More than four in ten employers, 43 percent, say the Patient Protection and Affordable Care Act has affected their retirement benefits strategy and spending, while 45 percent believe the healthcare reform law will change their retirement strategy and spending in the future, according to a LIMRA Secure Retirement Institute study released Thursday.
Fifty-five percent of those who think the PPACA has changed their retirement benefits plans said they are spending less on retirement benefits and shifting costs to workers, while 42 percent said they are spending less time evaluating their retirement plans.
"Employers have limited resources to use to manage their employees' comprehensive benefits package. The added complexity and costs of health care are definitely taking a toll on employers' ability to manage their retirement savings plans," said Alison Salka, corporate vice president and director of LIMRA SRI Research, said.
"As a result, employers are looking for more support from the industry to help them provide a comprehensive retirement savings program for their employees."
In addition, employers said that devoting more of their benefits budget to health care decreases the amount spent on their retirement plans.
Sixty-three percent of those employers who think the PPACA will affect their retirement plan strategies and spending in the future believe it will mean less money spent on retirement plans.
Previous LIMRA SRI research showed that access to a retirement savings plan at work has a major impact on a worker's ability to save for retirement and their retirement readiness.
"For many American workers, their employer-sponsored retirement plan is the primary way they save for retirement," said Salka.
"Our findings about the impact of the PPACA underscore the opportunity for plan providers and advisors to help employers better manage the challenges associated with their retirement plans."