In Charlotte, North Carolina, a recent report indicates that 47% of American workers feel financially well, an increase from the previous year's figure of 42%. This data is drawn from Bank of America's 14th annual Workplace Benefits Report titled “The Resurging Workforce," which was conducted in collaboration with the Bank of America Institute. The report also revealed that economic uncertainty has decreased as a concern for employees' long-term retirement savings, dropping from 63% in 2023 to 53%.
However, there remains a growing disparity in financial wellness between genders. The report shows that while 53% of men reported good financial wellness, only 36% of women did the same. Furthermore, inflation continues to be a concern for employees, with 76% stating that their salary or wage growth is not keeping pace with the cost of living. This figure marks an increase from June 2023's statistic of 67%.
Lorna Sabbia, Head of Workplace Benefits at Bank of America, stated: “Despite concerns about the cost of living and plans to limit expenses, more employees are feeling confident about their financial well-being.” She added that there is still work needed to address gender equity as women continue to report significantly lower financial wellness scores than men.
The report drew its conclusions from nationwide surveys involving nearly 1,000 employees and over 800 employers. It examined various aspects including employee financial well-being and retirement preparedness, workplace conditions, benefits trends among others.
The study also highlighted several key insights:
- A majority (62%) of workers are taking steps to improve their financial wellness by limiting current expenses.
- Job loyalty remains high with 70% planning to stay in their current jobs for the next year.
- Pay equity is becoming an important recruitment tool.
- There is a potential disconnect in retirement health care expenses.
Additional findings include:
- A divide exists between working caregivers and employers regarding available support.
- American workers are beginning to prioritize long-term retirement savings.
- Debt assistance is emerging as an attractive benefit.
- Wellness reimbursements are becoming a new benefit trend.
More detailed findings and recommendations for employers can be found in the Bank of America 2024 Workplace Benefits Report.
The survey was conducted by Escalent between November 22, 2023, and January 4, 2024. It involved a national sample of 955 employees who work full-time and participate in 401(k) plans, as well as 804 employers who offer both a 401(k) plan and have sole or shared responsibility for decisions made in the plan.