Burnout, misinformation and financial vulnerability driving critical choices across American workforce, with Gen Z at the epicenter

Americans in the workplace are feeling more confident about their personal finances and benefits than they did a year ago, yet beneath those encouraging gains lies a more complex reality: they are increasingly burned out, more financially vulnerable and far more unprepared to weather the cost of a serious health event, according to the 16th annual Aflac WorkForces Report1. The report, released today by Aflac Incorporated, the leading provider of supplemental health insurance products in the U.S.2, also shows that AI is quickly becoming a top research tool for younger Americans seeking information about workplace benefits. The report tracks the state of the American workplace among employees and employers — capturing trends, attitudes, needs and experiences in healthcare and benefits administration.Confidence masks healthcare unpreparedness and exposes financial riskAlthough 50% of employees say they fully understand their health insurance coverage (up from 42% in 2025) and 66% believe their benefits would protect them well during a serious illness, many American workers are one paycheck away from financial hardship. Nearly half (47%) of Americans overall — and 61% of Gen Z — say they could not cover $1,000 in out-of-pocket costs from a medical event. Forty-five percent couldn't go for one month without a paycheck, and concerns about medical costs remain widespread. Consequently, Americans have made risky tradeoffs: nearly half (49%) have delayed medical care, and 30% have postponed or avoided treatment specifically due to cost.Furthermore, employees may be misinformed and financially exposed when it comes to the cost of a serious illness. Three-quarters (75%) — significantly higher for U.S. Hispanics (88%), Asian Americans (88%) and African Americans (85%) — believe an insured American diagnosed with cancer would pay less than $2,000 out of pocket during the year following diagnosis. A recent study by the American Cancer Society and National Cancer Institute3 found that overall cancer-attributable medical service costs are an average $45,063 during the initial phase after diagnosis.Pervasive workplace stress reaches alarming levelsThe report reveals an all-time high 75% of employees experience workplace stress, compared to 72% in 2025. Among nearly 2 out of 5 (39%) of all employees who say they are experiencing burnout in their current roles, 83% reported having experienced at least moderate burnout at work. The highest rate of at least moderate burnout of all generations is Gen X (89%), compared to 84% of millennials and 73% of Gen Z. Personal mental health has had a negative influence on work and ability to get work done over the past year for Gen Z (37%) and millennials (33%), compared to Gen X (24%) and baby boomers (5%)."The convergence of rising burnout, financial vulnerability and misconceptions about healthcare costs is creating risks for both workforce well-being and organizational resilience," said Aflac Incorporated Chief Human Resources Officer and Chief Administrative Officer Matthew Owenby. "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."AI is emerging as a benefits advisorThe report shows GenAI platforms such as ChatGPT, Claude and Gemini are becoming a source of information regarding workplace benefits, with 30% of Americans saying they turn to it for research. In fact, AI is becoming more of a tool with Gen Z (37%) and millennials (40%), compared to Gen X (21%) and baby boomers (4%). However, 58% of employees also say they use their company's benefits portal or their benefits provider's website as a key source of information, indicating that while AI is a growing influence, employees still rely on information closest to the source. Thirty-three percent of employees also seek counsel from a benefits advisor to ensure they are maximizing their options.Misunderstanding benefits can be costlyCostly mistakes are becoming more common as nearly one-third (32%) of employees say they have overpaid for healthcare — significantly higher for U.S. Hispanics (52%) — because they misunderstood what their insurance would cover, a sharp increase from 24% in 2025. Even among employees who claim to fully understand their policies, 35% report making costly coverage mistakes.Competitive benefits are a business imperative despite financial pressuresEmployers are increasingly viewing benefits as a strategic tool for satisfaction, productivity and talent attraction and retention — despite economic pressures and rising healthcare costs. At the same time, a record high 95% of Americans feel supplemental health insurance can help to protect their financial security. Employers are nearly evenly divided on what they consider to be a primary benefits objective: improving employee satisfaction and engagement (27%), creating a healthy and productive workforce (27%), supporting competitiveness (23%) or attracting and retaining talent (23%). For many employers, preserving comprehensive benefits offerings requires difficult tradeoffs, as they are increasingly balancing what they spend on benefits against other workforce investments — and shifting more financial responsibility to employees through premiums (35%), deductibles (32%) and copays (26%).Gen Z is redefining the employee value propositionWhile 49% of all American employees prioritize salary when looking for a new job, only 30% of Gen Z do so. Instead, younger workers emphasize fulfilling work (28% vs. 23% overall), career growth and development (22% vs. 17% overall) and workplace values that match their own (21% vs. 14% overall). Compensation is becoming a less effective retention strategy for younger talent, and benefits importance is rising. Employees' willingness to trade some salary for stronger benefits reached 39% overall and climbed to 53% among Gen Z — both all-time highs. In the past 12 months, Gen Z has contacted Human Resources about healthcare benefits at least once (92% vs. 70% overall), suggesting that better education and digital access could drive engagement.The winning benefits experience combines digital tools and human supportAs employees increasingly seek self-service benefits experiences, demand for digital access continues to grow. Eighty-five percent of workers — and 94% of Gen Z — say online benefits management is important, yet significant access gaps remain, with one-third of employees lacking online benefits access and two in five employers not offering online enrollment. One-third of employees now use AI to research benefits information, yet human advisor support resonates — mostly with Gen Z (90%) reporting its importance compared to 41% of baby boomers."Benefits remain one of the most important investments employers make, but the goalposts are shifting," said Owenby. "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."The 2026-2027 Aflac WorkForces Report highlights the vital role of comprehensive benefits in employees' well-being, satisfaction, resilience and retention. Additional survey findings, trends and more can be found at Aflac.com/AWR.

Burnout, misinformation and financial vulnerability driving critical choices across American workforce, with Gen Z at the epicenter

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