Benefits May 24, 2007

Workers Ready to Play Role in Health Cost Containment

May 24, 2007 (PLANSPONSOR.com) - Even as health care costs continue their upward spiral, most workers say they are ready to live healthier lives to help control their treatment bills and so they can enjoy a healthier retirement.
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A Watson Wyatt news release about its survey of nearly 2,100 U.S. workers said the poll found that more than half (51%) of respondents are highly concerned that they won’t be able to pay for health care coverage when they retire.

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More than one-third (35%) of respondents are concerned that a major medical expense would lead to their financial ruin. Many workers are also worried about the impact of rising costs in the near term. Two in three (68%) believe their deductibles and copayments will increase in the next two years; more than half are worried that their employer will reduce their health benefits coverage.

According to the survey, 12% of workers have reduced contributions to their retirement savings plans because of higher health care costs, while 18% have cut back on contributions to other savings. About one in four workers also reported higher stress levels due to rising health care costs.

The majority (61%) of workers say they see a connection between maintaining a healthy lifestyle and controlling cost increases. Moreover, many employees are willing to make changes in their lifestyle to improve their current health status – 31% are in the process of doing so, and 27% are considering making a change.

The survey found that six in ten employees have tried to take better care of themselves, with 37% getting an annual physical. In addition, 42% are attempting to control health expenditures by choosing a lower-cost drug option when available.

The Watson Wyatt survey, “Employee Perspectives on Health Care: Voice of the Consumer,” was conducted in January 2007. A total of 2,099 randomly selected workers participated in the survey. All respondents were full-time U.S. employees of large, nongovernmental companies who participate in their employer-sponsored health plan.




Benefits May 23, 2007

'Echo Boomers" Fret about Retirement Nest Egg Size

May 23, 2007 (PLANSPONSOR.com) - More than seven in 10 Echo Boomers worry about not having enough of a retirement nest egg - a concern shared with their Baby Boomer counterparts (78%), according to a new survey.
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A Visa USA news release said the study also found that 80% of Echo Boomers ( born 1979 to 1989) stick to a strict budget when making purchases and 81% describe themselves as trying to cut back on what they spend. Nearly half of Echo Boomers (48%) describe themselves as savers.

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The study reveals that Echo Boomers, who believe they are facing a difficult economic future, are demonstrating a more practical and mature approach to spending beyond their years, according to the news release.

According to the survey, when asked to compare their peers to members of other generations, 65% of Echo Boomers believe their generation is falling behind economically and 81% do not believe their generation is spending more responsibly.

Although Echo Boomers have been characterized as a generation too focused on its own wants and needs and unmindful of others, survey data suggests that they view spending as a way to give back to others, particularly family members and charities. Some 88% of Echo Boomers like to buy things for others more often than buying things just for themselves.

Other survey results include:

  • Echo Boomers (77%) more often feel the need to manage their spending better than Baby Boomers (66%).
  • Nearly half of Echo Boomers (49%) think they do not have a better life compared to other generations.

How America Spends was conducted by The Segmentation Company (TSC) between February 22, 2007 and March 12, 2007. The study included 1,000 interviews (500 Echo Boomers; 500 Baby Boomers) via telephone.

More information on the survey is here .

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