Helping Employers and Employees Navigate the Health/Wealth Convergence

Source: Manning & Napier, White Paper, February 2013

It is no secret that health care costs have been rising dramatically over the last ten to twenty years. Unfortunately, the strong currents on the retirement savings front have many employees feeling like they are paddling upstream. The decline in the use of defined benefit plans, fears about the future of Social Security, the two severe bear markets since 2000, low interest rates for savers, and a weak economic environment have resulted in many employees falling well short of the level of savings needed to secure a dignified retirement. Increasingly, it is becoming clear that health and wealth are intersecting and are very likely closely linked. Once employers and employees recognize this relationship, they can begin to proactively take steps to successfully navigate this potentially turbulent convergence of retirement and health care costs….