A large majority of US workers remain under financial strain, with more than half living paycheck to paycheck and many seeing their savings dwindle, according to a new survey by The Hartford.
The insurer’s sixth annual Future of Benefits Study, released Wednesday, reveals how employees and employers are navigating financial stress, benefits usage, and the rise of AI in the workplace. The study surveyed US workers and HR professionals to gauge sentiment on personal finances, digital engagement, and the evolving role of employee benefits.
About 72% of workers said they are at least somewhat stressed about their household finances, a figure unchanged from the 2024 survey. A third of respondents described their stress as very or extremely high. The study also found that 51% of workers reported living paycheck to paycheck, while 53% said their savings had declined over the past 12 months. Financial concerns are also affecting productivity, with 56% of workers saying their financial health has had a negative impact on their performance at work.
Mike Fish, head of employee benefits at The Hartford, said employers can play a more active role in supporting workers through meaningful benefits offerings and education. "Workplace benefits are more than just a perk; they’re a meaningful source of financial support," he said.
While most employers and employees agree that benefits improve financial security, utilisation remains a challenge. Three out of four employers said the benefits they offer are underused, which highlights a disconnect between availability and employee understanding. Many employers are taking steps to expand their offerings, with 34% adding new benefits this year and over half planning to do so in 2026. Despite this progress, confusion around how to use benefits remains a barrier.
Fish said employers need to adopt a more consistent and personalised approach to communicating benefits. Rather than focusing only on annual enrolment periods, he encouraged companies to use year-round education and digital tools to keep employees engaged and informed.
Employee benefits also remain a key factor in job mobility. The study found that 82% of workers consider benefits important when evaluating a new job. More than half said they would consider changing jobs for access to a more comprehensive benefits package.
Employers are increasingly optimistic about the role of artificial intelligence in benefits delivery, with 72% expressing more positive views about AI than in 2024.
However, only 29% of workers said they feel the same. The disconnect suggests that companies may need to do more to demonstrate how digital solutions can enhance the employee experience.
Although digital tools are becoming more common, many workers still prefer human interaction for benefits-related decisions. More employees said they would rather speak to a person when requesting a leave of absence, learning about benefits during open enrolment, or selecting a benefits package.
