CHARLOTTE, N.C.–(BUSINESS WIRE)–Bank of America immediately introduced findings from its 10th annual Office Advantages Report, which reveals 62% of employers really feel “extremely” answerable for their workers’ monetary wellness immediately, in comparison with 13% in 20131. This sense of elevated accountability by employers is even larger with respect to their workers’ retirement, with 80% feeling very or extraordinarily answerable for serving to workers put together for retirement healthcare wants and prices, up from 22% in 2012;2 and 78% for getting ready workers for retirement revenue wants, up from 33%.2
The vary of matters being addressed by office monetary wellness packages has elevated considerably as nicely, with workers searching for help and assets throughout extra of their monetary lives. In contrast with findings from the 2013 Office Advantages Report, these packages immediately concentrate on:
- Saving for retirement (81% vs. 70%)
- Planning for healthcare prices (71% vs. 38%)
- Budgeting (63% vs. 14%)
- Saving for school (55% vs. 13%)
- Managing debt (54% vs. 15%)
“Over the last decade, we’ve seen a significant increase in the range of financial wellness programs, which have become an integral part of employer benefits offerings,” mentioned Lorna Sabbia, Head of Retirement and Private Wealth Options for Bank of America. “While this growth is essential and encouraging, the pandemic has brought the topic of holistic well-being into sharper focus. Though the effects of these times have yet to be fully understood, employees are facing greater stress and demands on their time, straining their overall sense of wellness. More needs to be done to ensure employees feel supported at work – financially, physically, emotionally and mentally.”
The report examines developments in office monetary advantages and wellness, monitoring each worker and employer sentiment. Based mostly on a nationwide survey of 996 workers and 808 employers, key findings embody:
- Monetary wellness and productiveness are interconnected. 83% of employers consider worker monetary wellness packages and instruments assist to create extra productive, loyal, happy and engaged workers. This works each methods, as 57% of workers really feel their well-being has an ideal influence on productiveness. When requested what elements contribute to their general sense of well-being, workers cited bodily (51%) and psychological wellness (54%) solely barely extra so than monetary (49%).
- Monetary wellness has declined since 2018, and varies by era. In March of this 12 months, 49% of workers rated their monetary wellness nearly as good or wonderful, down from 55% in 2019 and 61% in 2018. Fewer Gen Z (41%), Millennial (41%) and Gen X (38%) workers fee their monetary wellness nearly as good or wonderful immediately, in contrast with 60% of Child Boomers and the Silent Era.
- Skilled monetary recommendation and holistic help stay high priorities. Fewer than four-in-10 workers say they’ve made vital progress towards particular private monetary targets. The highest impediment cited for not reaching their targets is an absence of disposable revenue after month-to-month bills. Workers ranked recommendation from a monetary skilled as the highest employer-offered useful resource, with whom they wish to focus on a variety of matters, and have flexibility by way of how they entry recommendation.
- Debt is a multifaceted problem. 82% of workers have some kind of debt, with the most typical sorts being bank card (50%), mortgage (46%) and scholar loans (21%). Debt can erode a way of general well-being. Fifty-nine % of workers say they don’t have a excessive degree of management over their debt, and 36% say it impacts their means to attain monetary targets.
Girls want monetary wellness packages tailor-made to their distinctive monetary journey
The report discovered that 41% of ladies fee their monetary wellness nearly as good or wonderful, in comparison with 58% of males. This – mixed with the truth that girls usually make lower than their male counterparts, usually tend to take trip of the workforce to boost a toddler or present look after a member of the family, and sometimes reside longer – underscores the necessity for monetary wellness packages tailor-made to girls’s distinctive monetary journeys and life paths. The research revealed a number of variations between women and men, together with on the subject of debt:
- Girls usually tend to have bank card debt (56% vs. 43% of males) and scholar loans (30% vs. 11% of males), and usually tend to really feel an absence of management over their debt (67% v. 49% males).
- Girls are greater than twice as more likely to rank paying off bank card debt amongst their high monetary targets (21% vs. 9% of males).
- Girls are practically twice as more likely to cite lack of cash after month-to-month bills as a main problem to reaching monetary targets (47% vs. 27% of males).
“Women have inherently different financial journeys than men, creating a clear need for employers to target financial wellness solutions by both age and gender,” mentioned Kevin Crain, Head of Office Options Integration for Bank of America. “At Bank of America, our goal is to work with employers to provide wellness programs that address the diverse needs of their workforce. These programs can be more critical today as the pandemic creates new challenges to maintaining financial wellness.”
Bank of America’s Retirement & Profit Plan Companies group serves greater than 30,000 corporations of all sizes and practically 6 million workers. Bank of America provides institutional shopper workers a variety of monetary profit packages and options to assist them pursue their monetary future. Earlier this 12 months, the corporate launched Monetary Life Advantages, a complete suite of office advantages and options bringing collectively conventional monetary advantages – together with retirement, well being financial savings, fairness compensation and non-qualified deferred compensation plans – with a company worker banking3 and investing4 providing that may assist handle workers’ on a regular basis wants.
For extra findings from the Bank of America 2020 Office Advantages Report, together with motion steps for employers, click on right here.
1 2013 Office Advantages Report
2 2012 Office Advantages Report
3 Bank merchandise can be found from Bank of America, N.A., and affiliated banks.
4 Funding merchandise can be found from Merrill Lynch, Pierce, Fenner & Smith Integrated.
Office Advantages Report Methodology
Escalent surveyed a nationwide pattern of 996 workers who’re working full time and take part in 401(okay) plans, and 808 employers who supply each a 401(okay) plan and have sole or shared accountability for choices made within the plan. Of workers surveyed, 48% have been males and 52% have been girls, and so they have been represented throughout life phases equivalent to Gen Z and Millennials (414), Gen Xers (229) and Child Boomers & Silent Era (353). The pattern employer inhabitants included 401 Small corporations (<$20M in 401(okay) plan property), 208 Mid-sized corporations ($20M to <$100M in 401(okay) plan property), and 199 Giant corporations (≥$100M in 401(okay) plan property). The survey was carried out between February 27, 2020 and March 27, 2020.
Monetary Wellness at Bank of America
At Bank of America, we all know that supporting the bodily, monetary and emotional wellbeing of our workers of their private life additionally helps them of their work life — to allow them to be the perfect at work and at dwelling. Relating to monetary wellness, we consider that the extra knowledgeable persons are about their cash, the clearer their monetary outlook could be. This is applicable not simply to our shoppers, however to our workers, as nicely. For this reason we provide strong monetary choices that concentrate on driving higher behaviors throughout life priorities and the monetary spectrum — budgeting, planning, saving, investing and extra. Our aggressive monetary advantages – together with 401(okay) contribution matches, free retirement recommendation, well being financial savings accounts, academic assets and monetary wellness instruments – assist workers handle cash points within the here-and-now, put together for retirement and shield their household in the long run.
Bank of America
Bank of America is without doubt one of the world’s main monetary establishments, serving particular person customers, small and middle-market companies and huge firms with a full vary of banking, investing, asset administration and different monetary and danger administration services. The corporate offers unmatched comfort in the US, serving roughly 66 million client and small enterprise shoppers with roughly 4,300 retail monetary facilities, together with roughly 3,000 lending facilities, 2,600 monetary facilities with a Shopper Funding Monetary Options Advisor and roughly 2,200 enterprise facilities; roughly 16,900 ATMs; and award-winning digital banking with roughly 39 million energetic customers, together with roughly 30 million cellular customers. Bank of America is a world chief in wealth administration, company and funding banking and buying and selling throughout a broad vary of asset courses, serving firms, governments, establishments and people around the globe. Bank of America provides industry-leading help to roughly Three million small enterprise households by a set of revolutionary, easy-to-use on-line services. The corporate serves shoppers by operations throughout the US, its territories and roughly 35 international locations. Bank of America Company stock (NYSE: BAC) is listed on the New York Stock Trade.
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Bank of America is a advertising title for the Retirement Companies enterprise of Bank of America Company (“BofA Corp.”). Banking actions may be carried out by wholly owned banking associates of BofA Corp., together with Bank of America, N.A., member FDIC. Brokerage and Funding advisory providers are offered by wholly owned non-bank associates of BofA Corp., together with Merrill Lynch, Pierce, Fenner & Smith Integrated (additionally known as “MLPF&S” or “Merrill”), a dually registered broker-dealer and funding adviser and member SIPC.
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