Dive Brief:
- Despite economic anxieties, 55% of U.S. employees reported having a sense of positive financial well-being in Bank of America’s 2026 Workplace Benefits Report, representing an 11-point increase from 2023.
- However, 71% of employers said they believed their workers’ financial well-being was good or excellent, highlighting a discrepancy between how companies see their employees and how employees see themselves. The report said this gap indicated that “employers are underestimating the day-to-day financial struggles of their workforce.”
- Meanwhile, 66% of workers said they were optimistic about their careers over the next three years, but 76% also reported being worried about the economy and 62% said they were concerned about inflation. Another 75% said the cost of living was “a challenge to their financial security,” per the report.
Dive Insight:
The report surveyed more than 900 full-time employees with 401(k) plans and more than 800 employers that offered 401(k) plans. It found that one of the most important aspects of financial well-being for employees was retirement savings, with 70% of workers listing that as their top financial goal.
Per survey responses, 73% of employees said they felt confident about the trajectory of their retirement savings, representing a 6-point gain from 2025. Notably, employees are also beginning to save earlier in their careers, with Generation Z employees saying they started saving at an average age of 24, compared to baby boomers, who didn’t start saving until an average age of 34.
“We’re seeing real progress for American workers as overall financial wellness steadily rebounds to a four-year high,” Stacy Bucchere, managing director of workplace benefits client management at Bank of America, said in a statement. “However, employees are still navigating complex financial circumstances that require proactive support from employers to help build long-term stability.”
Employees are also looking to employers for help navigating their financial wellbeing and debt management, with almost a third saying they wanted their companies to offer financial advisory services. In a competitive labor market, providing financial planning assistance can also help with retention, the report said. It found that more than 1 in 3 workers have either left or considered leaving their jobs in the past year, and 39% said they stayed on specifically because of a competitive benefits package.
Nonetheless, a Monster 2026 WorkWatch Report found that 73% cited wage increases as their single biggest priority in 2026, with 58% saying their salaries weren’t keeping up with inflation.
Because of this, employers may find it more difficult to keep top talent in place over the next six months, according to a recent report from Eagle Hill Consulting. That research found that workers were frustrated by their salaries and optimistic about the potential for a better job elsewhere. Eagle Hill said that although retention rates are historically strong right now, signs point to declining retention rates in the second half of 2026.