Navigating Financial Challenges: Key Insights from the 2025 Workplace Benefits Report

Employees are increasingly looking to their employers for support as they navigate financial pressures. According to findings from the 2025 Workplace Benefits Report, developed by Bank of America and the Bank of America Institute, while 68% of employees express optimism about their financial futures over the next three years, many grapple with urgent financial needs caused by rising living costs and persistent inflation.

Growing Demand for Employer Financial Support

The report reveals a significant shift in employees seeking immediate financial assistance from their employers, with 26% of respondents requesting help for near-term financial issues—this figure has doubled since 2023, when only 13% sought such support. Employees are particularly interested in help with:

• Building emergency savings
• Reducing debt
• Managing everyday expenses
• Improving financial literacy

Moreover, there’s a strong desire for educational resources on financial preparedness, with 36% of respondents wanting guidance on retirement readiness, 33% on retirement income strategies, and another 33% wishing to develop healthier financial habits.

Persistent Gaps in Financial Wellbeing

Despite the demand for support, fewer than half of employers are meeting these needs. Only 54% of larger companies and 32% of smaller firms provide comprehensive financial wellness programs, highlighting a gap in employer offerings and employee expectations regarding financial wellbeing.

Debt and Savings Challenges

Emergency savings remain a critical concern, ranking just below retirement. The survey indicates that 53% of employees have not met their savings goals. This shortfall is more pronounced among women, with 62% indicating they fall short, compared to 44% of men. Furthermore, the burden of debt is significant: 85% of employees reported having some form of personal debt, with 58% specifically citing credit card debt as a concern. Alarmingly, 45% of participants attribute their inability to save more to debt, yet less than a third of employers offer debt or credit counseling services.

Disparities in Retirement Preparedness

Retirement savings also present challenges, with only 59% of women feeling on track compared to 72% of men. Moreover, 50% of employees expressed regret about not starting their retirement savings earlier.

Employee Benefits as a Key Retention Strategy

As the landscape of employee benefits evolves, they increasingly influence job selection and retention. The 2025 report highlights a marked increase in employees considering leaving their jobs due to inadequate benefits—from 15% in 2024 to 24% this year.

Rising Interest in Specific Benefits

Interest in student loan repayment assistance has surged, climbing from 5% in 2023 to a much higher percentage today, even as employers offering this benefit has decreased. Equity compensation is also gaining traction, with 48% of employees expressing the desire for stock awards. Currently, 30% of employers plan to offer them. Moreover, among those companies that already provide equity compensation, 66% have increased access in the last three years, and 83% are contemplating further enhancements. Other areas of growing interest include financial wellness programs, caregiver support, and debt assistance.

As Kai Walker, head of retirement research and insights at Bank of America, notes, “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.” Financial wellness programs, equity awards, debt assistance, and caregiver support are tools that can help attract and retain top talent.

Conclusion: The Future of Employee Financial Support

The 2025 Workplace Benefits Report, based on a study conducted by Escalent, surveyed 962 full-time employees with 401(k) plans and 800 employers responsible for benefit decisions. The data was collected between December 2, 2024, and January 13, 2025, with an additional survey in April 2025.

This report underscores the urgent need for employers to adapt their benefits offerings to meet the changing needs of their workforce. As financial pressures mount, proactive measures taken by employers can not only support their employees but also strengthen talent retention and satisfaction.

Tags: Employee Benefits, Financial Wellness, Retirement Planning

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