Rising daily expenses in the US are prompting many families to reassess their spending habits, from everyday essentials like groceries to long-term financial goals. For some individuals, even prioritizing their health and wellbeing has become a luxury they can no longer afford, potentially jeopardizing their financial stability.
A recent survey conducted by Willis Towers Watson found that financial security among U.S. employees has reached its lowest level in seven years, with only 36% of respondents reporting a sense of financial stability in 2026, a significant decline from 46% previously recorded. Despite improvements in their physical and social well-being, employees' perceptions of their economic situation have deteriorated, highlighting growing concerns about financial security.
A growing number of employees are postponing or canceling medical and dental appointments due to financial concerns, with nearly a third of workers across all age groups citing cost as the reason, despite having medical insurance, according to recent research by WTW.
According to Courtney Stubblefield, head of health and benefits at WTW, individuals are hindered by the substantial cost of healthcare, coupled with high deductibles and out-of-pocket expenses, which are increasingly becoming barriers to receiving necessary medical attention.
A significant financial insecurity gap exists among employees in different age groups, with a notable disparity observed among those aged 40 to 49. This demographic reported a relatively low level of financial security, with only 30% stating they felt financially stable, a stark contrast to the 50% of employees aged 60 or older who shared this sentiment. Furthermore, the age group 40 to 49 exhibited the highest proportion of individuals who had delayed or foregone medical care due to economic constraints, with over 40% of respondents acknowledging this behavior.
Many workers in this stage face significant economic burdens as they concurrently cover the expenses of raising their children and supporting their elderly parents. This demographic, often referred to as the sandwich generation, is characterized by substantial financial responsibilities stemming from caring for two generations simultaneously.
Individuals with children and family medical coverage tend to incur higher costs due to the associated expenses.
A significant proportion of employees, approximately two out of three, anticipate facing a more challenging economic situation in retirement compared to their parents, with rising healthcare costs being a major obstacle to saving for their future financial security.
A recent study conducted by Prudential Financial revealed that a significant majority of retirees with substantial investable assets, exceeding $500,000, express hesitation in allocating funds for leisure pursuits. Key factors contributing to this reluctance include rising inflation, increasing cost of living, and mounting medical expenses.
According to U.S. Federal Reserve data, a notable disparity in household wealth exists across age groups. By 2025, households led by individuals aged 75 or older are projected to have an average net worth of $504,900, whereas those headed by individuals under the age of 35 are expected to have an average net worth of $33,000.
According to recent data, households in the 65- to 74-year-old age group experienced a significant increase in average net worth over the period from 2022 to 2025, with a notable 37% growth. Conversely, the average net worth of households with children under the age of 35 declined by approximately 23% during the same timeframe.
Rising costs of living, particularly medical services, have reached alarming levels for millions of U.S. households, hindering their ability to afford essential healthcare and subsequently impacting long-term financial goals, including retirement savings and financial independence.
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