This article first appeared in BenefitsPro in July 2025, written by Ann Clifford.
According to The Hartford’s 2025 Future of Benefits Study, 51% of U.S. workers now live paycheck to paycheck, and nearly three in four (72%) report experiencing financial stress.1
While employee benefits offer valuable financial protection, the study reveals that many employees do not take full advantage, which should concern employers and the benefits advisors and consultants who work with them.
“Benefits selection is very personal, especially for employees living paycheck to paycheck,” says Laura Marzi, head of marketing for Employee Benefits at The Hartford. “There’s a huge opportunity for employers and brokers to play a role, but it’s challenging when employees are focused on meeting their mortgage, rent or car payments.”
This disconnect between the available support and the employee mindset creates three strategic opportunities for benefits advisors to help their clients. Brokers can address the financial stress that employees sometimes feel, optimize artificial intelligence (AI) technologies to assist and boost benefits understanding and utilization.
Connecting Financial Realities to Benefits Protection
Workers living with financial stress approach benefits enrollment decisions with day-to-day pressures top of mind, often prioritizing perceived immediate value.
“It’s sometimes easier for employees to put whatever funds they may have available toward workplace benefits like pet insurance or legal services, because the value feels more immediate," Marzi says. "But the reality is that there’s an opportunity to make sure there’s clear understanding around bedrock products like life and disability insurance that can help protect one’s long-term financial future."
Benefits advisors can help employers highlight the stability and peace of mind that comes from personalized benefits decisions. By helping employees understand the financial security their paycheck provides – and how their financial situation might be affected if a serious illness or long-term disability comes into play – benefit options such as life, disability and supplemental health insurance become more tangible.
Optimizing Technology and Employee Trust
The financial stress that U.S. workers are experiencing is compounded by a broader technology trust gap. The Hartford’s study found that while 72% of employers feel more optimistic about AI in the workplace, only 29% of employees share that confidence.1
This employee skepticism extends to benefits decisions. Workers prefer human interaction over digital technology when learning about their benefits, filing a claim and requesting a leave of absence.1
“Employers are more optimistic, because they see how technology and AI can create efficiencies and offer more personalized benefits recommendations,” Marzi says. “Brokers, meanwhile, play a key role in helping employers choose the best technology solutions for their needs, be more transparent about when and why it’s used and identify the right human-in-the-loop moments for employees.”
Marzi says small and midsize businesses are receptive to advisor advice on technology that streamlines HR operations and enables more voluntary benefits.
Building Benefits Understanding and Use
Even when employers address financial stress and balance technology with human support, a fundamental challenge remains: employees still struggle to understand and fully utilize their benefits.
The Hartford’s study found that 69% of respondents say educating workers about benefits is a challenge, with most looking for resources to help build employee understanding.1 This presents a significant opportunity for benefits advisors.
“Brokers play a pivotal role,” Marzi says. “Focusing on simplicity and continual communication around benefits selection is essential. But beyond that, recognize that every employee comes to the table with different needs that must be addressed. Brokers need to guide recommendations for benefits, decision support and year-round education. Brokers should also partner with carriers to ensure these needs are met.”
With rising financial stress and economic uncertainty, the stakes for meaningful benefits engagement have never been higher. By helping employers connect benefits to real-life financial protection, balance technology with human support and prioritize year-round education, advisors can ensure benefits truly deliver on their promise of financial security.
Ann Clifford is a freelance writer who translates her background in financial services marketing into specialized content focused on employee benefits and small business topics.
