2024 Workplace Benefits Report finds financial wellness gender gap widening and greater concern over cost-of-living increases.
Today, 47% of American workers feel financially well, up from 42% at this time last year. This is according to
Meanwhile, the gap in financial wellness between men and women continues to grow, with 53% of men reporting good financial wellness compared to 36% of women. In addition, employees expressed concern about inflation, with 76% of workers saying that the cost of living is outpacing growth in their salary or wages, compared to 67% in
'Despite concerns about the cost of living and plans to limit expenses, more employees are feeling confident about their financial well-being,' said
Based on nationwide surveys of nearly 1,000 employees and more than 800 employers, the report analyzed employee financial well-being and retirement preparedness, the state of the workplace, benefits trends and more.
Key Insights:
6 in 10 workers are limiting current expenses. Many employees say they are taking proactive steps to improve their financial wellness, including limiting expenses (62%), paying down debt (43%) and adding to emergency funds (41%).
Job loyalty remains high. 70% of employees plan to keep their jobs for the next year, with good work/life balance as the top reason employees want to stay (66%). Of those who plan to leave, compensation (52%) was the top reason for the switch, followed by career growth (45%).
Pay equity is becoming a powerful recruitment tool. Only 44% of employers currently address pay equity. However, those with pay equity initiatives in place notice an impact, with 78% reporting an improvement in attracting top talent vs. 50% without such initiatives.
There's a potential disconnect in retirement health care expenses. Most Americans drastically underestimate the cost of health care in retirement. Current research [1] shows that a retired 65-year-old couple could need more than
Additional Findings:
There's a divide between working caregivers and employers. While most employers (81%) say they offer support to caregivers, 61% of caregivers are not aware of available support. This is significant, considering a little more than half of the employees (52%) we surveyed identify as caregivers, and 49% of caregivers are not comfortable self-identifying to their employers.
American workers are beginning to re-prioritize retirement savings. The number of employees prioritizing long-term retirement savings is slowly trending upwards (33% today, up from 31% in 2023). This has become their top financial goal, overtaking those focused on short-term financial needs last year.
Debt assistance is emerging as an attractive benefit. Employers are starting to explore ways they can support employees with debt, with 37% now offering student loan repayment assistance.
Wellness reimbursements are becoming a new benefit trend. According to the data, 48% of employees want their company to offer a Lifestyle Spending Account (LSA), which can help employees pay for a range of wellness expenses and encourage healthy behaviors. Examples of qualified expenses may include gym memberships, mediation classes and camping supplies. However, only 29% of employers currently offer an LSA.
More findings, including actionable steps for employers, are available in the
Workplace Benefits Report Methodology
Escalent surveyed a national sample of 955 employees who are working full-time and participate in 401(k) plans, and 804 employers who offer both a 401(k) plan and have sole or shared responsibility for decisions made in the plan. The survey was conducted between
About
Reporters may contact:
Phone: 1.980.387.4899
don.vecchiarello@bofa.com
MAP6629795
Footnotes
[1]
(C) 2024 Electronic News Publishing, source