Employees in plans serviced by Bank of America's retirement business are increasing their use of health savings accounts and boosting their retirement savings, the bank said Thursday.
The Bank of America Merrill Lynch 401(k) Wellness Scorecard found that not only are these employees increasingly taking advantage of workplace benefits, but automated features and mobile participation are both helping with employee engagement.
HSA usage grew 33 percent during the first six months of the year, with more than 384,000 workers in these plans utilizing these tax-advantaged vehicles to prepare for their medical expenses.
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While millennials increased their numbers by 40,000 in 401(k) plans during the first half of 2014, 23 percent are also starting to use HSAs, the report said. HSA usage remains higher among boomers, 38 percent, and GenXers, 39 percent.
The study also found that auto features are on the rise. As of June 30, the number of BofA Merrill Lynch 401(k) plans combining auto-enrollment and auto-escalation grew 19 percent over the previous 12 months compared to one year earlier.
Nearly all employers (94 percent) that added auto enrollment during the first half of this year also added auto-escalation, compared to 50 percent during the same period last year.
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