Only 44% Get It Right: Why Benefits Literacy Matters More Than Ever 

April was financial literacy month—and we took the opportunity to take a closer look at what many American workers are facing within their tightening finances: Financial stress.  

According to PWC, when we’re financially stressed out, our productivity and mental health suffer: 

• Financially stressed employees are 5X more distracted at work 
• 57% of employees say finances are a top stressor 
• 74% say finances negatively impact their mental health 

But to address financial stress, we have to get to the root cause. Low financial literacy plays a big role in our short- and long-term needs. Not understanding what they have access to or how to use it is a big stressor. A critical part of that low financial literacy is simply not having access to the right support from the get-go. 

Financial literacy isn’t about budget hacking or savings “maxxing.” It’s about ensuring employees have the clarity, confidence, and tools to make informed financial decisions—today and over the long term—and understand how their benefits fit into the bigger picture. 

Let’s break it down. 

Benefits literacy is closely tied to financial readiness 

93,000+ Benefits Literacy Survey responses in the Businessolver platform make a clear connection between what employees understand and how financially secure they feel.  

Here’s what we asked—and the average “correct answer” scores 

When employees don’t fully understand the benefits designed to protect them financially, the result isn’t just confusion—it’s missed opportunities, avoidable out‑of‑pocket costs, and added stress when the unexpected happens. 

When HR has the tools to understand what barriers to benefits look like for their employees, they can be more proactive. 

The poll results are in: Retirement savings is top of mind.  

Not long ago, we asked our audience which financial benefits they use most. The top answer? 401(k) matching, at 46%. 

Retirement savings clearly matter—but they’re only part of the financial wellness equation. 

Other benefits play a critical role in helping employees build stability and resilience, including: 

• HSAs and investment accounts can help employees build multiple nest eggs and grow their wealth over time—and access it without the wait. 
• Debt management resources like financial planning and advisors make it easier for employees to tap into resources and strategies to manage their cashflow and borrowing needs. 
• Caregiving benefits ease the financial burden for those with children or older relatives that need regular care outside the home. 
• Tuition reimbursement helps set students up for future success by reducing the amount of debt they need to take on. 

Pretax benefits in particular do more than help cover healthcare premiums. When designed and communicated effectively, they can support both short‑term flexibility and long‑term financial health. 

Learn more about how MyChoice® Accounts is helping organizations set a new standard for financial wellness. 

But what about financial wellness for today?  

Our latest Benefits Insights Report shows that financial pressure is widespread—but some groups are feeling it more acutely. 

Gen Z, Gen X, and women stand out as facing elevated financial risk and anxiety: 

• 53% of Gen Z (the highest of all generations surveyed) said they would feel panicked about a $6,000 ER bill 
• 40% of Gen X would incur debt or pull from a retirement fund to pay an unexpected medical bill 
• 71% of women aren’t able to consistently save money each month or at all 

Our top takeaway? Financial wellness isn’t one‑size‑fits‑all—having diverse benefits and resources in play makes a huge difference. 

Our Pinnacle Partners help our clients meet their employees where they are with tools and resources designed to reduce financial stress before it escalates. Meet two of our partners tackling financial stress head-on:  

Our partners at Securian are talking about why financial security can support more than just employee bank accounts.  

LegalShield helps protect you and your family by making access to legal services affordable and easy to use, so you can get the legal support you need without worrying about unexpected costs.