Here Are the Unique Reasons Different Generations Are Stressed About Money

Around 70% of U.S. employees are stressed about money, according to PNC’s 2024 Financial Wellness in the Workplace report. However, the exact causes of this stress may vary significantly by generation. Where younger employees mainly worry about short-term issues like monthly expenses, Gen X and Baby Boomers worry about their long-term ability to retire comfortably and on time.

These varied stressors can complicate the process of supporting a multi-generational workforce. However, if business leaders can recognize the unique worries facing each age group, they can successfully implement customizable benefits solutions that meet employees wherever they may be.

Financial stress leads to higher turnover for employees stressed about money

Financial stress doesn’t just hurt employees at home—it can spill over into the workplace if not addressed. According to PNC, employees spend roughly three hours each week at work worrying about their finances. Over time, this distraction can hinder their overall workplace performance and harm an organization’s overall success.

What’s more, financial stress can have an amplifying effect on turnover. Employees stressed about money are twice as likely to seek a new job than their financially secure peers. To keep employees engaged and committed to long-term success, employers must start by identifying the unique causes of financial instability for each generation, and then offering customized solutions to address them.
Generation Z & Millennials: Most stressed about student loans

Generation Z, born from 1996 to 2012, represents the youngest group in today’s workforce. Most Gen Z employees are just starting their careers and beginning to repay student debt, having recently finished college, university or vocational training.

Millennials, born from 1981 to 1996, also face the looming burden of paying off educational costs. In recent decades, the cost of secondary education has skyrocketed across the board — the average undergraduate tuition has nearly tripled from 1980 to today, according to the National Center for Education Statistics (NCES).

Solution: Invest in student loan financing and repayment assistance.

Studies show that student loan debt is the most challenging debt to pay off, largely due to inflation, high tuition rates and compounded interest. It takes the average student borrower around 20 years to repay their loans, during which time they may be at risk of delaying one or more other major life events due to costs.
So it comes as little surprise that over 1 in 3 US employees wish their employer offered student loan financing and repayment assistance benefits, according to PNC’s report. Moreover, these benefits aren’t just limited to younger generations. Tuition assistance can also support older employees who may still be paying off graduate school loans or helping their children with educational expenses.

Generation X: Most stressed about balancing current expense and future savings

Between Baby Boomers and Millennials lies Generation X. Born between 1965 and 1980, Gen X is second closest to retirement, behind Baby Boomers.

Members of Gen X often struggle with saving for retirement while managing their current expenses. With limited disposable income, many Gen X employees prioritize essential costs like rent, groceries and car insurance over contributing to their retirement accounts. In some cases, this has led these employees to borrow from their 401(k) to cover immediate financial needs.

Currently, about 40% of Gen X employees have no retirement savings at all, according to the National Institute on Retirement Security. Fortunately, even the oldest members of this generation still have time to build their retirement savings.

Solution: Offer to support employees’ 401(k)s with matching contributions.

Many companies have introduced match contribution programs to help employees manage current expenses while building savings for the future. With these programs, employers contribute an equal amount for every dollar an employee saves in their 401(k), making it easier to grow retirement savings.

Today over 50% of employers offer company match programs, compared to 46% in 2023. Match programs can help employees exponentially grow their retirement savings. This can be especially valuable for employees trying to catch up on their retirement savings.

Baby Boomers: Most stressed about retirement preparedness

Those born between 1946 to 1964 are known as Baby Boomers and worry about long-term security as they approach retirement age. Although some Baby Boomers have already retired, others are still in the workforce getting ready to enter retirement.

A common worry for Baby Boomers is if — and when — will they be able to retire. Entering retirement is a big step in a person’s life. That said, pre-retirees, including Baby Boomers, must understand how much money they need to live comfortably in retirement. This can help alleviate financial concerns, such as not having enough money to retire or potentially outliving one’s savings.

Solution: Provide one-on-one financial advising to bolster retirement planning.

When it comes to retirement planning, many employees, including pre-retirees, aren’t sure where to start. Thankfully, with the support of knowledgeable financial advisors, employees can assess their r readiness and receive tactical steps to save for the future.

Providing one-on-one financial advising gives employees the personalized guidance they need to tackle and reduce their biggest financial stressors.

How U.S. Legal Services and Best Money Moves Can Help

U.S. Legal Services has partnered with Best Money Moves, a customizable financial wellness platform, to offer accessible, award-winning financial education. Best Money Moves works with our legal plans to help employees of every age make smarter decisions about managing their money.
With interactive, user-friendly tools and a digital-first platform, Best Money Moves offers comprehensive and accessible resources for users of all experience levels. The program is entirely customizable to individual user experience, so there’s something for every employee – regardless of age or financial background.

To learn more about how group legal insurance benefits and financial wellness can support your team, contact us online or call 1.800.356.LAWS or visit www.uslegalservices.net for a quote.