American consumers feel more optimistic about their financial well-being, but this optimism is more pronounced among men than women, according to the Bank of America.

The Bank of America Workplace Benefits Report revealed 47% of workers feel “financially well up”,  which represents an increase from 42% at the same time last year.

Meanwhile, only 53% of employees are concerned that economic uncertainty will affect their long-term retirement savings, which is a decrease from 63% in 2023.

According to the report, more employees are feeling confident about their financial situation as they are taking more proactive steps to improve their financial wellness.

For example, 62% of workers reported they have limited their expenses, 43% have paid down debt and 41% have added to emergency funds.

However, the gap in financial wellness between men and women has continued to grow as 53% of men reported good financial wellness, compared to only 36% of women.

The widening gap could be due to the fact only 44% of employers currently address pay equity.

The report also found that inflation concerns have remained as 76% of workers reported the cost of living is outpacing growth in their salary or wages, which is a rise from 67% in June 2023.

Worries of securing financial stability in retirement also remain persistent as most Americans drastically underestimate the cost of health care in retirement, according to the report.

On average, a retired 65-year-old couple would require more than $350,000 in savings to cover their retirement savings. But only 7% of employees think their yearly health expenses could total $10,000.

As a result, the number of employees that have prioritized long-term retirement savings has gradually increased from 31% in 2023 to 33% in 2024.

Lornia Sabbia, head of workplace benefits at Bank of America, said: “Despite concerns about the cost of living and plans to limit expenses, more employees are feeling confident about their financial well-being.

“However, there is still work to be done to address gender equity, as women continue to report much lower financial wellness scores than men.”