Taking the pulse of Americans

Americans feel uncertain about both the present and future, according to a recent Bank of America consumer survey.¹ The pace at which the country is emerging from COVID appears to be slowing, leaving consumers wondering: Is this our new normal? Additionally, inflation-induced budget tightening is preventing some people from doing things they enjoy, such as dining out and traveling, and is influencing their overall financial decisions.

7 in 10 working Americans are concerned the cost of living is outpacing their growth in salary.²

40% worry that with the current rate of inflation, they won’t be able to make ends meet.³

Consumers are cautious about spending

Inflation is causing many to carefully review their spending and reassess what is important, ensuring budgets are in line with priorities. Younger Americans who have longer financial horizons (and perhaps less financial responsibility) tend to be more confident about spending. But even among them, less than half say they are confident. Confidence is particularly low for investing, taking out a loan and buying a new home.

Workers’ desire for flexibility influences career decisions

While working in the office is starting to normalize, many Americans still prefer a hybrid work environment. Working from home saves time and money and provides flexibility, while the office enables greater collaboration. As this societal trend continues, we’ll see a fundamental lifestyle divide, impacting day-to-day choices and career trajectories.

In fact, many are choosing to leave the workforce. More than half of those who left or changed jobs during the pandemic were younger Americans between the ages of 18 and 34. They made the change to pursue a better opportunity or a job that provides more flexibility to do other things in life.

Key takeaways

Consider offering employees the opportunity to participate in educational workshops that address current financial issues and suggest actions to help improve financial wellness. You can access a library of resources on our Employee Communication Center, or reach out to your Bank of America representative for guidance.
Review your benefits programs with your Bank of America representative to identify opportunities and strategies to support employees’ financial needs and strengthen workforce retention.
Keep an eye out for our 2022 Workplace Benefits Report, scheduled for release the week of September 26, for additional insights and actionable takeaways for employers.

¹ Source unless otherwise noted: Bank of America Navigator, Issue #28 (Fielded: 5/2/22–5/6/22). Surveys conducted among general consumers (clients and prospective clients). As online panels are sourced (Bank of America Customer Advisory Panel and third-party research panels), certain populations will not be represented (i.e., consumers who are not online, unbanked consumers, etc.).

² Bank of America 2022 Workplace Benefits Report, July 2022 pulse survey.

³ Bank of America 2022 Workplace Benefits Report.

Bank of America 2022 Workplace Benefits Report, February 2022, methodology: Escalent surveyed a national sample of 834 employees who are working full-time and participate in 401(k) plans, and 846 employers who offer both a 401(k) plan and have sole or shared responsibility for decisions made in the plan. The survey was conducted between February 3, 2022 and February 28, 2022. To qualify for the survey, employees had to be current participants of a 401(k) plan and employers had to offer a 401(k) plan option. Neither was required to work with Bank of America. Bank of America was not identified as the sponsor of the study.

Bank of America 2022 Workplace Benefits Report pulse survey, July 2022, methodology: Escalent surveyed a national sample of 478 employees who are working full-time and participate in 401(k) plans. The survey was conducted between July 5, 2022 and July 19, 2022. To qualify for the survey, employees had to be current participants of a 401(k) plan. They weren’t required to work with Bank of America. Bank of America was not identified as the sponsor of the study.