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

Willingness to trade some salary for stronger benefits reached all-time highs of 39% overall and 53% among Gen Z employees.

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Aflac (AFL) released its 16th annual WorkForces Report, examining employee financial preparedness, workplace stress and the use of artificial intelligence for benefits research. The survey found that 47% of Americans overall and 61% of Gen Z could not cover $1,000 in out-of-pocket medical costs. Although 50% of employees said they fully understood their health insurance, up from 42% in 2025, 32% reported overpaying for healthcare because they misunderstood coverage, versus 24% in 2025.

Workplace stress affected 75% of employees, compared with 72% in 2025. Generative artificial intelligence platforms were used for benefits research by 30% of Americans, including 37% of Gen Z and 40% of millennials. A record-high 95% of Americans felt supplemental health insurance could help protect their financial security. Employers were shifting more financial responsibility to employees through premiums, deductibles and copays.

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The report says 75% of employees believe an insured person diagnosed with cancer will pay less than $2,000 out of pocket in the following year, while a cited study puts average cancer-attributable medical-service costs in the initial phase after diagnosis at $45,063; the figures measure different costs and periods.

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16th annual Aflac WorkForces Report^® shows 37% of Gen Z and 40% of millennials turning to AI to learn more about benefits options

COLUMBUS, Ga., Oct. 13, 2026 /PRNewswire/ -- 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 16^th annual Aflac WorkForces Report^1. 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 risk
Although 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 levels
The 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 advisor
The 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 costly
Costly 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 pressures
Employers 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 proposition
While 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 support
As 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.

ABOUT THE 2026-2027 AFLAC WORKFORCES REPORT^®
The 2026-2027 Aflac WorkForces Report is the 16th annual employee study examining benefits trends and attitudes. Conducted by Kantar on behalf of Aflac, the employer survey took place online between April 20 and May 10, 2026, and the employee survey took place online between April 20 and May 29, 2026. Throughout this report, some percentages may not add up to 100%, and Top 2 Box may appear higher or lower due to rounding. The surveys captured responses from 1,000 employers and 2,001 employees across the United States. Aflac includes Aflac and/or Aflac New York and/or Continental American Insurance Company and/or Continental American Life Insurance Company. For more information, visit Aflac.com/AWR.

ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.² In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force.⁴ The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune's World's Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/español. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."

Media contact: Jon Sullivan, 706.573.7610 or jsullivan@aflac.com

Analyst and investor contact: David A. Young, 706.596.3264 or dyoung@aflac.com

¹ Aflac.com/AWR
² LIMRA 2025 U.S. Supplemental Health Insurance Total Market Report
³ Cancer Care Costs High and Vary Substantially by Cancer Type and Stage; Highest Costs at the End of Life and for Patients With Advanced Disease at Diagnosis, Study Reveals: American Cancer Society and National Cancer Institute
⁴ As of March 31, 2025, Aflac estimates based on company data

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Frequently Asked Questions

What is the Aflac WorkForces Report^®?
The Aflac WorkForces Report is an annual study conducted by Kantar on behalf of Aflac that tracks the state of the American workplace among employees and employers — capturing trends, attitudes, needs and experiences in healthcare and benefits administration.

What are key benefits trends, according to the 2026-2027 Aflac WorkForces Report?

• Benefits remain key differentiator in the competition for talent
• Use of GenAI for benefits research signals engagement, not self-sufficiency
• Rising benefits costs are reshaping workforce investment
• Employers are preserving coverage by shifting more costs to employees
• Employees seek a balance between digital access and human connection
• Demand for supplemental protection is high, but relevance ultimately drives enrollment
• Costly mistakes expose limits of self-reported understanding of healthcare benefits
• Younger employees are asking for more from benefits support
• Delaying care can create lasting health and financial consequences
• Serious illness creates costs employees do not see coming
• Supplemental insurance is associated with a stronger benefits experience

How are stress and burnout impacting the American workforce, according to the 2026-2027 Aflac WorkForces Report?
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%).

How are AI platforms being used to research workplace benefits information, according to the 2026-2027 Aflac WorkForces Report?
GenAI platforms such as ChatGPT, Claude and Gemini are becoming a leading source of information regarding workplace benefits, with 30% of Americans saying they turn to it for research. 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 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.

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SOURCE Aflac

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Aflac's 2026-2027 WorkForces Report find about financial preparedness for medical expenses?

47% of Americans overall and 61% of Gen Z said they could not cover $1,000 in out-of-pocket costs from a medical event. Separately, 45% could not go one month without a paycheck, and 30% had postponed or avoided treatment specifically because of cost.

How was Aflac's 2026-2027 WorkForces Report survey conducted?

Kantar conducted online surveys on behalf of Aflac, collecting responses from 1,000 employers and 2,001 employees across the United States. The employer survey ran from April 20 through May 10, 2026, and the employee survey ran from April 20 through May 29, 2026.

What gaps in digital benefits access did Aflac's 2026-2027 WorkForces Report identify?

One-third of employees lacked online benefits access, and two in five employers did not offer online enrollment. Online benefits management was considered important by 85% of workers and 94% of Gen Z.