Beyond the 401(k): Meeting modern employee needs

Written in collaboration with The Business Journals.

 

For the first time, five generations – from Gen Z to baby boomers – are working side by side, bringing a wide range of financial priorities into the same workplace.

 

A Gen Z employee may be focused on budgeting, repaying student loans, building emergency savings and starting to save for the future, while someone later in their career might be balancing caregiving responsibilities, family expenses, retirement planning or rising health care costs.

 

Meeting modern employee needs means designing benefits around where employees are in life now and where they are trying to go next. Bank of America’s 2026 Workplace Benefits Report¹ shows how different those needs can be.

 

Eighty-eight percent of baby boomers are prioritizing saving for retirement, compared to 64% of Gen Z and Millennials. Younger employees, meanwhile, are building foundations: 46% are focused on growing emergency savings and 24% are saving to buy their first home, compared to just 2% of boomers and 10% of Gen X.

 

Overall financial well-being also varies across generations. Boomers report the highest overall financial well-being, with 72% saying they feel financially secure, compared with 53% of Gen Z and Millennials and 51% of Gen X.

 

While financial well-being is shaped by individual circumstances, including income, family obligations and personal goals, the right benefits package can provide meaningful support at every point along the way.

 

“No two employees are on the same financial timeline. The most effective benefits programs are the ones built to meet employees wherever they are in that journey”, said Stacy Bucchere, Managing Director of Workplace Benefits at Bank of America.

 

 

Younger employees are balancing short-term needs with long-term goals.

 

Bank of America’s Better Money Habits² research found that 42% of Gen Z adults are living paycheck to paycheck, and nearly half say the high cost of living is a barrier to financial success. Still, they are making progress on saving for the future. According to the 2026 Workplace Benefits Report¹, Gen Z employees are getting an earlier start on retirement planning, beginning to save at age 24 — 10 years earlier than baby boomers.

 

For younger employees, the right benefits can help create financial habits that last. Financial wellness resources like budgeting tools and student debt support, as well as retirement plan features such as automatic enrollment and contribution increases, can help make saving easier.

 

Employer action item: Tailor benefits to align with employees’ needs at different life stages. Prioritize communicating what benefits are available and how employees can take advantage of them so that they are fully utilized.

 

 

As employees progress through their careers, their benefit needs often become more complex. Some are looking for maternity and paternity benefits, childcare support, menopause benefits or wellness reimbursements. Others are managing the challenges of balancing work with caregiving responsibilities. In fact, almost six in 10 employees are caregivers¹ supporting children, aging parents or other family members, according to Bank of America research.

 

“Comprehensive workplace benefits can help employees bring their full selves to work”, Bucchere said. “When employers recognize that life doesn't stop at the office door — whether someone is raising a child, caring for a parent or navigating a major health transition — they create an environment where people can actually thrive.”

 

Employer action item: Start by identifying the most common needs across your workforce. Surveys, employee resource groups, interviews and benefits usage data can help pinpoint gaps, from emergency savings and debt management to caregiving support and wellness resources.

 

 

For many employees, the hardest part of financial planning is balancing today’s needs with tomorrow’s priorities.

 

Modern benefits increasingly support both short-term and long-term financial needs, ranging from emergency savings programs and debt management resources to longer-term vehicles like employee stock awards and guaranteed income plans.

 

Health care is one area that requires balancing short-term expenses with long-term saving. Employees often underestimate health care costs in retirement, even though some couples may need as much as $469,000 in savings³ to cover those expenses. In addition to helping cover current medical expenses, HSAs may also help participants build savings for future healthcare needs while offering potential tax advantages, subject to eligibility requirements and individual circumstances. Yet with only 12% of HSA holders using HSAs for long-term savings, there is an opportunity to provide more education on their full potential.

 

For boomers nearing retirement, benefits can help address questions about financial readiness, future health care costs and the transition into retirement.

 

Employers can also consider phased retirement benefits for employees who may not be ready to leave work altogether. These programs can give experienced employees a way to mentor younger workers and share lessons with the next generation.

 

Employer action item: Offer benefits that address immediate financial needs while supporting long-term financial goals.

 

 

“The most important takeaway for leaders is to make sure you understand what your employees are looking for”, Bucchere said.

 

Leaders can start by asking employees what they need, reviewing participation data and measuring whether current programs are working. Historically, only 55% of employers⁴ track the effectiveness of their benefits, leaving an opportunity to improve engagement and retention.

 

Bank of America’s 2026 Workplace Benefits Report¹ found that 55% of employees rate their financial wellness as good or excellent, while employers believe that number is 71%.

 

That gap shows why communication should not end at open enrollment. Clear language, ongoing education and digital support tools can help people better understand and engage with their benefits year-round.

 

Some employers still assume comprehensive benefits are out of reach, but John Quinn, Managing Director of Workplace Benefits Product & Platform Management at Bank of America, says companies of all sizes can offer meaningful support. Options like Pooled Employer Plans can reduce the administrative burden and expand access to retirement benefits.

 

“It’s about finding the right benefits package for your company and employees”, Quinn said.

 

With Bank of America Workplace Benefits®, your employees have access to the benefits and solutions they need — no matter where they are on their financial journey. Learn more about how to elevate your benefits program.⁵

 

The views and opinions expressed are those of the speaker, are subject to change without notice at any time, and may differ from views expressed by Merrill or other divisions of Bank of America. These materials are provided for informational purposes only and should not be used or construed as a recommendation of any service, security or sector.

 

Bank of America, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

 

Written in partnership with The Business Journals, by Sydney Wiederhold, Writer, TBJ Content Studio.

 

The views and opinions expressed are those of the writer, are subject to change without notice at any time, and may differ from views expressed by Merrill or other divisions of Bank of America. These materials are provided for informational purposes only and should not be used or construed as a recommendation of any service, security or sector.