How can employers boost employee engagement in workplace retirement plans?
June 9, 2025 | 5 minute read
A majority of employees think saving for retirement is a high priority1
Chances are most of your employees keep retirement high on their list of financial priorities. And as their employer, you’re uniquely positioned to help them make progress toward their retirement savings goals. Not only by offering a workplace retirement plan, but by making sure they understand all the ways getting actively involved in preparing for their financial futures can benefit them.
Preparing for tomorrow can provide potential benefits today
Of course contributing to a workplace retirement plan will help employees in the future. But there are also plenty of benefits employees can enjoy right now.3
- Employee contributions can reduce current taxable income.
- Pre-tax contributions and any investment gains are not taxed until distributed.
- Contributions are easy to make through payroll deductions.
- Retirement assets can be carried from one employer to another.
- The saver's credit may be available to some employees.
Promoting financial wellness
Nearly 90% of plan sponsors believe providing financial wellness tools leads to greater employee satisfaction, retention and productivity.4 That’s why offering your employees financial wellness insights and education is a smart move for your business.
Source: 2025 Bank of America Workplace Benefits Report Survey
And while most small companies feel extremely or somewhat responsible for their employees’ financial wellness, fewer than half offer financial wellness programs.5
Source: 2025 Bank of America Workplace Benefits Report Survey
To help you offer financial wellness education to your employees, there are a number of informative, effective tools and resources available. Some of these tools include:
- The Benefits OnLine® Education Center, an online resource providing content that covers a wide spectrum of needs, spanning from in-depth reads to quick videos.
- Better Money Habits®, a free, easy-to-use educational hub that can help employees achieve their financial goals with articles, videos and tips.
- Integrated accounts to give your employees a clear view of their broad financial picture across banking6 and investing,7 all in one place.
With the right program, you can then create a strategic communications plan to boost employee knowledge, enrollment and engagement.
Other benefit solutions to consider
With additional benefits offerings, you can create a holistic benefits program to help keep your employees healthy, happy and more financially prepared.
Health savings account (HSA)8—An HSA allows your eligible employees to save pre-tax dollars for future health care expenses. It works with all HSA-eligible health plans that typically offer lower monthly premiums than traditional health insurance plans, thereby saving you and your employees money.
Flexible spending account (FSA)—An FSA enables employees to set aside pre-tax dollars to help pay for qualified medical expenses that occur during a particular year.
Health reimbursement arrangement (HRA)—An HRA lets you fund accounts for your employees to help them pay for qualified medical expenses not covered by their health plans. It can be paired with an FSA.
Lifestyle spending account (LSA)—An LSA lets you design a customized post-tax benefit for your employees that promotes healthy habits and overall well-being. Funds in an LSA can typically be used for things like gym memberships, retreats, personal development courses, spa services and even utility bills.
Commuter benefits—This valuable benefit allows employees to set aside pre-tax dollars to pay for expenses related to commuting to and from work—including mass transit, vanpooling and work-related parking.
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Find out how our experienced team can help you build a benefits plan that truly fits your business's needs.
1 2025 Bank of America Workplace Benefits Report Survey.
2 See note 1, above.
3 www.irs.gov/retirement-plans/plan-sponsor/benefits-of-setting-up-a-retirement-plan
4 See note 1, above.
5 See note 1, above.
6 Investment products are available from Merrill Lynch, Pierce, Fenner & Smith Incorporated.
7 Bank products are available from Bank of America, N.A., and affiliated banks.
8 Bank of America, N.A. makes available The HSA for Life® Health Savings Account as a custodian only. The HSA for Life is intended to qualify as a Health Savings Account (HSA) as set forth in Internal Revenue Code section 223. However, the account beneficiary establishing the HSA is solely responsible for ensuring satisfaction of eligibility requirements set forth in IRC sec 223. If an individual/employee establishes a HSA and s/he is not otherwise eligible, s/he will be subject to adverse tax consequences. In addition, an employer making contributions to the HSA of an ineligible individual may also be subject to tax consequences. We recommend that applicants and employers contact qualified tax or legal counsel before establishing a HSA. Bank of America does not sponsor or maintain the Flexible Spending Accounts (FSA)/Health Reimbursement Accounts (HRA) that you establish. The programs are sponsored and maintained solely by the employer offering the plan, or by an individual establishing an independent plan. Bank of America acts solely as claims administrator performing administrative tasks pursuant to an agreement with, and at the direction of, the sponsoring employer or individual under an independent plan. The sponsoring employer or individual under an independent plan is solely responsible for ensuring such arrangements comply with all applicable laws.
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