Benefit plan participants report mixed feelings on financial security

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Individuals enrolled in Bank of America client benefit programs reported an average financial wellness score of 50 out of 100 in the second quarter of 2024, the organization found in its quarterly Participant Pulse report. The score, which is based on factors like managing long-term debt and preserving assets, was on par with the first quarter of 2024 but down from the same period last year, BofA said.

A gender gap remains when it comes to feelings of financial wellness, the bank said, with men reporting a score of 53 and women a score of 46.

The report analyzes the behavior of the more than 4 million participants with positive account balances as of June 30, all of whom are enrolled in BofA’s clients’ employee benefits programs.

By the numbers

$93,054

Average 401(k) balance, up nearly 8% compared to the end of 2023

2.7%

Participants borrowing from their workplace 401(k) plan, up from 2.3% in the fourth quarter of 2023

0.67%

Participants who took a hardship distribution from their 401(k) plan, up marginally from 0.61% during the first quarter of 2024 and from 0.57% in the last quarter of 2023

$4,930

Average Health Savings Account balance, up from $4,380 during the fourth quarter of 2023

73%

HSA contributions spent on current healthcare expenses rather than saving for future needs, up from 61% in the first quarter of 2024

Clarification: This story has been updated to clarify details about the survey participants.