New Report Reveals Lack of Employee Awareness
About Caregiving, Health Care, and Diversity and Inclusion Benefit
Programs
Bank of America today announced findings from its annual 2019
Workplace Benefits Report, which reveals that more than twice as
many companies are offering workplace financial wellness programs
to employees today compared to four years ago (53 percent today
versus 24 percent in 2015). However, awareness and understanding of
critical health care savings and caregiving support benefits are
lacking.
Now in its ninth edition, this report tracks the importance of
benefit programs and uncovers an expanded set of opportunities for
employers to improve their employees’ financial wellness. Based on
a nationwide survey of 996 employers and 804 employees, key
findings include:
- Majority of employees feel financially well: 55 percent
of employees today rate their own financial wellness as good or
excellent, down from 61 percent a year ago. Employees who rate
their financial wellness positively are more likely to feel that
they can effectively manage their day-to-day finances, pay bills
while saving for future goals, and that their retirement savings
are on track.
- Women lag men in retirement savings: Women have saved
far less for retirement, reporting median retirement savings of
$30,000, compared to $100,000 for men. This may be contributing to
the fact that only 43 percent of women report feeling financially
well, compared to 65 percent of men.
- Impact of caregiving on the workplace: 45 percent of
employees perform caregiving duties for a family member, a number
significantly underestimated by employers. In fact, 62 percent of
caregiver employees don’t believe their employer knows they’re a
caregiver. Caregivers report missing an average of 12 hours of work
per month due to caregiving responsibilities.
- Caregiving benefit disconnect: While 88 percent of
employers offer some type of caregiving resources, 71 percent of
employees are unaware of these offerings, and just 34 percent of
caregiver employees have taken advantage of employer
resources.
- Personal advice continues to be a top priority:
Employees rank advice from a professional as their top priority for
a financial wellness program, followed by information on financial
topics beyond 401(k) education, and the availability of financial
solutions and services to help with their entire financial
lives.
“When employees live their best financial lives, it shows
in the workplace,” said Lorna Sabbia, head of Retirement and
Personal Wealth Solutions at Bank of America. “While we should
celebrate the increasing prevalence of financial wellness programs,
more can be done to drive discussion and engagement about benefits
that support employees’ complex financial journeys, including
caregiving duties, rising health care costs, and funding longer
lives.”
The health care knowledge gap
The report cites that health care costs are a significant
financial burden for employees, costing each an average of $7,685
annually1. These costs only increase in retirement. A 65-year-old
couple, on average, will need $296,000 to cover out-of-pocket
health care expenses throughout their retirement2; yet, when
employees were asked about the core building blocks of financial
wellness, managing health care costs ranked last. Also surprising,
53 percent of employees have skipped or postponed at least one
important medical activity to save money, including appointments
(32 percent), tests/procedures (21 percent) and medication
purchases (14 percent).
Amid growing concerns about health care costs, triple
tax-advantaged3 health savings accounts (HSAs) have emerged as a
critical tool in saving for health care costs today and later in
life. Despite their importance, a true understanding of HSA
benefits among both employees and employers is lacking. While 57
percent of employees say they have a good understanding of HSAs,
only 11 percent correctly identified four basic attributes.
Similarly, while 65 percent of employers claim they have a solid
understanding of HSAs, a mere 7 percent accurately identified
features of an HSA.
Engagement in diversity and inclusion programs is
lacking
Diversity and inclusion (D&I) programs have a wide range of
benefits. Employers report that D&I programs contribute to a
strong company culture, improve brand image, help retain top
talent, and are necessary to keep up within their industry4. Still,
49 percent of employers do not offer D&I programs today, and
among them, only 27 percent are considering offering these programs
in the future.
For organizations that do offer D&I programs (51 percent),
many say lack of employee engagement is impeding their impact.
While employers agree the success of their D&I program depends
on strong executive support and widespread employee engagement,
only 49 percent of employees who are aware of the D&I programs
at their workplace participate.
“At Bank of America, we’re committed to partnering with
employers on financial wellness solutions through a holistic and
integrated approach to workplace benefits that’s personal and
actionable for each and every employee,” said Lisa Margeson, head
of Retirement Client Experience and Communications at Bank of
America. “By educating employees on rising health care costs,
bringing caregiving conversations into the open, and demonstrating
commitment to D&I programs, employers can play a more proactive
role in helping them improve their financial lives.”
Bank of America’s Retirement & Benefit Plan Services
organization serves more than 30,000 companies of all sizes and
nearly 6 million employees. Bank of America offers institutional
client employees a range of financial benefit programs and
solutions to help them pursue their financial future, including
retirement and health savings vehicles, and financial education
through financial wellness programs.
For more findings from the Bank of America Workplace Benefits
Report, including tips for employers, click here.
1
2018 Employer Health Benefits Survey, KFF,
October 2018.
2
EBRI Issue Brief 460, October 2018.
3
About triple tax advantages: Participants
can receive tax-free distributions from their HSA to pay or be
reimbursed for qualified medical expenses they incur after they
establish the HSA. If they receive distributions for other reasons,
the amount withdrawn will be subject to income tax and may be
subject to an additional 20 percent tax. Any interest or earnings
on the assets in the account are tax-free. Participants may be able
to claim a tax deduction for contributions made to the HSA. We
recommend that applicants and employers contact qualified tax or
legal counsel before establishing an HSA.
4
McKinsey, “Delivering Through Diversity,”
January 2018 and Deloitte Review, Issue 22. “The diversity and
inclusion revolution: 8 powerful truths,” January 2018.
Workplace Benefits Report Methodology Escalent conducted an
online survey with employees and employers, who responded between
February 1 and February 26, 2019. To qualify for the survey,
employees had to be current participants in the 401(k) plan and
employers had to currently offer a 401(k) plan; the plans did not
have to be provided by Bank of America. Bank of America was not
identified as the sponsor of the study.
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 approximately
66 million consumer and small business clients with approximately
4,300 retail financial centers, including approximately 2,200
lending centers, 2,400 financial centers with a Consumer Investment
Financial Solutions Advisor and 1,700 business centers;
approximately 16,600 ATMs; and award-winning digital banking with
more than 37 million active users, including approximately 28
million mobile 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. Bank of America
offers industry-leading support to approximately 3 million small
business owners 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
approximately 35 countries. Bank of America Corporation stock
(NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of America
newsroom. Click here to register for news email alerts.
www.bankofamerica.com
Bank of America is a marketing name for the Retirement Services
business of Bank of America Corporation ("BofA Corp."). Banking
activities may be performed by wholly owned banking affiliates of
BofA Corp., including Bank of America, N.A., member FDIC. Brokerage
and Investment advisory 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.
Investment products:
Are Not FDIC Insured
Are Not Bank
Guaranteed
May Lose Value
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190919005032/en/
Reporters May Contact: Matt Card, Bank of America,
1.617.434.1388 matthew.card@bofa.com
Bank of America (NYSE:BAC)
Historical Stock Chart
From Apr 2024 to May 2024
Bank of America (NYSE:BAC)
Historical Stock Chart
From May 2023 to May 2024