workers fall further behind on retirement

• Key insight: See why workers are delaying retirement despite widespread digital tools.
• What’s at stake: Workers at risk of going deeper into debt as capital costs rise.
• Looking ahead: Prepare consultants to meet employees where they are financially and personally.
• Source: AI generated bullets with editorial review

As financial stress mounts, employees’ hope for a comfortable retirement is fading, emphasizing the growing need for employers to help their employees make financial decisions.

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New research from employee benefits consulting firm NFP shows that the share of workers who are off track for retirement rose from 68% in 2025 to 72% in 2026, as increases in essential costs like housing, car payments and health care leave many workers with little room to save for the future.

“The more one-on-one conversations I have with people, the more I’m seeing that the priorities between goals, wants and needs are constantly shifting,” said Steve Jans, NFP’s national wealth management practice leader. “Unfortunately, wants come in and take dollars away from needs, and we end up in debt.”

The NFP report is based on a survey of 1,000 working adults in the US aged 18 and older. financial planning decisions for their household.

In addition to the challenges surrounding retirement readiness, employee awareness and understanding of employer-sponsored resources is also declining, with only 42% of workers aware of available services and 34% knowing how to use them — up from 55% and 44%, respectively, last year.

Read more: Most retirees wish they had saved earlier. Here’s what they regret the most

Additionally, employees are often unclear about the 401(k) benefits available through their employers, with an average of 25% not sure if specific benefits were offered.

Although digital resources, such as AI retirement calculators, have never been more accessible, most people are still looking for one-on-one guidance when it comes to financial planning, Jans said.

“I often say that when my career began 30 years ago, I was in front of the employees, focusing on the retirement plan and why a 401(k) is important,” he said. “But the aha moment for me was standing in front of a group of employees and talking about the importance of saving for retirement. Then, at the end, I was ushered into a conference room. I would sit around all day, and people would come in one by one, but the conversations were about everything but the 401(k) plan. They were asking, ‘How do I pay off a credit card? How do I save more for my children’s education? How do I buy a house?’ So providing that confidential setting has a big impact.”

Gathering employees where they are

When employees engage with financial professionals, the impact is clear, according to the NFP report. 62 percent of survey respondents said that one-on-one meetings with financial professionals are helpful retirement planning resource and consistently rated them more helpful than other available resources. Additionally, 84% said they would consider working with a counselor if given the chance.

Read more: Retirement Change: Why More Companies Back Guaranteed Annuity

Despite this interest, several factors are holding workers back. The perception that workers do not have enough money to invest or earn (24%) remains the main obstacle. Others question the value of working with an advisor (24%), worry they’ll pay fees (20%) or don’t know how financial professionals can help (19%).

“Employer-provided financial advisors play a central role in how the American worker approaches retirement planning,” said Jessica Espinoza, NFP’s national retirement advisory practice leader. “One-on-one guidance is particularly effective in helping employees navigate complex decisions, build trust, and turn intent into action, but too many employees don’t take the necessary first step.”

Read more: Americans say they need $1.2 billion to retire. Many will not come close

That first step, Jans said, is to create a personalized plan and have face-to-face conversations with employees where they are financially and personally.

“You can’t go into the whole world and say, ‘Hey, you need a million dollars to retire.'” You have to go in and meet people. If they are over 20, they have a subset of problems. If they are over 50, they have a subset of problems. We have to meet them where they are and then walk with them.”