Archived Insight | January 12, 2024
It’s no secret that many American workers are stressed about their finances. Market fluctuations, long-lasting inflation and civil and geopolitical unrest have left workers feeling pessimistic about ever reaching their financial goals.
According to Bank of America’s 2023 Workplace Benefits Report, only 42 percent of employees feel financially well, a percentage that’s declining year-over-year and at its lowest since the annual survey began in 2010.
This financial struggle is most evident for Millennial and Gen Z workers struggling to afford their first home. A multitude of factors have combined to keep this key financial milestone out of reach for many young workers: the burdensome cost of higher education, high cost of living, pandemic-era supply chain issues driving up the cost of homes, high interest rates resulting in prohibitively high mortgage rates and the resumption of federal student loan payments.
While this is a frustrating reality for many Americans, the good news is that employers can help and provide a high-value benefit to their employees. Financial wellness benefits can help employees achieve their financial goals, including buying their first home, in a variety of ways:
Financial insecurity is a pervasive issue that restricts young workers’ access to prior generations’ primary wealth-building tool. Employers can provide a cost-efficient benefit to their employees that addresses this issue, strengthens their relationship with their people and attracts and retains employees in a competitive talent market.
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This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.