Will Health Cost Concerns Trump Retirement Savings?
A new survey finds that most employers are concerned that the rising cost of health care will lead workers to cut back on retirement savings — and see a holistic approach to both as a potential solution.
Health care cost concerns are a growing concern for employers and workers alike, but a new survey by Manning & Napier
finds that a majority (79%) of employer respondents are concerned that employees will cut back retirement contributions due to the rising cost of health care.
The survey found that 39% of businesses are interested in transitioning to a defined contribution plan for both health and retirement benefits, and more than half (55%) believe that they will make the transition to a plan for both health and retirement benefits in one to three years.
Perhaps as a result, 61% of business owners and HR professionals agree that 401(k) vendors will need to provide an integrated tool to help participants navigate health and wealth planning decisions.
The survey noted that the top concern in developing an employee benefits strategy is cost (74%) followed by the employer contribution amount (49%).
The survey received 404 respondents consisting of U.S. small business owners, business managers and HR professionals (businesses of 1-5,000+ employees). It was conducted between July and August 2014.