Inflation Is Driving Workers to Review Benefit Choices

According to new Voya research, 70% of American employees surveyed expect to spend additional time reviewing their benefit selections because of inflation this open-enrollment season.

“With inflation at record levels not experienced in decades, the financial stress caused by increasing prices is taking a toll on American workers,” Rob Grubka, CEO of health solutions at Voya Financial, said in a statement. “With the fall open enrollment season approaching for millions of Americans, it’s encouraging to see that workers intend to carve out more time to focus on reviewing all the workplace benefits offered by their employers to help optimize every hard-earned dollar.”

The research found that 74% of workers feel more stressed about their personal financial situation because of inflation, compared with 66% in March, and 70% of employees want support from their employer to make the optimal benefits selections across retirement savings, health care, health savings accounts and voluntary benefits like critical illness, hospital indemnity, disability income or accident insurance.  

“For employers and benefits providers, this presents a tremendous opportunity to work together to help simplify and personalize the annual enrollment experience so employees can act with confidence in how they allocate their next dollar,” Andrew Frend, senior vice president of strategy and product at Voya health solutions, said in a statement. “In addition to year-round education and communications efforts, innovative solutions and technology can be a game-changer.”

The research also found that 88% of Americans surveyed said widespread effects from inflation—38% cited the rising cost of food and groceries, 35% cited increasing gas prices and 15% said the cost of housing—are what worries them the most.

Inflation’s effects have also driven some employers to alter their budgets for medical and voluntary benefits spending this open-enrollment season—often held in the fall or near the end of the calendar year—when workers select benefits for the year.

The Voya survey was conducted online from June 17 to 21 by Ipsos. Data was gathered from 1,005 adults, including 495 U.S. workers over age 18.

Throughout the COVID-19 pandemic, Voya surveys have collected consumer insights examining how Americans are feeling about their personal finances, student loan debt, workplace benefits, retirement plans and other benefits and savings topics.