New LIMRA research reveals that 59 percent of workers agree or strongly agree that what they pay for medical/health insurance benefits directly affects how much they will put aside for retirement.
That finding is part of a larger study on financial stress among employees that estimates between a quarter and half of full-time employees experience high levels of financial stress.
While 95 percent of employees say financial literacy is important, only 28 percent are very confident in their ability to make important financial decisions.
As it pertains to benefits, workers with the highest financial stress levels spend the most time thinking about their health insurance and the least amount of time on other benefits. By contrast, those with the least amount of financial stress are most likely to think about their retirement plans “very often.”
In looking at the impact of financial stress, nearly 20 percent of employees said their personal financial situation took a toll on relationships and on their health. Only 1 in 8 said financial stress hurt their ability to concentrate at work.
On the other hand, some employers believe their workers’ financial distractions are significant enough to affect the bottom line. Employers favor education in the form of financial wellness programs. They believe financial education programs can deliver ROI similar to health wellness programs by reducing sick leave, disability, etc. and increasing worker productivity.