Cost-of-living expenses and ongoing inflation are prompting more Americans to look to their employers for help with managing their finances.
A new joint report from the Bank of America (BOA) and Bank of America Institute discovered that 26 percent of the U.S. workforce is looking for assistance when it comes to managing household debt, emergency financing, and overall financial wellness. This represents a significant jump from just 13 percent reported in 2023.
More than 36 percent of employees surveyed are seeking help with retirement education and planning, and 33 percent want more information on generating income in retirement as well as developing good financial skills.
“Employers should consider additional resources to support their workforce in ways that bolster their long-term goals while also helping them tackle short-term challenges.”
The findings also indicated that workplace benefits are now playing an important role in attracting and retaining talent. Almost 25 percent of employees noted they recently left or have considered leaving their place of employment due to lack of adequate workplace benefits, including financial wellness. That number is up 15 percent from 2023.
“Some companies are evolving their financial benefits to keep up with the needs of their employees, while others remain focused on traditional benefits alone—such as retirement plans and health insurance,” Kai Walker, head of retirement research and insights at Bank of America, added in the statement.
“Financial wellness programs, equity awards, debt assistance, caregiver support can all help attract and retain top talent.”
More than 50 percent of employees surveyed admitted to feeling overwhelmed by the idea of prioritizing all of their financial needs at once. Some are often living paycheck to paycheck.
Almost 45 percent revealed they have little or no emergency savings because of their focus on repaying debt. A staggering 85 percent of employees are carrying some type of personal debt, such as credit card payments, mortgages, or other loans.
While only one in three employers currently offer credit-counseling services, more reported they are planning to do so in the near future.
Despite their current debt, two in three employees said they feel confident that they’re on track for a healthy financial future during retirement. More than half, though, wish they had started saving for retirement at a younger age.
Demographically, men reported a better sense of financial wellness than women, at 58 percent compared to 41 percent. Gen Z and millennials scored higher in this category than last year, with 48 percent feeling retirement-ready. More than 72 percent of baby boomers reacted positively to their retirement savings.
