One bit of good news for employees is that the vast majority of employers currently providing retiree medical benefits will continue to do so, said Cara Jareb, director of retiree medical consulting at Watson Wyatt. The bad news is that retirees -- especially future retirees -- will have to pay more for their coverage.
Nearly two-thirds of employers anticipate increasing the financial contributions for future retirees and half expect to change their plan design. Twenty-four percent intend to tighten eligibility for future retirees, and 10 percent expect to place a new or lower cap on their employer contributions.
Employers also anticipate increasing consumer-driven retiree options. As more companies adopt account-based programs for current employees, 26 percent anticipate offering this option to their future retirees.
Source: United Press International. Powered by Yellowbrix.
Read why retiree plans have been cited as underfinanced and risky.
Jacqueline Marcell discusses Medicare Part D.
Retire well with planning tips from ThirdAge.
