Bank of America’s 2024 Workplace Benefits Report “The Resurging Workforce” provides some good news: 47% of American workers feel financially well, up 5% from last year. Also, fewer people are concerned that economic uncertainty will affect their retirement savings (53%, down 10% from last year). Unfortunately, the study also found the gender gap of financial wellness was increasing, with 53% of men reporting good financial wellness versus 36% of women.
“Despite concerns about the cost of living and plans to limit expenses, more employees are feeling confident about their financial well-being,” said Lorna Sabbia, Head of Workplace Benefits at Bank of America. “However, there is still work to be done to address gender equity, as women continue to report much lower financial wellness scores than men.”
Some key insights from the report include:
- Employees are taking proactive steps to improve their financial wellness: These include cutting expenses (62%), paying down debt (43%), and paying into emergency funds (41%).
- 70% of employees plan to keep their jobs for the next year: Two-thirds (66%) cite a good work/life balance as their top reason to stay. Half of those looking to leaving cite compensation (52%), followed by career growth (45%).
- Pay equity helps attract top talent, but less than half of employers are doing it: Only 44% of employers offer pay equity initiatives. But those who do report a 78% increase in attracting top talent versus 50% for those without initiatives.
- People greatly underestimate the cost of healthcare in retirement: Only 7% of employees think their annual healthcare expenses in retirement could total $10,000 or less. The reality is that current research estimates a retired 65-year-old couple might need more than $350,000 a year to cover expenses.
Other findings from the report include:
- The caregiver-employer gap: More than 50% of the workers surveyed self-identified as caregivers, but 61% of them were not aware their employers offered caregiver benefits (81% of employers offered benefits). Half of those caregivers were not comfortable telling their employers about their situation.
- Employers are starting to help with employee debt: Employers look at debt assistance as a positive benefit, and 37% of employers currently offer a form of student debt repayment assistance.
- Workers are prioritizing retirement savings: The slow upward trend continues, as 33% of workers said retirement savings was their top financial goal, which was up 2% from last year.
- Wellness benefits are heating up: Employers are seeing Lifestyle Spending Accounts (LSAs) to be an attractive benefit. LSAs are plans that reimburse employees for health- and wellness-related items such as gym memberships. Currently, only 29% of employers offer wellness benefits, even though 48% of employees want them.
Bank of America’s 2024 Workplace Benefits Report “The Resurging Workforce” was based on nationwide surveys of nearly 1,000 employees across more than 800 employers. It analyzed employee financial well-being and retirement preparedness, the state of the workplace, and more.
Click here to access Bank of America’s 2024 Workplace Benefits Report “The Resurging Workforce.”
