here's what they regret mostHow to reach retirement regret-freeAmericans share their 5 biggest financial regretsThis year, employees' benefits decisions are financial

Workers fear falling short in retirement

A new Schroders survey found a growing gap between how much Americans think they will need for retirement and how much they expect to actually save. While workers estimate they will need about $1.2 million to retire comfortably, only 30% believe they will reach $1 million in savings, and more than half expect to retire with less than $500,000. Rising costs, debt, and competing financial priorities are making it harder for workers to stay on track.

The report also found many employees are turning to workplace retirement plans to manage short-term financial pressures, with some reducing contributions or taking loans to cover debt and emergencies. Schroders said employers have an opportunity to provide more holistic retirement support that addresses broader financial challenges, including emergency savings, debt management, and personalized investment guidance.

Read more: Americans say they need $1.2 million to retire. Many won't get closeMore workers are off track for retirement, but employer resources could helpHow to best bolster retirement readinessNavigating retirement insecurity with the right workplace benefits