2021 PwC Employee Financial Wellness Survey

After a year of COVID-19 disrupting people’s lives, finances are the top cause of employee stress, even above job, health, and relationship stress combined. This has added to the stress many employees are already feeling, with nearly two-thirds of full-time employees saying their financial stress has increased since the start of the pandemic.

63% of employees say that their financial stress has increased since the start of the pandemic.

Our 2021 Employee Financial Wellness Survey of 1,600 full-time employed US adults found that many employees are experiencing deep financial strain. Employees whose financial stress has increased due to the pandemic are four times as likely:

*to have experienced a decrease in overall household income
*to find it difficult to meet household expenses on time each month

Twice as likely:

*to have used a payday loan or payday advance in the past year
*to have taken a loan or distribution from retirement accounts
*to be considering postponing their retirement

1. Make the business case for supporting employee financial health

Employee financial distress has intensified in the past year, coinciding with a time in which some employers have taken cost-cutting measures like layoffs, reducing salaries, freezing raises or bonuses or cutting back on other rewards.

2. Recognize what’s happening at home

Our survey of full-time employees offers employers a glimpse into employees’ personal lives and their financial constraints. Overall household income has decreased for more than one in four U.S. employees.

3. Leverage momentum to promote good financial habits

Even during this pandemic year, we see glimmers of positive change. There’s some indication that employees are saving more — 58% of employees are saving more than 10% of their income (vs. 50% last year).

4. Implement a technology solution paired with human interaction and guidance

The economy is expected to rebound, but economists have predicted an unequal recovery that may leave whole segments of the population behind.