More workers are off track for retirement, but employer resources could help

• Key Insight: See why employees are falling behind on retirement despite widespread digital tools.
• What's at Stake: Workers who risk falling deeper into debt as essential costs rise.
• Forward Look: Prepare for advisers to meet employees where they are financially and personally.
• Source: Bullets generated by AI with editorial review

With financial stress on the rise, workers' hopes for a comfortable retirement are fading, underscoring the growing need for employers to help their workforce make informed financial decisions. 

New research from employee benefits consulting firm NFP shows the share of employees who are off track for retirement rose from 68% in 2025 to 72% in 2026, as rising costs for essentials such as housing, car payments and healthcare leave many workers with little room to save for the future. 

"The more one-on-one conversations we have with people, the more I'm finding that the priorities between goals, wants and needs are ever-changing," said Steve Jans, wealth management national practice leader at NFP. "Unfortunately, the wants creep in and take dollars away from needs, and we find ourselves in debt." 

The report from NFP is based on a survey of 1,000 U.S. working adults aged 18 and older who are involved in financial planning decisions for their household. 

In addition to challenges around retirement readiness, employee awareness and understanding of employer-sponsored resources are also declining, with only 42% of employees knowledgeable of available services and 34% knowing how to use them — down from 55% and 44%, respectively, last year.

Read more: Most retirees wish they had saved earlier. Here's what they regret most

Additionally, workers often lack clarity about the non-401(k) benefits available through their employers, with an average of 25% unsure whether specific benefits were offered.

Although digital resources such as AI retirement calculators have never been more widely available, most people are still looking for one-on-one human guidance when it comes to financial planning, Jans said. 

"I often talk about when my career started 30 years ago, I was the one standing in front of employees, focusing on the retirement plan and why a 401(k) is important," he said. "But the aha moment for me was when I'd stand in front of a group of employees and talk about the importance of saving for retirement. Then, the minute that ended, they'd put me in a conference room. I'd sit there all day, and people would come in one-on-one, but the conversations were about everything other than the 401(k) plan. They were asking, 'How do I pay off a credit card? How do I save more for my kids' education? How do I buy a house?' So providing that confidential setting is really impactful." 

Meeting employees where they are

When employees do engage with financial professionals, the impact is clear, according to NFP's report. Sixty-two percent of survey respondents said one-on-one meetings with financial professionals are a helpful retirement-planning resource and consistently rated them as more helpful than other available resources. Additionally, 84% said they would consider working with an adviser if given the opportunity.

Read more: A shift in retirement: Why more companies back guaranteed income

Despite that interest, several factors are holding employees back. Employees' perception that they don't have or earn enough money to invest (24%) remains the primary barrier. Others question the value of working with an adviser (24%), worry they will incur fees (20%) or are unsure how financial professionals can help them (19%).

"Employer-provided financial advisers play a central role in how American workers approach retirement planning," said Jessica Espinoza, NFP national practice leader of retirement advisory. "One-on-one guidance is especially effective in helping employees navigate complex decisions, build confidence, and turn intention into action — but too many employees aren't taking the necessary first step."

Read more: Americans say they need $1.2 million to retire. Many won't get close

That first step, Jans said, is creating a personalized plan and having conversations that meet employees where they are financially and personally.

"You can't globally go in and say, 'Hey, you need a million bucks to retire.' You need to go in and meet people. If they're in their 20s, they've got a subset of issues. If they're in their 50s, they've got a subset of issues. We've got to meet them where they're at and then walk with them."