A recent Employee Benefits News article highlighted a concerning trend: Americans’ financial literacy has fallen to its lowest level in a decade. According to the latest TIAA Institute–GFLEC Personal Finance Index, U.S. adults correctly answered just 47% of financial literacy questions in 2026, marking the lowest score since the study began in 2017. The findings suggest that many individuals continue to struggle with core financial concepts related to saving, investing, borrowing, risk management, and retirement planning.
For employers and benefit plan sponsors, this trend raises an important question: Are employees fully equipped to make the most of the benefits available to them?
Financial literacy is often viewed as a personal responsibility, but its impact extends into the workplace. Employees who lack confidence in their financial decisions may be less likely to participate fully in retirement plans, take advantage of available benefits, or plan effectively for long-term financial security. This can ultimately affect financial well-being, employee engagement, and retirement readiness.
The research also revealed notable differences across demographic groups. Women continue to score lower than men across most financial literacy categories, while Gen Z reported the lowest overall scores among all generations surveyed. These findings suggest that broad, one-size-fits-all education efforts may not be enough to meet the needs of today’s workforce.
One of the most significant takeaways from the article is the importance of relevance. As TIAA Institute’s Surya Kolluri noted, financial education is most effective when it aligns with an individual’s stage of life. Information about student loan repayment may resonate with younger employees, while older workers may be more focused on retirement income planning, healthcare expenses, or caregiving costs. When education feels directly applicable to an employee’s current situation, engagement is far more likely to follow.
The article also explored the growing role of artificial intelligence in personal finance. While AI adoption remains relatively low overall, younger generations are increasingly using these tools to gather financial information and manage day-to-day finances. This trend may create new opportunities for employers and benefit providers to deliver educational resources in more personalized and accessible ways.
For benefit plan sponsors, the message is clear: offering strong benefits is only part of the equation. Employees must also understand how to use those benefits effectively. Clear communication, ongoing education, and resources tailored to different workforce segments can help employees make more informed decisions about their financial futures.
How Amalgamated Helps Support Financial Wellness
At Amalgamated Employee Benefits Administrators (Amalgamated), we understand that effective benefit administration goes beyond processing claims and maintaining records. Helping participants understand and maximize their benefits is an important part of supporting overall financial well-being.
Through comprehensive administration services, participant communications, and responsive member support, Amalgamated helps plan sponsors ensure that employees have access to the information they need to make informed decisions. Whether the focus is retirement planning, health benefits, or other employer-sponsored programs, clear communication remains essential to helping participants get the greatest value from their benefits.
Amalgamated’s commitment to serving working people is deeply rooted in our union heritage. For decades, we have partnered with unions, employers, and benefit funds to help protect the financial security of workers and their families. That tradition continues to guide our approach today as we support organizations in meeting the evolving needs of their participants.
To learn more about how Amalgamated can help strengthen benefit administration, participant engagement, and financial wellness education, contact us today.
