As financial uncertainty rises, personal wellbeing is taking a significant hit among U.S. employees. Nearly half of 3,000 U.S. workers surveyed by nudge said financial worries are directly affecting their mental, social and physical health.
Financial optimism has plummeted by 59% year-over-year, with only 28% of employees now saying they feel hopeful about their financial future—down from 68% in 2024. The report attributes this sharp decline to inflation, rising debt, trade tariffs, and the overall rising cost of living.
This growing pessimism is reflected in specific concerns. A majority of respondents said they lack confidence in understanding or managing changes related to trade tariffs. Meanwhile, 63% expect inflation to worsen their financial situation and make everyday necessities less affordable, and 54% say debt is increasing their stress.
Nudge emphasized a strong connection between financial stress and mental health. According to the report, 42% of Americans are experiencing negative mental health impacts due to financial pressure, 37% report anxiety, and 27% say they have experienced depression. Alarmingly, 5% of respondents have experienced suicidal thoughts tied to their financial situation.“This paints a concerning picture of a workforce under strain,” the report stated.
Physical health is also being impacted. About one-third of employees said they’ve lost sleep due to financial concerns, 26% report headaches or migraines, 22% have experienced fatigue or exhaustion, and 16% attribute high blood pressure to financial stress.
Personal relationships are suffering as well. Nineteen percent said financial stress causes tension in their relationships, while 17% report withdrawing socially.
Nudge highlighted financial education as a key part of the solution, saying 83% of employees are actively working to improve their financial literacy. Those with strong financial literacy are 16% less likely to experience stress and 13% less likely to feel anxious. Financially literate individuals also report significantly stronger mental, social and physical health.
U.S. employees are more likely than workers in other regions to rate their financial health as poor to very poor (28%), and they report higher financial anxiety (37%) than the global average of 31%. According to the report, this is a clear signal that more targeted support from employers is urgently needed.
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