Data and Research October 20, 2015

Health Care Costs Impact Retirement Savings

Those with the highest financial stress levels worry most about health insurance.
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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.

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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.

Data and Research October 20, 2015

COUNTRY Financial Indexes Americans' Fears

Retirement and health care are Americans’ biggest financial fears, followed by affording their rent or mortgage.
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The biggest financial fears keeping Americans up at night are being able to retire comfortably, cited by 30%, followed by health care expenses (19%) and affording their rent or mortgage (11%). Financial issues are so critical to Americans that 59% said they would rather discuss “the birds and the bees” with a stranger than their own financial situation. Among women, this jumps to 63%, compared with 55% of men. This is according to the latest COUNTRY Financial Security Index.

For those 65 or older, health care is the biggest worry, cited by 43%, followed by affording rent or mortgage and a child’s education. On the other end of the spectrum, Millennials are focused first and foremost on their job security, then paying for housing and being able to retire comfortably.

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“As Americans meet financial goals throughout their lifetime, they have less financial hurdles to worry about,” says Joe Buhrmann, manager of financial security at COUNTRY Financial. “However, even at earlier stages in life, it’s important to take a long-term view and make sure to plan ahead for retirement and health care expenses, as these concerns become front of mind at older ages.”

Overall, 83% of Americans have some kind of anxiety about their finances. For these people, COUNTRY Financial recommends that they create a budget, contribute to an emergency fund and start saving early. “Taking a long-term view and having a game plan can really provide a solid sense of security,” Buhrmann says.

The COUNTRY Financial Security Index is based on a survey of 1,000 adults conducted by GfK.

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