Health Care Costs Impact Retirement Savings

Fifty-nine percent of workers say that their health insurance costs impact what they are able to set aside for retirement, according to a LIMRA study on financial stress. Workers with the highest stress levels spend the most time thinking about their health insurance. On the other hand, those with the least amount of financial stress are most focused on their retirement plans.

Nearly 20% of employees said their personal financial situation took a toll on their relationships and their health, but only 12% said financial stress hurt their ability to concentrate at work.

Ninety-five percent of employees believe financial literacy is important, yet only 28% are very confident in their ability to make important financial decisions.

Thus, it is no surprise that some employers believe their workers’ financial distractions can affect their bottom line, and they are in favor of financial education programs in the form of financial wellness programs to reduce sick leave and increase worker productivity. LIMRA found that employees who attend such financial wellness programs like them and report lower financial stress. Sixty percent would even like their employer to offer additional financial topics.

Currently, 64% of employees have access to education programs on employee benefits such as medical and health. Since this information is typically presented at enrollment meetings, nearly three-quarters of employees take part in these programs.

Assistance for retirement planning is available to nearly 60% of employees, and more than half take advantage of these programs. Only a quarter of employees are offered programs such as debt management, avoiding scams and general budgeting, yet these are the highest rated financial education programs.