Employers Optimistic on Retirement Prep, But Workers Voice Doubts

As the construction industry and other sectors face a wave of impending retirements, a new report from PNC Bank highlights a growing disconnect between how employers and employees view retirement readiness.

According to the third annual Financial Wellness in the Workplace Report, released Aug. 27, more than three in four employers believe their workers are financially prepared for retirement. Yet, fewer than half of workers share that confidence.

The report also found differences in retirement confidence across generations. About 56% of Gen Z employees described themselves as “somewhat” or “very confident,” compared to 50% of millennials and boomers and just 43% of Gen X workers.

Financial Stress Still a Drag on Workplaces

Employers remain acutely aware of the impact of money stress on operations. Of the 500+ U.S. employers surveyed, 78% said workers’ financial stress hurts productivity, echoing concerns from previous years.

Employees themselves agree: more than half said their financial health negatively affects their workplace performance, a finding consistent with an August report from The Hartford.

A broader Transamerica Institute survey added to the concern, with two-thirds of workers reporting they do not expect to have enough saved to fully meet their retirement needs.

Employers Offer More Tools — But Gaps Persist

The PNC study found slight progress in access to financial planning benefits. This year, 30% of employees reported having such support, up from 28% in 2024. However, that still leaves a large majority without structured guidance.

“Part of preparing workers for retirement is ensuring they understand both what retirement actually looks like and the reality of their personal financial situation,” an official at the National Institute on Retirement Security previously told HR Dive.

Despite lingering worries, workers reported feeling somewhat less burdened by money stress compared to prior years. In 2025, 68% said they were ‘somewhat’ or ‘very’ stressed about their finances, down from 70% in 2024 and 71% in 2023.

Employers echoed that trend: 69% said they believed their workers faced financial stress in 2025, compared to 78% in 2024 and 71% in 2023.

Signs of Improvement, But Caution Ahead

PNC also found that workers are slowly gaining a stronger sense of control over their money. 62% reported feeling in control of their finances in 2025, up from 56% the year before.

Still, the gap between perception and reality remains significant. While employers may be reassured by gradual improvements in stress levels and access to planning benefits, employees themselves remain cautious about their long-term financial security.

With a large portion of the workforce nearing retirement age — particularly in industries like construction — the report suggests employers will need to go further to bridge the confidence gap and provide meaningful retirement readiness support.

Originally reported by Ginger Christ in Construction Dive.