1 Bank of America 2019 Workplace Benefits Report, September 2019. 2 2018 Employer Health Benefits Survey, Kaiser Family Foundation, October 2018. 3 EBRI Issue Brief 460, October 2018. 4 Investing involves risk, including possible loss of principal value invested. 5 McKinsey, “Delivering Through Diversity”, January 2018 and Deloitte Review, Issue 22. “The diversity and inclusion revolution: 8 powerful truths”, January 2018.

Escalent conducted an online survey with a national sample of 996 employees 804 employers who responded between February 1, 2019 and February 26, 2019. To qualify for the survey, employees had to be current participants in a 401(k) plan and employers had to currently offer a 401(k) plan; the plans did not have to be provided by Bank of America. Bank of America was not identified as the sponsor of the study.

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 services are provided by wholly owned brokerage affiliates of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”), a registered broker-dealer and Member SIPC.

Investment products:

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

© 2019 Bank of America Corporation. All rights reserved. | AR3T9YSB | 09/2019

To see all the findings from this year’s study, download the full 2019 Workplace Benefits Report at baml.com/benefitsreport or speak with a Merrill advisor.

retirement & benefit plan services

2019 Workplace Benefits Report Bank of America speaks to employers and employees about a range of topics that can affect feelings of financial wellness. The health and wellness of employees can have a profound impact on a business, so we share our insights to empower employers to take a more proactive role in helping employees live their best financial lives.

The majority of employees feel financially well

Poor or Fair

2019

Average Good or Excellent

16% 29% 55%

And the feeling of financial wellness comes from when they feel that they:

Can effectively manage day-to-day expenses

Feel savings for retirement are on the right track

Are able to pay bills and save for future goals

Unfortunately, women continue to lag in financial wellness

65% 43%

Men Women

Men Women

$100,000 $30,000

Median retirement savings

And women have far less saved for retirement

Women are less likely to say they feel financially well

Employee emotions and company health are intertwined

Employee financial wellness can have a direct impact on a company’s bottom line and can be affected by a wide range of factors. In 2019, Bank of America broadened our study to look at three emerging areas that we believe contribute directly to employees’ feelings of well-being, and therefore company performance.

Health Savings Accounts (HSAs) can help employees manage healthcare expenses now and in the future

Yet understanding of HSAs is lacking among employees and employers

Caregiving is more prevalent than employees recognize

To address these challenges, employers should promote the realities of growing healthcare costs and planning options, like an HSA, that can help employees better manage these expenses.

To tackle these challenges, employers can create a “culture of caring” from the top down by bringing the caregiving conversation out into the open so caregivers understand what support they have and feel confident asking for help when they need it.

Healthcare costs are a challenge for employees… … and we believe will continue to be in the future

Employees’ ability to manage

healthcare costs

Employee obligations as a caregiver

outside of work

Employee feelings about having a diverse and inclusive workplace

$5,547 Health insurance

premiums2

$2,138 Out-of-pocket

expenses1

$7,685 Total average

annual expenses1,2

In retirement, a 65-year old couple will need

$296,000 to cover their

out-of-pocket healthcare costs.3

Projected healthcare-related expenses

in retirement have increased

23% in the last 4 years.3

The burden continues past an employee’s working years

Pre-tax contributions, potential gains and withdrawals used for qualified medical expenses are exempt from federal and most state taxes.

Any unused balance carries over from one year to the next.

HSA funds can be invested to provide growth potential over time to help supplement long-term savings for healthcare expenses.4

There is no time limit on when to use HSA funds — the funds never expire and can be passed to a beneficiary upon death.

Say they

have a good

understanding

of HSAs

57%

Correctly

identified 4

basic attributes

of HSAs

11% Correctly

identified 4

basic attributes

of HSAs

7%

Empl

o y ee Say they

have a good

understanding

of HSAs

65%

Empl

o y er

55% of employees are

not caregivers

23% of employees identify as a

caregiver

22% of employees perform caregiving activities, but do not identify as

a caregiver

And caregiving is about more than taking care of children

Taking care of children

Taking care of other adults 78%

20%

Annual out-of-pocket expenses

Child caregivers

Non-child caregivers $3,263

$6,604

Women are more likely to be serving as caregivers

Percentage of women who are caregivers

Percentage of men who are caregivers 39%

51%

Caregiving also has a measurable demand on a caregiver’s time and finances

And while many employers offer support, not all employees are aware or take advantage

59% of employees who take care of children spend more than 20 hours a week doing so

34% of employees who take care of other adults spend more than 20 hours a week doing so

But only 29% of employees are aware that their employer offers these resources

And only 34% of caregiver employees have taken advantage of these employer resources

88% of employers offer some type of caregiving resources for their employees

While many employers offer diversity and inclusion programs, there is still progress to be made

of employers offer diversity and inclusion programs

of employers are considering offering diversity and inclusion programs in the future

Only 49% of employees who are aware of the diversity and inclusion programs at their workplace participate

51% 27%

To support employee feelings of inclusion, employers should take steps to expand both the availability and use of diversity and inclusion programs in the workplace.

Diverse workplaces with inclusive cultures are shown to experience:5

• Higher employee satisfaction

• Ability to win and retain top talent

• Enhanced innovation

• Improved customer-orientation

Employers in the survey noted the key benefits from offering diversity and inclusion programs are that:

• They are the right thing to do

• They build a strong company culture

• They improve brand image

• They are important for retaining current talent

• They are necessary for keeping up with the industry

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