Health insurance costs are cutting into retirement savings for more than half of employees, according to a LIMRA study released Tuesday.
Although many of the 2,000 employees surveyed stay in full-time work for the health insurance benefits, 59 percent of them still say they agree or strongly agree that what they pay for health insurance benefits directly affects how much they will put aside for retirement, according to LIMRA.
Between one quarter and one half of full-time employees experience high levels of financial stress, according to the study. Of those who are stressed about their benefits, health insurance causes the most concern and other benefits are of less concern, LIMRA says.
Those with the least amount of concern about their benefits are the most likely to think about their retirement plans “very often,” the survey says.
Nearly 20 percent say financial stress takes a toll on their relationships and their health. One in eight says financial stress hurts their ability to concentrate at work.
Fifty-four percent of employees have access to education programs on benefits and nearly three-quarters of employees with access take part in the programs, Limra says.
Employer assistance that is strictly for retirement planning is available to nearly 60 percent of employees and more than half take advantage of this help. Sixty percent of employees say they would be interested in financial education topics not currently offered by their employer, such as debt management, avoiding scams and general budgeting. Employees expressed higher satisfaction with these programs than with other financial education topics, LIMRA says.