Report Finds Increase in Financial Stress, Mental Health Issues
A new report from The Hartford found increased financial stress has taken a toll on the majority of U.S. workers.
Financial stress is highest among young workers, according to the report.
Approximately 900 full-time and part-time employees responded to the November 2022 survey.
Sixty-three percent of workers feel their financial stress has increased over the past year, and over half (56%) say that stress negatively impacted their mental health.
Almost two-thirds (65%) of workers aged 18-34 said their financial stress increased over the past year, with two-thirds saying it negatively impacted their mental health and 59% living paycheck to paycheck.
“The rising rate of financial stress along with its negative effect on employee mental health is a warning for employers of all sizes,” said Laura Marzi, benefits expert and head of marketing for group benefits at The Hartford.
Thirty-nine percent of workers have less than $1,000 in savings, leaving them financially vulnerable to an emergency, researchers said.
But nearly half (49%) said they would rely on savings to make ends meet if they experience an injury or illness that prevents them from working for 12 weeks or more.
Eighty-one percent of workers are taking steps to prepare for a possible recession, including:
- Cutting back on day-to-day expenses (40%)
- Paying off debt (30%)
- Increasing contributions to savings and/or investment accounts (23%)
- Looking for a higher-paying job (19%)
- Getting a second job to increase their household income (17%)
When asked about their personal finances, 44% felt negatively going into 2023, 42% felt optimistic, and 14% were neutral.
“We know many employers offer benefits and tools to help address the physical, financial, and mental health of their workforce,” Marzi said.
“Employers who take notice of this trend and make these benefits easier to understand and more accessible will benefit from employees who are healthier, happier, and more productive.”
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