Benefits June 27, 2016

LGBT Employees Reevaluating Workplace Benefits

However, 50% of all LGBT employees and nearly 40% of those who are married or in a domestic partnership are not aware of ways in which last year’s marriage equality ruling affects their benefits, a Lincoln Financial Group study found.
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More than one in four (28%) LGBT employees overall, and one-third (35%) of those currently married or in a domestic partnership, have either reevaluated their workplace benefits, enrolled in a new benefit, or increased their contribution to an existing benefit as a result of the marriage equality ruling last year, according the first segment of results from Lincoln Financial Group’s 2016 M.O.O.D (Measuring Optimism, Outlook and Direction) of America on Employee Benefits study.

LGBT enrollments in non-medical coverage—such as life, dental, and disability insurance—show the highest levels of change as a result of the ruling. Fourteen percent of LGBT employees who are married or in a domestic partnership have enrolled in a new non-medical insurance plan. Eleven percent have enrolled in a new health insurance plan, and 7% have either enrolled in a new retirement plan or increased contributions to their current plan.

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“These employees are looking at the big picture. They’re not just thinking about the most familiar benefits, such as medical insurance,” says Eric Reisenwitz, head of product and operations for Lincoln’s group benefits business. “As a result of the ruling, LGBT employees are reevaluating ancillary coverages that can help protect themselves and their families—for example, disability and life insurance. These types of benefits help employees prepare for the unexpected, giving them a better sense of overall security and financial well-being.”

Although many LGBT employees are taking action in response to the ruling, not all are aware of its implications to their benefits. Fifty percent of all LGBT employees and nearly 40% of those who are married or in a domestic partnership are not aware of ways in which the marriage equality ruling affects their workplace benefits.

“Many LGBT employees are engaged and taking action with their benefits, which is great to see,” says Lisa Buckingham, chief human resources officer at Lincoln Financial Group. “However, there’s still room for employers to boost these numbers. When we have a major legal change like this, employers need to proactively educate their employees on its effects. If we can help an even greater percentage of LGBT employees understand the ruling’s implications, they will be able to truly get the most value out of their benefits packages and take charge of their financial futures.”

Lincoln Financial’s larger M.O.O.D. study is slated to launch in August.

Data and Research June 27, 2016

Americans Feel a Downside of Living Longer

Fifty-one percent of Americans surveyed identified “having enough money to last my whole life” as a very big problem when they thought about living to age 100.
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While Americans are optimistic about the prospect of living an average of 30 extra years, 70% feel financially unprepared to live to 100 and beyond, according to The Gift of Time, a new study from Allianz Life Insurance Company of North America.

Millennials and Generation X have time on their side when it comes to pursuing their dreams, but that gift comes with significant angst. More than three-quarters (79%) of Gen Xers reported feeling financially unprepared for living a longer life, while 74% of Millennials had the same concerns. Baby Boomers are not immune to worry either—57% reported that they feel financially unprepared.

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When respondents were asked to finish the sentence, “following your dreams is all well and good, but you need to have…,” the top two barriers chosen were “enough money” (57%) and “a good financial plan” (50%). The biggest regret reported (or potential future regret for Millennials) was not saving more money (52%) which ranked above not traveling more (38%) and not spending more time with their kids (32%).

As respondents considered their extra years, 45% said that “uncertainty” most closely described their feelings about the future. This uncertainty is echoed by the fact that more than half (51%) identified “having enough money to last my whole life” as a very big problem when they thought about living to age 100.

“The Gift of Time confirms that having a solid financial plan addressing longevity can remove major barriers for many Americans, allowing them to take risks that ultimately lead to a more fulfilled life,” says Allianz Life Vice President of Consumer Insights Katie Libbe.

NEXT: Solutions for planning for longevity and using a financial professional

The study also showed people’s awareness of solutions that could help.

According to the study, more than half (51%) of respondents believed they would need to better plan their spending and saving, or live more modestly to fund all the things they want to do in life. More than one-third (37%) even acknowledged that they may need to work longer/retire later to meet their financial needs. To make the most of their 30 extra years, respondents found it important to change the amount of money they save, how they fund their entire life (including short-term goals), and the level of discipline they need to follow a financial plan.

In addition to the solutions people identified when planning for longevity, the study found that having a financial professional could add support and reassurance. Respondents who had a financial professional reported being happier (79%) with their major life choices (such as their profession and when/where they worked or didn’t, etc.) compared to 64% of those who were happy with their major life decisions but did not have a financial professional. Despite that fact, the majority (72%) of respondents reported not having a financial professional. But these respondents would be more willing to seek one if the financial professional helped them find solutions that could create guaranteed income for life (47%), helped plan for and fund a longer life (34%), and helped with finances throughout life stages (31%).

Americans also support living life in a new, nontraditional order—especially if the barriers holding them back are addressed. When asked what got in the way of following a different approach for when and how they made major life decisions, “worries about money” was the top choice for 46%, “life events” got in the way for 33%, and 22% cited “lack of a clear plan for how to go about it” or “fear of failure” getting in their way. With the right longevity plan, people who avoid making alternative choices because of money could reconsider their future, as many respondents recommended doing. Sixty-five percent admitted that it was better to explore, experiment and travel earlier in life by changing when and how they learned, worked, married or raised kids. 

The Gift of Time found that instead of taking a traditional path (going to school, working, getting married, having kids and retiring), almost half (49%) of respondents were open to a nontraditional model that was unique to their interests.

For more information about the study, visit www.allianzlife.com/TheGiftofTime.

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