Retirement Takes Center Stage in Benefit Allocations, per BofA

Amid economic challenges and financial stress, employees’ retirement confidence continues to climb, according to Bank of America’s “2026 Workplace Benefits Report.”

Most surveyed employees (70%) cited retirement savings as a top financial goal, more than cited other goals such as paying medical or healthcare expenses and making home renovations.

More than half of surveyed employees (55%) rated their financial wellness as good or excellent, up 3 percentage points from last year and 11 percentage points from 2023. Employers were even more confident in their employees’ economic health, with 71% rating their workforce financial well-being as good or excellent.

“That 16-point gap represents an opportunity for employers to invest in financial wellness support,” wrote Stacy Bucchere, Bank of America’s managing director of workplace benefits, in an email to PLANADVISER. “Advisers can play a valuable role in bringing that awareness to employers and identifying opportunities to address the gap.”

Despite growing confidence, employees said they continued to face significant financial pressures. Seventy-six percent of responding employees reported feeling stressed about the economy, 75% cited cost of living and 62% reported concern about inflation as challenges to their financial security.

“Economic headwinds are creating tension. Nearly one-third of employees say they’ve reduced their retirement contributions due to inflation pressures,” added Bucchere. “While retirement confidence and readiness are increasing overall, that isn’t the case for all employees, and continued education and support from plan advisers remains critical.”

Economic Pressures Threaten Retirement Readiness

Separately, the Primerica Financial Security Monitor Survey, recently released by financial services company Primerica Inc., showed that many middle-income families made active steps to save money, yet 71% of respondents still said their income was not keeping pace with the cost of living.

Additionally, 66% of respondents did not think they were saving enough to retire comfortably, and 74% rated their ability to save for the future negatively.

Even with a negative outlook toward future savings, families reported they were  proactive and optimistic about their financial control. Nearly half (46%) successfully cut back on everyday spending this year, 36% said they were staying flexible and adjusting as needed, and 32% stuck to a stricter monthly budget. With such steps, 70% reported confidence in their ability to adapt financially, and 62% said recent economic conditions led to conversations about becoming more financially resilient.

“The challenge today is that many families feel they are doing everything right but still struggle to get ahead as rising costs continue to outpace their progress,” said Glenn J. Williams, Primerica’s CEO, in a statement. “That’s why financial guidance is more important than ever. It can help people identify opportunities, make informed choices and build a financial game plan that reflects their current reality.”

Younger Generations Remain Hopeful

True optimism has proven persistent amongst younger generation savers, according to Bank of America. Report findings showed the youngest generation of workers started to save for retirement 10 years earlier than their eldest peers: Generation Z respondents started saving for retirement at an average age of 24, whereas Baby Boomer respondents averaged starting to save at age 34.

“That’s real progress, but plan advisers can help young workers sustain that momentum,” Bucchere wrote. “One of the most impactful things advisers can do is encourage younger workers to review and increase their contributions annually, especially after a raise.”

Overall optimism about financial well-being scored better among older-generation respondents, compared with younger generations: 75% of Boomer respondents felt a sense of optimism about their financial well-being looking at the next three years, compared with 60% of Generation Xers who felt the same optimism and 68% of Generation Z and Millennial respondents.

“Our research also shows that young generations are more likely to wish they took full advantage of their employer’s 401(k) match. Plan advisers can help by making match opportunities more visible and easier to act on,” she said.

From December 4, 2025 through January 26, 2026, Bank of America partnered with Escalent to survey 941 U.S. full-time employees who participated in 401(k) plans and 806 employers who offered a 401(k) plan and had sole or shared responsibility for decisions made in the plan. On behalf of Primerica, Change Research polled 898 U.S. adults with incomes from $30,000 through $130,000 between June 3 through June 6.