New Prudential Benefits & Beyond study finds financial stress, driven by economic uncertainty and rising medical costs, is forcing employees to make difficult trade-offs that affect their mental, physical and financial well-being.
Prudential Financial, Inc. released its annual Benefits & Beyond study, showing how economic uncertainty and rising medical costs are exacerbating financial stress and placing added strain on employees’ mental health.
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The research finds financial stress is no longer just a budget concern for employees. It is increasingly linked to mental strain and health decisions, which can have a ripple effect on workplace engagement. At the same time, the study highlights a significant disconnect between how employers believe they are supporting employees and how employees say they feel. While 75% of employers believe they are doing enough to help manage medical costs, only 46% of employees agree.
Key findings from the first of three installments of Prudential’s 2026 Benefits & Beyond study, “The Future of Work: Building financial resilience in an era of rising costs,” include:
- Financial stress is widespread and deeply felt. 68% of employees experienced at least some financial stress in the past 12 months, with 28% saying it was a significant or overwhelming concern.
- Financial pressure is driving higher mental stress. 45% of employees report experiencing more mental stress over the past year due to financial concerns, with this figure rising to 50% for Gen Z.
- Rising medical costs are intensifying stress and affecting health decisions. Seven in 10 employees (71%) saw at least a 5% increase in medical costs, and nearly one in five (22%) experienced increases of 15% or more.
- Medical costs directly impact mental and emotional well-being. Employees say rising medical expenses significantly affect their financial stress (32%), mental health (22%), and physical health (22%).
“Rising medical costs are putting pressure on employers and employees alike, intensifying financial stress across the workforce,” said Jon Trevisan, vice president and head of distribution at Prudential Group Insurance. “The most successful organizations will likely take a holistic approach that balances managing costs with delivering meaningful benefits that support overall employee financial health.”
The need for a holistic approach is underscored by employee engagement, with only 13% turning to employer resources for help.
“This research points to a critical opportunity for employers,” said Michael Estep, president of Prudential Group Insurance. “Connecting financial, medical and mental health support through clear, ongoing communication and education helps employees better understand their benefits and feel supported when they need it most.”
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