“A Little Help: The Impact of On-line Calculators and Financial Advisors on Setting Adequate Retirement-Savings Targets: Evidence from the 2013 Retirement Confidence Survey,” and “'Post' Script: What’s Next for Employment-Based Health Benefits?”

March 2013, Vol. 34, No. 3
Paperback, 28 pp.
PDF, 1,914 kb
Employee Benefit Research Institute, 2013

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Executive Summary

Retirement-Savings Targets:


• Those using an on-line calculator or asking a financial advisor appear to set more adequate savings targets, as measured by the probability of not running short of money in retirement.


• Those in the lowest-income quartile show a 9.1?12.6 percentage point improvement (depending on family/gender) in the probability of not running short of money in retirement if a financial advisor has been asked, and a 14.6?18.2 percentage point increase if an on-line calculator is used.


• Those who “guessed” at a retirement savings target were less likely to choose an adequate target.


Health Benefits:


At EBRI’s 71st policy forum, some of the nation’s top health policy experts raised these points, among others:


• Recent discussions in Congress to possibly cap or reduce the tax exclusion for health benefits could result in a big shock for workers.


• A major problem underlying rising healthcare spending is the nation’s rapidly aging population.


• While health care cost trends made change inevitable, PPACA exacerbated the impact on two key fronts: the administrative difficulties in dealing with health exchanges, and the fees imposed on employers.


• For small employers, the attraction of having workers get health coverage through a health exchange (rather than their jobs) is going to be very strong.