Across more than 93,000 benefits literacy responses, we found a 27-point gap in benefits understanding between industries. 

That gap is larger than the differences we see across generations. 

Industry and income are more indicative of benefits understanding than age alone.  

For years, we’ve talked about benefits through a generational lens. Millennials want flexibility. Gen Z wants personalization. Baby Boomers are focused on retirement.  

But that’s only part of the story. 

Why does benefits literacy matter? 

The healthcare system isn’t designed to be easy. Today, the average employee correctly answers only 44% of benefits literacy questions, underscoring confusion around common benefits such as HSAs, FSAs, accident insurance, critical illness insurance, and hospital indemnity plans. 

Confusion doesn’t stay on paper. 

It shows up as delayed care. Missed opportunities to save. Incorrect elections during enrollment. Financial stress. And ultimately, higher costs for both employees and employers. 

The connection between literacy and financial preparedness becomes even clearer when we look at emergency expenses. 

Across Businessolver’s benchmark population, 45% of employees say they would panic if faced with a $6,000 ER bill, while only 15% feel fully prepared to cover the cost. 

Read the report: Businessolver’s 2026 Industry Benchmarks Report looks at the links across income, industry, and literacy. 

Why Gen X faces the most challenges right now 

If there’s one generation benefits leaders should pay closer attention to, it might be Gen X. 

Gen X employees are often balancing competing priorities that stretch both their finances and their attention: 

• Caring for children and aging parents 
• Managing their own growing healthcare needs 
• Navigating prescription medications and chronic conditions 
• Preparing for retirement while still paying today’s bills 
• Leading teams and advancing careers 

In our industry benchmarks, Gen X consistently represents a significant share of the workforce across sectors, often sitting at the intersection of financial responsibility and rising healthcare utilization.  

Not because they don’t care. Because life is complex and benefits are designed to be confusing. 

The real opportunity for employers 

Employees need more guidance, not benefits education. 

Our data shows that lower-income populations prioritize affordability-driven benefits at roughly twice the rate of higher-income employees. Meanwhile, higher earners often need support optimizing complex plan choices and maximizing value from the benefits available to them.  

Different populations face different risks. 

That’s why the future of benefits strategy isn’t communication. 

It’s anticipation, understanding, and empathy. 

The organizations making the biggest impact are moving beyond annual enrollment campaigns and using employee insights to identify confusion, financial stress, and decision-making challenges before they become costly problems.  

Three questions for benefits leaders 

1. Are you segmenting your workforce by income and literacy, not just age? 
2. Which employee populations are most likely to experience financial stress when unexpected healthcare costs arise?
3. How are you identifying confusion before it turns into poor benefits decisions? 

Because the biggest driver of benefits risk may not be generational at all. 

It may be hiding in plain sight: industry, income, and the day-to-day realities of the workforce you’re trying to support.  

This is a million-dollar problem we’re helping orgs like you solve for. Learn more.