At a glance
- The two figures describe different groups: the deferral cut is measured among workers whose premiums went up, while the 17% is the share of workers reporting an increase above that threshold.
- For plan sponsors and the DC advisers who serve them, that is a deferral-rate problem.
- Whether the deferral cuts hold after the premium resets, or are reversed at the next open enrollment, is the part of the picture a plan's own payroll data would show.
One in eight workers whose health insurance premiums rose cut how much they save in their retirement plan, according to a LIMRA survey reported by 401(k) Specialist.
About half of the workers facing higher premiums changed a benefits decision, the survey found, and 17% of workers had premiums jump more than 10%. The two figures describe different groups: the deferral cut is measured among workers whose premiums went up, while the 17% is the share of workers reporting an increase above that threshold.
For plan sponsors and the DC advisers who serve them, that is a deferral-rate problem. Health insurance premiums are a benefits cost that competes with retirement contributions, and the survey puts a number on how often the retirement side gives way.
Whether the deferral cuts hold after the premium resets, or are reversed at the next open enrollment, is the part of the picture a plan's own payroll data would show.
One in eight workers cut retirement saving as premiums rose
Share of workers facing higher health premiums, by response, LIMRA survey
Reported by The Wrap desk from 401(k) Specialist, reporting a LIMRA survey. Published . Corrections