Retirement insecurity looms as a 'crisis,' driving mental health concerns

The challenge is not purely financial. Stress around money is one of the biggest drivers of poor mental health, and those who are already struggling financially or mentally are less likely to have access to a retirement plan at work, the report said. Improving long-term financial security can have a major impact on peace of mind, focus and stability. As such, retirement benefits should be considered wellness benefits, said Dayforce.

Employees also valued financial literacy and coaching, with 82% saying training in this area would improve their mental health and wellbeing. The percentage was even higher among Black and Latino workers.

Emergency savings programs that allow employees to avoid tapping into retirement savings or taking on high-interest debt when faced with unexpected expenses, were also appealing, the report found. Ninety-four percent of women indicated an in-plan or sidecar account that allows for emergency savings as part of their employee-provided retirement plan would be helpful to their mental health.

“Employees who feel financially secure are more likely to stay with their employer, recommend their workplace to others, and report feeling valued,” said Dayforce. “Among workers under 30, nearly two-thirds said benefits like emergency savings accounts would improve their experience at work or their opinion of their employer. For workers dealing with mental health challenges, 62% said these benefits would improve their work experience.”