The adverse economic consequences of the pandemic brought significant change in the lives of many, affecting our workplaces, employees, families and communities as a whole. Employees are feeling the impact, and there is growing evidence that the majority lack the financial skills necessary to tackle these challenges.
It’s no surprise that employee financial stress is at an all-time high. In fact, 64% are stressed about their financial situation, and 67% believe that the cost of living is outpacing growth in their income.1 When employees are stressed about their finances, it has deep impacts on workplace productivity, creativity and morale. The good news is that employees are looking to their employers for help, and we’ve seen employers’ sense of responsibility grow, significantly expanding the scope of financial wellness programs.
This study focuses on understanding — through a generation, gender and income2 lens — the financial wellness of 105,127 401(k) participants on Bank of America’s record-keeping system. We’ve also included trend analysis from 135, 195 401(k) participants in 2021 and 88,714 participants in 2022. The findings can help employers gain a greater understanding of employees’ behaviors and financial needs so they can better tailor workplace benefits programs that inspire employees to take action to improve their financial health.
