EMPLOYEE BENEFITS CONCEPT
U.S. employees are being asked to make high-stakes decisions about their household finances — choosing health plans, for example, or setting retirement contributions — without the clarity, support, or tools they need to choose wisely. Although these decisions have a direct impact on long-term financial outcomes, many workers are left guessing their way through the process. Some may not even know the meaning of terms like “deductible,” “coinsurance,” or “employer match.”
That’s one troubling takeaway from a new report issued by SAVVI Financial, a provider of data-driven financial guidance solutions. Appropriately titled “Blindfolded Benefits: What’s holding employees back from better financial outcomes?” the report includes insights from more than 600 full-time workers who have access to employer-sponsored benefits.
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These are three other key findings:
- 37% of employees avoid thinking about benefits and retirement entirely — not because they don’t care, but because they feel too overwhelmed to engage.
- 39% haven’t calculated how much they need in order to retire comfortably, which means they haven’t begun making choices to solidify a successful future.
- Among employees who say they spend too much money on health insurance each month, 42% are delaying major life milestones. This includes putting off buying a home (36%), starting a family (15%), and getting married (9%).
“This isn’t just a knowledge gap — it’s a crisis of confidence,” SAVVI Financial President Brian Harrison said in a statement. “We’re asking people to make complex financial decisions that directly impact their health, families, and futures, and then giving them a broken process and zero guidance. It’s no wonder employees are tuning out or making costly mistakes. Our goal with this research and beyond is to show employers how they can better support their employees — and how to start.”
What employers can do
The good news, according to the report, is that employees also revealed what they need from their employers in order to feel comfortable in the benefits selection process.
Here’s a rundown:
- 79% say they would be more engaged in the process if they had year-round access to financial guidance.
- 68% want recommendations personalized to their financial situation.
- 84% say they would review their benefits more carefully if the process were simplified.
- 60% of those who struggle with plan comparisons say open enrollment doesn’t provide enough time.
“For too long, employers have treated benefits like a seasonal task,” Harrison said. “But the financial implications of these decisions don’t stop after open enrollment. People want to understand how their choices affect their paycheck, their savings, and their future — and they want that support year-round.”
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