| | Benefits & Administration | | Investor Conservatism Doesn’t Jibe With Retirement Risk Fears | | On average, consumers hold less than one-half of their assets in stocks, stock mutual funds, and exchange-traded funds (ETFs), according to the report “Protection, Growth and Income” based on a study conducted on behalf of the Insured Retirement Institute and AXA Financial. Those who have a low tolerance for investment risk have an average of 37% allocated to stocks. For true conservative investors (those with low risk tolerance and 25% or less of their investable assets allocated to stocks), the fear of losing money in the stock market (approximately 80% of respondents) and lack of trust in the stock market for money they are counting on in retirement (approximately 70%) are the most often cited reasons for allocating less of their portfolios to stocks. “Unfortunately, under-allocating to stocks can hamper progress toward financial and retirement goals, resulting in lower retirement income and financial resources that are inadequate for managing financial risks, such as health care shocks and inflation, during retirement,” the report notes.Read more > | | Education Key to HDHP and HSA Engagement | | Just 13% of the 1,100 respondents to WEX Health’s first-ever Clear Insights report identified a health savings account (HSA) as the employer benefit that provides the most pre-tax savings. In addition, more than half (54%) were not aware that they could invest their HSA funds in stocks, mutual funds and other investment vehicles. And, three-quarters of respondents see their HSA as a way to pay for health care expenses this year, which indicates they may not be aware that funds can be carried over into the next year. The most challenging part respondents cited in using their HSA was making sure to have enough funds set aside to cover deductibles (29%) and figuring out how much money to put in the account overall (21%). The survey found the ways to most motivate employees to access resources and make better health care choices.Read more > |
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