BofA Report: Financial Wellbeing of Employees at U.S. Companies Hits Four-Year High, Even as Cost-of-Living Pressures Persist

The report finds that overall employee financial wellbeing reached a four-year high of 55%, an 11-point increase from 2023. This sense of wellbeing is also reflected when employees consider the future: two-thirds (66%) expressed career optimism over the next three years. However, even amid this optimism, employees say the economy (76%) and inflation (62%) cause them stress, and three-quarters (75%) cite cost of living as a challenge to their financial security.

The report also reveals a disconnect: while 71% of employers rate their workforce's financial wellbeing as good or excellent, only 55% of employees agree, indicating employers are underestimating the day-to-day financial struggles of their workforce.

"We're seeing real progress for American workers as overall financial wellness steadily rebounds to a four-year high," said Stacy Bucchere, Managing Director of Workplace Benefits Client Management at Bank of America. "However, employees are still navigating complex financial circumstances that require proactive support from employers to help build long-term stability."

Retirement confidence climbs, younger workers start saving earlier

"Saving for retirement remains a top priority for American workers, and more are feeling on track toward their retirement savings goals," said Kai Walker, Managing Director of Workplace Benefits Research. "Perhaps most encouraging is that the youngest generation in the workforce is starting to save for retirement a full decade earlier than their older peers." 

The report's findings show that:

• 70% of employees cite retirement savings as a top financial goal.
• 73% of employees feel confident that their savings are on track for retirement, a 6-point gain from 2025.
• Gen Z employees are beginning to save at an average age of 24, compared to Boomers who started at an average age of 34.

The report also uncovered an underutilized savings opportunity for many employees. While more than 6 in 10 employers currently offer a healthcare plan with access to a Health Savings Account (HSA) – and more than 80% of employees with access to an HSA actively contribute – nearly half of participants are making regular withdrawals rather than investing or saving the funds for the future.

Employees make progress on immediate financial goals

Though saving for retirement remains a top priority for American workers, employees are also working toward short-term financial goals, including building emergency savings, which is a top priority for 44% of workers. Nearly 60% of employees say they have hit their emergency savings goal in 2026 – a 10-point increase when compared to 2025.

Employees have also made progress on paying down debt. Stress around debt has decreased 6 points since 2025, and the percentage of employees who say they have credit card debt is now 45%, down 11 points since last year. Even with these gains, employees are looking at employers to support them with debt management: the report indicates almost 1 in 3 employees say that having a financial advisor to help them create a personalized debt management plan would be valuable.

Workplace benefits are a decisive differentiator

As the labor market remains highly competitive in 2026, employee retention is a top business priority. The report indicates that more than 1 in 3 employees have left or considered leaving their job in the past year.

Comprehensive benefits packages are proving to be a competitive advantage:

• 39% of employees report that they remain loyal to their current employer specifically because of a competitive benefits package.
• 48% of employers who have successfully attracted top talent in the past year credit their workplace benefits as a leading factor.
• 9 out of 10 employers who offer financial wellness programs report reaping measurable returns, including higher employee satisfaction, improved productivity, deeper engagement and enhanced retention.

"These findings demonstrate the mutual value of financial wellness programs to both employees and employers," said John Quinn, Managing Director of Workplace Benefits Product & Platform Management at Bank of America. "In today's labor market, workplace benefits are no longer just a recruitment checklist item; they're a key to stronger workforces. This is especially true for small businesses that report having a harder time engaging top talent. A strong benefits offering can help even the playing field."

The report found that many employers are not yet leveraging emerging technology like AI to assess and enhance benefits offerings. While 87% of employers report using AI, only 52% use it for benefits administration, and just 35% use it to track benefits usage and engagement.

Frequently asked questions

Question: Where can I find the full Workplace Benefits Report?
Answer: The full 2026 Workplace Benefits Report (PDF) can be found in the Bank of America Newsroom.

Question: What is Workplace Benefits at Bank of America?
Answer: Bank of America Workplace Benefits provides guidance and solutions that help businesses support their employees' short- and long-term goals. Our dedicated team of experts has years of experience and supports companies with plan selection, setup and ongoing maintenance, making the process seamless for plan sponsors.

Question: What Workplace Benefits solutions and services does Bank of America offer its clients?
Answer: Through retirement and benefit plans¹, health benefit accounts², employee banking solutions², stock plan services¹ and more, seamlessly integrated across its full set of financial capabilities, employees have a more holistic view of their financial lives, so they get the benefits most relevant to what they need today and aligned to their goals for tomorrow.

Workplace Benefits Report Methodology

Escalent surveyed a national sample of 941 employees who are working full-time and participate in 401(k) plans, and 806 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 December 4, 2025, and January 26, 2026. To qualify, employees had to be current participants in a 401(k) plan, and employers had to offer a 401(k) plan option. Neither was required to work with Bank of America, which was not identified as the sponsor of the study.

Bank of America Institute

Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank's proprietary data, from nearly 70 million consumer and small business clients, four point five two trillion dollars$4.52T in total payments in 2025 and one point two trillion dollars$1.2T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Workplace Benefits is the institutional retirement and benefits business of Bank of America Corporation ("BofA Corp.") operating under the name "Bank of America." Investment advisory and brokerage services are provided by wholly owned non-bank affiliates of BofA Corp., including Merrill Lynch Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill"), a dually registered broker-dealer and investment adviser and Member SIPC. Banking activities may be performed by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A., Member FDIC.

Visit BofA Fast Facts for more information about the company.

Reporters may contact

Anu Ahluwalia, Bank of America
Phone: 1.646.855.3375
[email protected]

MAP# 9016405

Important disclosures
Investment products

Footnotes
¹ Investment products are available from Merrill Lynch, Pierce, Fenner & Smith Incorporated.
² Bank products are available from Bank of America, N.A., and affiliated banks.

SOURCE Bank of America Corporation