From emergency savings and debt repayment to retirement planning, workers feel increasingly overwhelmed—and are turning to their employers for help. The “2025 Workplace Benefits Report,” produced by Bank of America in partnership with the Bank of America Institute, found that while 68% of employees surveyed were optimistic about their financial future over the next three years, rising living costs and persistent inflation forced a rising number of workers to balance urgent financial needs with long-term goals.
According to the report, 26% of employee respondents said they sought employer support for near-term financial needs—double the 13% who said the same in the 2023 version of the report. Workers reported wanting help with building emergency savings, reducing debt, managing everyday expenses and improving financial literacy. Survey respondents also expressed interest in educational resources on retirement readiness (36%), retirement income strategies (33%) and healthier financial habits (33%).
Despite this growing interest, fewer than half of employers surveyed offered comprehensive financial wellness programs—just 54% of large companies and 32% of smaller firms. This gap suggests many employers are still catching up to evolving employee expectations around financial wellbeing.
Debt, Savings, Retirement Gaps Persist
According to the report, emergency savings remained a top concern—second only to retirement—but 53% of employees surveyed said they had not reached their savings goals. The financial strain was greater for women: 62% of female employees reported falling short of their savings goals, compared with 44% of men.
The report also found that 85% of employees surveyed carried some form of personal debt, with 58% specifically carrying credit card debt. Nearly half (45%) said debt was the main reason they were unable to save more, yet fewer than one-third of employers surveyed offered debt or credit counseling to their workforce.
The retirement outlook was similarly uneven: 59% percent of women surveyed said they feel on track with retirement savings, compared with 72% of men. Across the board, half of employees surveyed said they wished they had started saving earlier.
Benefits Become a Talent Dealbreaker
According to the report, benefits are becoming a key factor in both job selection and employee retention. In this year’s edition, 24% of employees said they had either left or seriously considered leaving a job due to inadequate benefits—up sharply from 15% in 2024.
Interest in specific benefits is also on the rise. In 2023, just 5% of employees said they wanted help from their employer with student loan repayment. That number has nearly tripled, according to the most recent survey, even as fewer employers were offering this type of support.
Equity compensation is also gaining traction: 48% of employees surveyed said they want access to stock awards, while 30% of employers said they plan to offer them. Among companies already offering equity, 66% had expanded access in the past three years and 83% were considering further expansion. Other high-interest areas included financial wellness programs, caregiver support and debt assistance.
“Some companies are evolving their financial benefits to keep up with the needs of their employees, while others remain focused on traditional benefits alone, such as retirement plans and health insurance,” said Kai Walker, Bank of America’s head of retirement research and insights, in a statement. “Financial wellness programs, equity awards, debt assistance and caregiver support can all help attract and retain top talent.”
The “2025 Workplace Benefits Report” was based on research conducted by Escalent on behalf of Bank of America. The study included surveys of 962 full-time employees with 401(k) plans and 800 employers responsible for benefit plan decisions. The primary data was collected between December 2, 2024, and January 13, 2025, with a supplemental survey of 508 additional employees conducted between April 10 and May 1, 2025.
Source – https://www.plansponsor.com/benefits-continue-as-major-factor-in-employee-retention/