Employee financial wellness hits 4-year high, but employers miss key struggles

• Key Insight: Learn why employers and employees disagree on workforce financial security.
• What's at Stake: Employers competing for talent while misjudging their workforce's financial stress.
• Supporting Data: 39% of employees who link career loyalty to one factor.
  Source: Bullets generated by AI with editorial review

There's a 16-point perception gap between employers and employees on financial well-being, revealed a new study from Bank of America, with employers far more likely to believe their workforce is financially secure than workers themselves. 

The banking giant's 2026 Workplace Benefits Report found that 71% of employers view their workforce's financial well-being as good or excellent, while only 55% of employees share that assessment.

Despite the disconnect, the report found that employees' 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 futures, with 66% expressing confidence in their career prospects over the next three years. 

But that optimism exists alongside significant financial pressures: 76% of employees say the economy causes them stress, 62% point to inflation as a concern, and 75% cite the cost of living as a challenge to their financial security.

Read more: The positive impacts of employee financial wellness

"We're seeing real progress for American workers as overall financial wellness steadily rebounds to a four-year high," said Stacy Bucchere, managing director of workplace benefits client management at Bank of America. "However, employees are still navigating complex financial circumstances 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 who participate in a 401(k) plan and 806 employers with sole or shared responsibility for decisions involving their company's 401(k) plans. The survey included respondents from both small and large companies.

Saving for retirement a top priority

The Bank of America study also identified workers' top financial priorities, with 70% cited saving for retirement as their main goal. Even with the pressures of inflation and rising costs of everyday goods, 73% of employees 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 building emergency savings ranking as a top priority for 44% of workers. Nearly 60% of employees say they have reached their emergency savings goal in 2026, representing a 10-percentage-point increase from the previous year. 

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

"Saving for retirement remains a top priority for American workers, and more are feeling on track toward their retirement savings goals," said Kai Walker, managing director of workplace benefits research at Bank of America. "Perhaps most encouraging is that the youngest generation in the workforce is starting to save for retirement a full decade earlier than their older peers."

Beyond helping employees build financial security, the report suggests 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 that successfully attracted top talent over the past year say their workplace benefits played a key role. Meanwhile, 90% of employers offering financial wellness programs report measurable returns, including higher employee satisfaction, improved productivity, stronger engagement, and better retention. 

"These findings demonstrate the mutual value of financial wellness programs to both employees and employers," said John Quinn, managing director of workplace benefits product and platform management at Bank of America. "In today's labor market, workplace benefits are no longer just a recruitment checklist item; they're a key to stronger workforces. This is especially true for small businesses that report having a harder time engaging top talent. A strong benefits offering can help even the playing field."