An annual study from Newark-based Prudential Financial released this week, “Benefits & Beyond,” shows how economic uncertainty and rising medical costs are exacerbating financial stress and placing added strain on employees’ mental health.
Financial stress is no longer just a budget concern for employees; it is increasingly linked to mental strain and health decisions, with ripple effects on workplace engagement.
The study also highlights a significant disconnect between employers’ beliefs about how they support employees and employees’ perceptions. While 75% of employers believe they are doing enough to help manage medical costs, only 46% of employees agree.
In “The Future of Work: Building financial resilience in an era of rising costs,” the first installment from the study, Prudential learned that 68% of employees experienced at least some financial stress in the past 12 months, with 28% saying it was a significant or overwhelming concern.
This pressure is also driving 45% of employees to report experiencing more mental stress over the past year due to financial concerns, with this figure rising to 50% for Gen Z.
Rising medical costs are another significant source of stress and are affecting health decisions. Seven in 10 employees (71%) saw at least a 5% increase in medical costs, and nearly one in five (22%) experienced increases of 15% or more.
Employees say rising medical expenses significantly affect their financial stress (32%), mental health (22%), and physical health (22%).
Additionally, only 13% of workers turned to employer resources for help.
In March, Prudential Financials’ Board of Directors appointed CEO Andrew Sullivan to the additional role of chairman of the board.
