Recent findings reveal a troubling decline in financial inclusion initiatives among U.S. employers over the past year, particularly among larger businesses. According to Principal Financial Group's annual report, medium-sized enterprises (those with 101-500 employees) experienced a significant drop of 29.4 points, landing at a score of 36.3. In contrast, smaller enterprises improved their financial inclusivity score from negative 20.2 to negative 5.6, indicating a narrowing gap between small and large firms, which decreased from 62 points in 2023 to 43.1 points in 2024 [21347ab7].
In the context of global rankings, the U.S. has fallen to 7th place in financial inclusion, with employer support dropping from 12th to 20th. The U.S. scored 64 for financial guidance, 64.2 for pension contributions, 71 for insurance schemes, and a lower score of 53.2 for pay initiatives. Singapore continues to lead the rankings, achieving impressive scores of 97.9 for financial guidance and 85.6 for public pensions [21347ab7].
The decline in financial inclusion initiatives is particularly pronounced among larger enterprises, which saw an 18.6-point drop to a score of 54.0. Chris Littlefield, a key figure in the financial sector, emphasized the necessity for financial professionals to assist smaller employers in structuring their benefits effectively. This highlights the ongoing challenges faced by larger businesses in maintaining robust financial inclusion strategies [21347ab7].
As the UK also grapples with its own decline in financial inclusion, now ranking 11th globally, the need for comprehensive support systems and innovative financial solutions is becoming increasingly critical. The UK's fall from 7th to 11th place in the Global Financial Inclusion Index reflects similar trends seen in the U.S., where government support and employment-related financial services are lagging [3dce4be4].
Both countries must address these gaps to enhance their standings in future financial inclusion rankings, as the competitive landscape continues to evolve with countries like Singapore setting high benchmarks for financial inclusivity and support [3dce4be4].