75% Of US Employees Report Workplace Stress: Aflac Report

Despite growing confidence in their health insurance coverage and employee benefits, US workers remain financially vulnerable to medical emergencies, while workplace stress and burnout continue to rise, according to the latest Aflac report.

The Aflac WorkForces Report found that 75% of employees experience workplace stress, up from 72% in 2025. At the same time, 47% of Americans said they could not cover $1,000 in out-of-pocket medical expenses, rising to 61% among Gen Z workers.

The findings reveal a gap between employees’ perceptions of their financial protection and their ability to withstand unexpected healthcare costs. Although 50% of employees said they fully understood their health insurance coverage, compared with 42% in 2025, nearly half of Americans said they had delayed medical care, and 30% had postponed or avoided treatment specifically because of the cost.

The financial pressure extends beyond healthcare. The report found that 45% of Americans could not go without a paycheck for 1 month, leaving many vulnerable to income disruptions alongside unexpected medical bills.

Misconceptions about healthcare expenses may compound that exposure. The report found that 75% of employees believed an insured American diagnosed with cancer would pay less than $2,000 out of pocket during the year following diagnosis. However, a study by the American Cancer Society and the National Cancer Institute found that average medical service costs attributable to cancer reached $45,063 during the initial phase following diagnosis.

Workplace stress is also taking a toll on employees. Nearly 2 in 5 workers, or 39%, said they were experiencing burnout in their current roles. Among employees reporting burnout, 83% said they had experienced at least moderate burnout at work.

Gen X reported the highest rate of at least moderate burnout at 89%, followed by millennials at 84% and Gen Z at 73%. Mental health also affected employees’ work and ability to complete tasks over the previous year, with 37% of Gen Z and 33% of millennials reporting a negative influence, compared with 24% of Gen X and 5% of baby boomers.

“The convergence of rising burnout, financial vulnerability and misconceptions about healthcare costs is creating risks for both workforce well-being and organizational resilience,” said Matthew Owenby, CHRO and CAO, Aflac Incorporated.

“For employers, the cost of inaction could be significant — impacting engagement, productivity and retention. Employers can make a meaningful difference by helping their teams better understand their benefits and provide protection that supports their physical, mental and financial well-being,” he added.

Findings indicate that generative AI tools are becoming a source of workplace benefits information. Overall, 30% of Americans said they use platforms such as ChatGPT, Claude and Gemini to research benefits. Adoption was higher among millennials at 40% and Gen Z at 37%, compared with 21% of Gen X and 4% of baby boomers.

However, employees continue to rely on established information channels. Some 58% said they use their employer’s benefits portal or their benefits provider’s website as a key source of information, while 33% seek guidance from a benefits adviser to make the most of their coverage.

Despite growing confidence in their policies, employees are increasingly making costly mistakes. Nearly 1 in 3 employees, or 32%, said they had overpaid for healthcare because they misunderstood what their insurance covered, up from 24% in 2025. The figure rose to 52% among US Hispanic employees. Even among those who said they fully understood their policies, 35% reported making costly coverage mistakes.

Employers, meanwhile, are balancing the need to offer competitive benefits against rising healthcare costs and other workforce investments. The report found that 95% of Americans believed supplemental health insurance could help protect their financial security.

Employers were divided on their primary benefits objectives: 27% prioritised employee satisfaction and engagement, another 27% focused on building a healthy and productive workforce, 23% cited competitiveness, and 23% identified attracting and retaining talent.

To manage costs, employers are increasingly shifting financial responsibility to workers through higher premiums, deductibles and copayments. The report found that 35% of employers were shifting costs through premiums, 32% through deductibles and 26% through copayments.

The findings also point to a shift in what younger workers expect from employers. While 49% of employees overall prioritised salary when looking for a new job, the proportion fell to 30% among Gen Z. Younger workers placed greater emphasis on fulfilling work, career development and alignment between workplace values and their own.

Some 28% of Gen Z prioritised fulfilling work, compared with 23% of employees overall. Career growth and development mattered to 22% of Gen Z, against 17% overall, while 21% valued alignment with workplace values, compared with 14% of all employees.

Willingness to exchange some salary for better benefits also reached a record high: 39% among employees overall and 53% among Gen Z. In the previous 12 months, 92% of Gen Z employees had contacted HR about healthcare benefits at least once, compared with 70% of workers overall.

Digital access is becoming another important part of the benefits experience. The report found that 85% of employees, including 94% of Gen Z, considered online benefits management important. Yet 1 in 3 employees lacked online access to benefits, while 2 in 5 employers did not offer online enrolment.

Human guidance remains relevant alongside digital tools. While 1 in 3 employees used AI to research benefits information, 90% of Gen Z said support from a human adviser was important, compared with 41% of baby boomers.

“Benefits remain one of the most important investments employers make, but the goalposts are shifting,” Owenby said. “Employees need more than coverage. They need financial protection that reflects real-world risks, information they can understand and guidance they can trust. The organizations that deliver all three will be better positioned to provide support, build resilience and strengthen their workforces.”