Employers Misjudge Workers Financial Well-Being

• Key insight: Learn why employers and employees disagree about employee financial security.
• What’s at stake: Employers are competing for talent while misjudging the financial stress on their employees.
• Support data: 39% of employees who associate professional loyalty with a factor.
  Source: AI generated bullets with editorial review

There is a 16-point difference in perception between employers and employees about financial well-being, A new study by Bank of America revealed that employers believe that their workforce is more financially secure than their employees.

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Of the giant bank 2026 Employment Benefits Report 71% of employers rate their employees’ financial well-being as good or excellent, while only 55% of employees share this rating.

Despite the disconnect, the report found that workers’ overall sense of financial well-being has reached a four-year high, rising 11 percentage points since 2023. Employees are also optimistic about their professional future, with 66% expressing confidence in their career prospects over the next three years.

But that optimism is beside the point significant financial pressures: 76% of workers say the economy is causing them stress, 62% worry about inflation and 75% cite the cost of living as a challenge to their financial security.

Read more: The positive effects of employee financial well-being

“We’re seeing real progress for American workers as overall financial well-being continues to rebound to a four-year high,” said Stacy Bucchere, managing director of workplace benefits client management at Bank of America. “However, workers are still navigating complex financial situations that require proactive support from employers to help build long-term stability.”

The report is based on a national survey conducted between December 2025 and January 2026 of 941 full-time employees participating in a 401(k) plan and 806 employers with sole or shared responsibility for decisions about their company’s 401(k) plans. The survey included respondents from both small and large businesses.

Saving for retirement a top priority

The Bank of America study also identified the top financial priorities of employees, with 70% saving retirement as a primary goal. Despite inflationary pressures and rising costs of everyday goods, 73% of workers feel confident that their savings are on track for retirement – a 6-point increase from 2025.

Employees are also focused on short-term financial goals, with 44% of employees citing building emergency savings as a top priority. Nearly 60 percent of workers say they’ve met their emergency savings goal by 2026, a 10 percent increase over the previous year.

Read more: Employees cite finances as a major barrier to workplace well-being

“Saving for retirement It remains a top priority for American workers, and they are increasingly focused on reaching their retirement savings goals,” said Kai Walker, managing director of workplace benefits research at Bank of America. “Perhaps most encouragingly, the youngest generation of workers is starting to save for retirement a full decade earlier than their older peers.”

In addition to helping employees build financial security, the report suggests that comprehensive benefits can also strengthen employee retention, with 39% of employees saying they remain loyal to their current employer because of its benefits package.

Nearly half (48%) of employers who have successfully attracted top talent in the past year say their workplace benefits played a key role. Meanwhile, 90% of employers offer it financial wellness programs report measurable benefits including increased employee satisfaction, improved productivity, stronger engagement and better retention.

“These findings demonstrate the mutual value of financial wellness programs for both employees and employers,” said John Quinn, managing director of workplace benefits products and platform management at Bank of America. “In today’s job market, workplace benefits are no longer just an item on the hiring list; they’re the key to a stronger workforce. That’s especially true for small businesses that report having a harder time attracting top talent. A strong benefits offering can even level the playing field.”