Most American workers continue to feel financially unprepared for retirement, according to Human Interest’s Retirement Roadblocks Survey 2025. The survey of over 2,000 full-time U.S. workers reveals that retirement is often treated like an emergency fund used for unexpected expenses like medical bills or layoffs rather than a planned milestone.
Retirement is one of the top three life events for which employees are least financially prepared, according to 60% of employees aged 55 and older. Yet, this behavior may heighten feelings of unpreparedness, according to the survey. Workers understand that prematurely dipping into retirement savings jeopardizes their long-term financial security, leading to increased anxiety and a sense of being ill-equipped for their future.
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“While 95% of companies with over 500 employees offer a retirement savings plan, only 48% of companies with less than 50 employees do so,” said Marc Fowler, Human Interest’s Retirement Education Director. “It’s estimated that 57 million Americans (nearly half of all workers) do not have access to an employer-sponsored retirement plan. This greatly reduces their ability to save for retirement, as Americans are 15 times more likely to save for retirement when they have a workplace plan and 20 times more likely to save if contributions are automatic. In short, Americans are unlikely to save for retirement if their employer does not facilitate it.”
With recession fears and economic uncertainty, it’s no surprise that there is a strong demand for sound financial guidance, but it may be surprising that people are turning to their employers to provide it. “Our Retirement Roadblocks Report highlights workers’ strong desire for financial education, not just in specific areas like retirement investing, but in general financial wellness. Indeed, 87% of employees we surveyed said they’d be more likely to stay with companies that provide financial literacy resources,” said Fowler.
Yet, one in three employees say they receive no financial resources from their employer at all. That’s why investing in financial literacy resources can be a strategic move for employers, as 33% of workers report receiving no financial resources. The survey data reveals a significant desire for employer-led educational resources focused on 401(k) contributions, tax planning, and emergency savings, all essential for employee financial well-being and retirement readiness.
If their employers offered financial literacy resources, 87% of employees said they would be more likely to stay with an employer that offered financial literacy resources.
If employers invest in comprehensive financial literacy programs with a focus on retirement planning (programs that do not necessarily have to be costly), they can accomplish two very important goals: helping workers with their immediate and long-term financial concerns and empowering them to be more productive and motivated.
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However, employers may mistakenly believe that financial literacy requires expensive tooling, but employees ultimately prefer practical, accessible resources, which may include inexpensive or even free resources.
“Often employees are not aware of the breadth of resources that their employer may provide - so an easy and cost-effective first step is for HR leaders to make sure employees are educated on their current benefits package,” said Fowler.
The research shows employees are interested in a range of resources, including assistance with budgeting and retirement calculators. “After core benefits, access to a financial advisor is the most desired workplace perk (30%),” said Fowler. “Companies could provide sessions with their own financial advisor in either a group or 1-to-1 setting, or bring in a certified external provider” to help bridge the retirement savings gap and foster a more financially secure and engaged workforce.
“Some advisors, retirement plan providers, and other third-party financial literacy providers offer additional financial wellness services for HR and benefits teams, including resource articles, calculators and planning tools, or individualized financial coaching.
“Employers may assume that financial literacy means expensive tooling. But our report suggests employees want practical, accessible resources. When asked to rank their top three most helpful financial tools, respondents preferred the following: 49% a finance or budgeting class, 45% a financial literacy hub, and 44% a retirement savings calculator. This shows that cost-effective resources may help encourage retirement readiness.”
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
