Employees feel bleak about their financial futures, despite robust benefits

Employees of every demographic feel increased negativity about their financial situations, despite greater investments by employers to improve financial wellness. 

According to a recent report by financial wellness platform nudge, global financial well-being has taken a sharp hit in 2025, with optimism about money plunging from 60% in 2024 to just 29% in 2025 — nearing pandemic lows. Inflation, housing affordability and healthcare costs top the list of concerns, but the way these pressures are felt and addressed in the workplace and beyond varies significantly across generations.

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The report shows older generations, particularly those aged 55 and over, are far more likely to be worried about inflation, with 71% citing it as a top concern — the highest of any group. Younger employees, by contrast, face more acute pressures around housing affordability and day-to-day living costs. Many in early career stages report lower financial literacy and confidence, and are also significantly more likely to rely on social media for financial advice, rather than turning toward advisers and other professionals for guidance.

Older workers, while more experienced, can still struggle to adapt to changing financial landscapes. Behaviors such as holding on to poor investments or failing to adjust retirement contributions are more common in this group, particularly during periods of market volatility.

"It's essential to gain an in-depth understanding of your workforce demographics, acknowledge their generational differences and identify commonalities," Cole Harris health innovations practice leader at CBIZ, shared with EBN. "While acknowledging generational differences is critically important, so too is identifying the shared needs and desires that align the various members of the workforce, which can help set the foundation for the development of a successful benefits program." 

Behavioral differences vary across age groups

Generational contrasts emerge clearly in spending and saving habits, according to nudge's report. Younger employees are more likely to quickly reduce discretionary spending — with 47% of women cutting back, compared to 42% of men. Yet those cuts could put their long-term stability at risk, as they are more likely to decrease savings for emergencies or retirement. 

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Mid-career employees often face "financial squeeze" years, balancing mortgage payments, childcare, and sometimes elder care. This juggling act makes them prone to overspending in certain categories, even when household income is higher. Older employees tend to be more risk-averse — avoiding risky investments at higher rates than younger peers — but they can also be slower to adopt new financial tools. 

Improved financial literacy supports well-being

Across all age groups, good or excellent financial literacy consistently leads to better outcomes, nudge's report found. Those with higher literacy are more likely to avoid risky investments (36% vs. 24%), use automated savings tools (35% vs. 22%), and recognize when to adjust spending or investment strategies. They also report better health and well-being, with stress levels nine percentage points lower (35% vs. 44%) and anxiety levels nine points lower (28% vs. 37%) than peers with poor literacy.

Younger generations stand to gain the most from structured financial education. The report shows that employees with strong literacy skills are nearly five times more likely to believe they can navigate future economic changes successfully (28% vs. 6%), and the jump in confidence is most dramatic among Gen Z and younger millennials.

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To address these differences, benefit leaders should lean into personalized financial wellness strategies that match resources to their career stage. For younger employees, for example, the focus might be on budgeting, credit building and the basics of investing. Mid-career workers benefit from debt reduction strategies, advanced investment planning and balancing competing priorities. Older employees need targeted retirement optimization, estate planning and guidance on maximizing healthcare benefits.

Communication strategies should also reflect these generational preferences. Younger employees often engage more with digital-first platforms or gamified learning, while older employees may prefer in-person workshops and one-on-one coaching. Integrating education into existing benefits — such as HSAs, 401(k) matches, student loan repayment programs, and elder care resources — ensures employees see immediate, tangible value.

Real-time interactive tools, including budget trackers, savings simulators, and goal-setting dashboards, can help employees across generations visualize the impact of their choices and adjust as economic conditions change. A workplace culture that normalizes conversations about money, backed by visible leadership support, can further reduce stigma and encourage participation.

"Gaining a better understanding of what offerings a generationally diverse workforce wants to see reflected in their benefits program will optimize an employer's approach," Harris said. "Creating ample opportunities for customization is key."