More Americans focus on 401(k) plans

Despite some reports that Americans are not saving as much as they should, a new financial scorecard shows that a growing number are taking advantage of 401(k) plans and other tools.

The most recent Bank of America Merrill Lynch 401(k) Wellness Scorecard, released today found that 78% of those who made a move regarding their 401(k) plans

in 2014 did something positive, such as starting to contribute or increasing the amount they put in.

The overall number of people contributing to those savings plans rose 18% last year. But the spike among Millennials was particularly significant, with that age group seeing a 64% jump in the number setting money aside in a 401(k) last year.

"After the financial crisis, it was difficult for some Millennials to find work, or if they did find work, it was perhaps not allowing them to think longer term about financial wellness,'' says Steve Ulian, managing director within Bank of America Merrill Lynch's institutional retirement business.

He adds that conventional wisdom also believes Millennials are skeptical of institutions. "To see a 64% jump ... I think that's a telltale sign, certainly moving away from the financial crisis, that perhaps Millennials are getting a little bit firmer footing in their financial lives and starting to think a little more long term.''

Eric Roberge, a certified financial planner whose firm specializes in serving Millennials, attributes their increasing use of 401(k) plans to the financial education many are able to access online. "Whether it's online financial publications, blogs or social media websites, Millennials are learning the basics,'' he says. "I find that almost every Millennial I speak with understands the benefit of at least contributing enough to receive the employer matching contribution. They know that this is basically free money and they should not leave it on the table.''

Several recent studies have shown that Americans are lagging when it comes to saving, sparking concerns that they may not have what they need to retire or even to make it through nearer-term emergencies.

But the scorecard findings, based on Bank of America Merrill Lynch's 2.5 million 401(k) plan participants, could be an indication that the tide is starting to turn.

"I think the jury is still out,'' Ulian says. However, "if you take these data points in connection with some of the other data points, you do start to see a trend in the right direction, for people being able to take a longer term view of their financial situation.''

With more companies offering health care plans with high deductibles, a growing number of employees are also taking advantage of health savings accounts, which allow money to be put aside, tax free, for medical expenses.

BankofAmerica Merrill Lynch found that there was a 36.7% rise in the number of new health savings accounts between 2013 and 2014.

A gradually improving economy, and ubiquitous messages emphasizing the need to shore up financially are likely sparking some of the increased use of these various savings tools.

"I think the financial crisis is receding,'' Ulian says. "You just have look at the unemployment rate coming down, consumer confidence increasing. I think that's an absolutely critical criteria for people to think longer term. ... And you have an incredible amount of focus on this topic across the board that is driving people to think, and think very seriously, about their long-term financial future.''