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Financial health and mental health are closely connected. Financial strain can contribute to stress and affect areas such as sleep, emotional well-being, and productivity. At the same time, mental health challenges can make it harder for people to manage finances and stay focused at work.
Recent research indicates that these pressures continue to affect today’s workforce. PwC’s 2026 Employee Financial Wellness Survey found that 59% of employees are stressed about their finances, while 49% say their compensation isn’t keeping up with costs. Among Gen Z respondents, 85% said financial stress affects their mental health, and 71% reported reduced productivity.
Financial pressures are not the only source of stress at work. The American Psychological Association’s 2025 Work in America survey found that 54% of U.S. workers said job insecurity has a significant impact on their stress levels. The survey also found that concerns about job security can affect workers’ sleep and relationships, while 46% said their work environment has a negative impact on their mental health.
These overlapping pressures can create challenges for both employees and employers. Financial stress and mental health concerns may affect concentration, motivation, productivity, and engagement. That has led many employers to look at financial well-being and mental health benefits as complementary parts of a broader employee support strategy. Here are some ways organizations can address the connection between financial and mental health and help employees navigate both.
Key Points
• The majority of workers today are worried about their finances.
• Financial stress impacts mental health, which can affect work performance and productivity.
• Financial wellness benefits — like budgeting tools, debt counseling, and employee savings plans — can help workers feel more financially secure.
• Personalized benefits that are relevant to employees’ situations can be especially beneficial.
• Helping employees balance short-term needs with long-term security can also help boost financial and mental health.
Recognize How Financial Well-Being Programs Can Support Mental Health in the Workplace
Financial planning, budgeting tools, debt-management resources, financial coaching, and financial education have become increasingly common workplace benefits. These resources can help employees develop financial skills, manage day-to-day challenges, and work toward longer-term financial goals. Having access to practical financial support may also help employees feel more prepared to handle financial pressures, which can be an important part of overall well-being.
Financial well-being programs can complement, rather than replace, mental health benefits. Employees dealing with financial stress may benefit from resources that address the underlying financial concerns while also having access to mental health support when needed. Employers can consider how these programs work together as part of a broader approach to employee well-being.
Offer a Choice of Flexible Financial-Contribution Programs
Personalized benefits that are relevant to individuals’ situations can be especially helpful in reducing the financial stress employees are feeling right now. Depending on an employee’s personal situation, payroll deduction emergency savings accounts, student loan repayment programs, and/or debt management tools may be effective ways to help workers handle the financial stressors that may be contributing to depression, anxiety, and other mental illness.
This may be a good time to take inventory and see what solutions might be missing from your financial well-being benefits. Questions to consider include:
• Have you set up an automated emergency savings program for employees?
• And if you have, are you sure your employees know it exists and how to participate?
• Do you have a 401(k) matching program for employees paying off student loans?
• Are your education and financial planning efforts aimed at all employees, not just those focused on long-term savings?
Help Employees Keep an Eye on Long-Range Goals, Too
Today’s high cost of living combined with immediate financial concerns like repaying student loans and credit card debt means that many employees are simply not saving enough for the future.
Despite the demand for short-term saving solutions, you may also want to help employees balance short- and long-term goals. Even for younger employees, you don’t want to take the focus completely off retirement and college savings benefits. And for employees who are closer to retirement, building savings is important, too. Helping everyone in your workforce, regardless of where they are, maintain a balance between short-term and long-range goals can be an important step to developing their overall financial well-being and lowering their stress.
The Takeaway
Research shows that financial stress can significantly impact your workforce, leading to mental and physical health issues as well as decreased engagement and productivity. By connecting mental health and financial wellness benefits into customized, accessible packages, you can better support your employees and prepare them for future challenges.
SoFi at Work can help. We provide the benefits platforms and education resources that can enhance financial wellness throughout your workforce.
This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.
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