Money
Amid economic uncertainty, including higher costs of living and persistent inflation, many employees say they want advice about long-term savings and managing personal finances, according to Bank of America’s 15th Workplace Benefits Report.
Compared with two years ago, twice as many American workers are looking to their employer for guidance and resources. This year, 26% of survey respondents said they want help in areas such as building emergency savings, paying down debt and overall financial wellness, compared with 13% in 2023. Employees are also interested in resources and advice on retirement planning, learning how to generate income during retirement, and developing good financial skills and habits.
The report found that more than two-thirds of employees remain optimistic about their financial future over the next three years and that they are confident they are on track to achieve their retirement lifestyle goals. The same percentage say saving for retirement is a top financial goal, but they are struggling to pay down debt and build emergency savings. Only about one-third of employees are saving for health care expenses during retirement despite the fact that these costs continue to surge, said the report.
Saving for unexpected expenses is the second-most important goal for employees, behind saving for retirement. Half of employees said they have not been able to reach their emergency savings goal, with a greater percentage of women falling below their goals than men. Nearly half of employees say they lack emergency savings due to a focus on repaying debt. Eighty-five percent of employees carry some form of personal debt, with 58% carrying credit card debt. Many employees report that debt causes them stress and affects their ability to focus at work. Less than one-third of companies offer credit counseling or debt assistance, although the survey revealed a growing percentage of companies are considering adding these benefits in the future.
Equity awards have become an increasingly popular benefit employers are implementing to attract and retain talent. About half of employees said they are interested in stock awards, while about 30% of employees plan to implement such awards. Among employers who already offer equity awards, two-thirds say the number of employees receiving them has increased over the past three years and 83% are considering expanding these offerings.
“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,” said Kai Walker, head of retirement research and insights at Bank of America. “Financial wellness programs, equity awards, debt assistance, caregiver support can all help attract and retain top talent.”
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