A woman sits at kitchen table with laptop, pen and paper

Inflation and recession concerns are directly impacting employees

Aug 4, 2022
Empower Institute

People nationwide say they are making lifestyle and financial changes to deal with skyrocketing costs

Empower’s Wealth and Wellness Index Mid-Year Survey reveals sobering details about how inflation is impacting Americans’ financial attitudes and behaviors: 85% say they are worried about inflation, 69% say their income is not keeping pace and 56% believe their standard of living is declining. The survey of 2,000 Americans helps identify ways employers can support employees during this period of workplace culture and economic change.

Inflation and recessionary fears are forcing Americans to make lifestyle adjustments

Due to skyrocketing food, gas, home and car prices, 86% of Americans have taken some type of action to try and tame inflation’s impact on their wallets. And although the United States was not in a recession when the study was conducted, 73% reported feeling anxious about how they would cope financially should one occur.

Top actions taken to prepare for a potential recession

Top actions taken to prepare for a potential recession

Note: Due to rounding, some categories may not add up to 100%.

Many Americans say they feel financially unhealthy

Not only has inflation pummeled Americans’ pocketbooks, but it has them feeling financially unfit. A whopping 66% say they are worried about their financial health. Only 36% said they feel very financially healthy, while 21% feel very unhealthy. And more than half (56%) said their standard of living is declining. They also say the resulting anxiety has impacted many aspects of their daily lives.

Americans say their worry has impacted…
(Includes respondents reporting some impact and a lot of impact)

Americans say their worry has impacted…

Americans are looking for new ways to make ends meet

Americans are getting creative when it comes to the financial ramifications of inflation and recessionary fears. They are also taking action to upgrade their quality of life and their satisfaction with work situations. For example:

  • More than 40% of Americans have asked or plan to ask for a raise at work.
  • Many workers (39%) have or plan to change jobs or seek a new career.
  • Overall, 30% of Americans say they have concerns about the financial impact of returning to the office.
  • Many younger employees are picking up stakes, with 31% having or planning to relocate to a new city, state or country.

To learn more about the research findings and the impact the current environment is having on Americans’ financial health, download the research brief.

Navigating Change research brief - download

 

RO2297990-0822

Latest Empower Institute Articles

Carefully consider the investment option’s objectives, risks, fees and expenses. Contact Empower for a prospectus, summary prospectus for SEC-registered products or disclosure document for unregistered products, if available, containing this information. Read each carefully before investing.

Securities, when presented, are offered and/or distributed by Empower Financial Services, Inc., Member FINRA/SIPC. EFSI is an affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and registered investment adviser, Empower Advisory Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice.  

IMPORTANT: The projections, or other information generated on the website by the investment analysis tool regarding the likelihood of various investment outcomes, are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. The results may vary with each use and over time.

Investing involves risk, including possible loss of principal.

Insurance products are issues by or offered through Empower Annuity Insurance Company of America, Corporate Headquarters: Greenwood Village, CO; or in New York, by Empower Life & Annuity Insurance Company of New York, Home Office: New York, NY. 

The managed account service is part of the Empower Advisory Services suite of services offered by Empower Advisory Group, LLC, a registered investment adviser.

The Empower Institute is a research group within Empower.

“EMPOWER” and all associated logos, and product names are trademarks of Empower Annuity Insurance Company of America.

All features may not currently be available and are subject to change without notice. ©2022 Empower Retirement, LLC. All rights reserved.

Unless otherwise noted: Not a Deposit | Not FDIC Insured | Not Bank Guaranteed | Funds May Lose Value | Not Insured by Any Federal Government Agency.