Employees are feeling a little better about their finances.

A recent Financial Finesse report finds that financial stress levels has continued to decline as the economy improves. Only 16% of employees reported high or overwhelming financial stress levels during the first quarter of 2012 compared to 21% in 2011 and 30% in 2010. (See the infographic on the facing page for details.)

While stress levels have improved, the report suggested that doesn't necessarily mean they are more financially prepared. Of those who reported no financial stress 68% reported being unprepared for retirement, a majority had no will or trust and only half indicated they had enough life insurance to adequately protect themselves and their families.