Bank of America today announced insights from its 2021 Financial Life Benefits Impact Report(PDF), which reveal that despite what was a challenging year financially for many Americans, the vast majority of current retirement plan participants remained committed to saving for the future. Last year, nearly 60% of employees participated in their workplace retirement plan – consistent with pre-pandemic participation rates in 2019. Among employers who use the auto enroll feature within their 401(k) plan, plan participation jumps to 86%1.
“Over the last year, employees across various industries continued to make progress toward their financial goals in the face of unprecedented challenges,” said Lorna Sabbia,head of Retirement and Personal Wealth Solutions at Bank of America. “At Bank of America, we’ve been inspired by the resiliency of employees and employers alike, and proud of the work we’ve done together to help employees continue preparing for retirement and to be more successful in their daily financial lives.”
The Financial Life Benefits Impact Report explores employee usage and engagement with workplace financial benefit programs and solutions, including for retirement, health savings, equity compensation and overall financial wellness. Insights revealed are as of December 31, 2020, and are based on more than 3 million participants in 401(k) plans administered by Bank of America.
“The future of workplace benefits needs to combine highly personalized solutions with a seamless, digital experience – allowing plan sponsors to provide relevant guidance and meet employees right where they are,” said John Quinn, managing director, head of Institutional Retirement Products and Platforms at Bank of America. “At Bank of America, our goal is to partner with employers to provide wellness programs that address the diverse needs of their workforce and help employees be financially successful today and in the future.”
Bank of America’s Retirement & Personal Wealth Solutions organization serves more than 26,000 companies of all sizes and more than 5.7 million employees as of 12/31/202. Bank of America offers institutional client employees a range of financial benefit programs and solutions to help them pursue their financial future. Last year, the company launched Financial Life Benefits®, a comprehensive suite of workplace benefits and solutions bringing together traditional financial benefits – including retirement, health savings, equity compensation and non-qualified deferred compensation plans – with a corporate employee banking3 and investing4 offering that can help address employees’ everyday needs. Bank of America works with employers to deliver its Employee Banking and Investing (EBI) program, a packaged offering of services for everyday banking and investing needs, combined with exclusive rewards, financial education and dedicated support. The number of companies offering EBI doubled in 20205.
At Bank of America, we know that supporting the physical, financial and emotional wellbeing of our employees in their personal life also supports them in their work life — so they can be the best at work and at home. When it comes to financial wellness, we believe that the more informed people are about their money, the clearer their financial outlook can be. This applies not just to our clients, but to our employees, as well. This is why we offer robust financial offerings to our employees that focus on driving better behaviors across life priorities and the financial spectrum — budgeting, planning, saving, investing and more. Our competitive financial benefits – including 401(k) contribution matches, retirement advice6, health savings accounts7, educational resources and financial wellness tools – help employees address money issues in the here-and-now, prepare for retirement and help protect their family over the long term.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,900 lending centers, 2,500 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,300 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Bank of America is a marketing name for the Retirement Services business of Bank of America Corporation (“BofA Corp.”). Banking activities may be performed by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A., member FDIC. Brokerage and Investment advisory services are provided by wholly owned non-bank affiliates of BofA Corp., including MLPF&S, a dually registered broker-dealer and investment adviser and member SIPC.
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Don Vecchiarello, Bank of America
1 The Financial Life Benefits Impact Report is based off Bank of America’s proprietary 401(k) business, which comprises of $251 billion in total client assets and 3.1 million total participants with positive balances as of December 31, 2020.
2 Source: Global Wealth and Investment Management Finance.
3 Bank products are available from Bank of America, N.A., and affiliated banks.
4 Investment products are available from Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”).
5 Bank of America Employee Banking & Investing Program, 2020.
6 Investment advice on 401(k) assets is only provided to plan participants through certain investment advisory programs as directed by plan sponsors.
7 Made available through Bank of America, N.A.