- The majority of employers, 68 percent, identified providing employees access to a greater array of benefits and supporting employee choice and flexibility as the main reasons for offering voluntary benefits. “Workers are taking more accountability for their own future, preferring to pick and choose their benefits based on their specific needs and costs, SRHM 2014
- Voluntary benefits is recognized by employers, with over half (51%) reporting they are currently implementing or have already implemented offering more voluntary products, up from 32% in 2012 and expected to grow even more. Similar to employees, cost remains the biggest perceived advantage from the perspective of employers. SHRM 2014
- For employers that have already ramped up their voluntary benefits offerings, 49% report they have been successful in achieving their desired cost savings, up from 28% the year before. Voluntary benefits offer employers the ability to maintain a competitive and valuable benefits package in a cost-effective way. The convenience of voluntary benefits along with offering employees economical options are cited as advantages by employers.
Prudential’s Eighth Annual Study of Employee Benefits ‘14
- Today, America’s elderly are living longer and the cost of health care is rising dramatically. Those two factors are going to make it incredibly expensive to take care of all of these retiring Baby Boomers.Meanwhile, the sad truth is that the vast majority of Baby Boomers have not adequately saved for retirement. For many of them, their home equity was destroyed by the recent financial crisis. For others, their 401ks were devastated when the stock market tanked.Meanwhile, company pension plans across America are woefully underfunded. Many state and local government pension programs are absolute disasters. The federal government has already begun to pay out more in Social Security benefits than they are taking in, and the years ahead look downright apocalyptic for the Social Security program.If we are not careful all of these Baby Boomers are going to push us into national bankruptcy. We simply cannot afford all of the promises that we have made to them.