Retirement Benefits Valued by More Workers Than Last Year

The 2024 Workplace Wellness Survey from the Employee Benefit Research Institute revealed that a greater percentage of employees than last year value strong retirement plans offered by their workplaces.

When workers were asked to check multiple options that contribute most to their financial security, 62% noted retirement plans, up from 56% in 2023. That boost in focus on retirement plans appeared in other areas of the survey as well.

Retirement savings plans were matched by health insurance, with 62% who reported that it contributed a lot to their sense of financial security, up slightly from 59% last year. The third most valued benefit was paid time off or leave, at 58% of respondents, the same as in 2023.

Health Insurance, Retirement Plans Influence Job Retention

When it comes to job retention, health insurance continues to play a crucial role for workers, with 72% of employees reporting it as the most important benefit in deciding whether to stay at their current job or seek new opportunities. Retirement plans ranked second (55%), followed by paid sick and vacation time, which showed significant growth in importance at 47%, up from 32% in 2022.

This increased demand for health-related and retirement benefits was matched by a wide availability of these perks: 83% of workers report being offered health insurance by their employer, and 79% have access to a retirement savings plan. Employee participation in these benefits has also grown; retirement plan enrollment rose to 85% from 79% last year, with health and dental insurance following closely behind.

Concerns About Benefit Cuts and Financial Security

Despite the broad availability of benefits, workers remain concerned about their future financial security. Survey results found 33% reported being very concerned about the future, and 36% were somewhat concerned that employers may reduce or eliminate retirement benefits. Among respondents, 32% reported that their employer has already implemented budget cuts in the past year, adding to the uncertainty about the future of workplace financial support.

Many respondents cited retirement savings as their primary source of financial stress, with 48% of workers identifying it as their greatest financial challenge. Although fewer employees now rely solely on their retirement plans as an emergency fund—50% compared with 55% last year—building a robust financial safety net remains a priority.

Courtenay Shipley, president and chief planologist of Retirement Planology Inc., which was not involved in the survey, notes that these concerns could be attributable to the volatile economic environment in mid-2024. The survey was conducted from July 22 through August 18.

“My first reaction was to determine when this survey was taken and see if outside factors could be contributing to this answer; I think yes, [they can],” Shipley says. “Consumer sentiment fell in 2024 from March to July. It turned a corner in August, and sentiment has risen since then. This survey was conducted during July amongst a number of noisy headlines.”

Shipley points to research conducted during the COVID-19 pandemic about the connection between psychological factors and information processing, financial literacy and the emotional aspects of financial well-being. She suggests that “feeling bad” about the economy could be linked to a jaded perception of employer stability and, thus, whether benefits might be cut.

“Financial advisers in the workplace continue to play a critical education role in helping employees better understand the economy,” she says. “In a world where we no longer get our news from the same few networks, I believe it’s critical to be the source that helps put the numbers in perspective for employees.”

Workers’ Preferences for Benefits Allocation

The survey also asked employees to consider how they would allocate a hypothetical $600 per month offered by their employer to be split among various benefit accounts. Most respondents indicated they would allocate the largest share of this money to a retirement savings account.

Understanding employer-offered benefits remains essential. In 2024, 84% of employees said they understand their retirement benefits at least somewhat well, similar to the 85% who reported that level of understanding last year.

This year’s study surveyed a national sample of 1,005 full-time and part-time American workers aged 21 through 64, with data gathered in 20-minute online interviews conducted from July 22 through August 18. The study also included an oversample of 500 military veteran workers, with findings from this subgroup expected to be published later this year.