Employers say they’ve told retirees what to expect on out-of-pocket costs for their medical coverage.
But if you ask the retirees, they’re singing a different tune.
Surveys conducted by Towers Watson indicated a large disconnect between what employers say they did, and what retirees remember being told about their medical benefits before they retired.
While 43 percent of retirees surveyed said their employers took no steps at all to help them understand and manage the cost of retiree medical benefits before they retired, just 9 percent of employers acknowledged they offered no help.
Barely over a third (34 percent) of retirees said their employers communicated with them about the out-of-pocket costs of their medical coverage—costs that aren’t covered by an employer subsidy.
But more than half of employers—53 percent—claim to have done so.
In addition, only 19 percent of retirees said they were offered financial planning resources and decision-support tools to help them understand the role of medical coverage in their retirement planning, but 41 percent of employers that said they provided such resources.
“These results show a significant mismatch between what employers told us and what retirees said they experienced in preparation for health care costs, which are a significant retirement expense,” John Barkett, a director for Towers Watson’s Individual Exchange line of business, said in a statement.
Barkett added, “While the difference in employers’ and retirees’ opinions may be closing slightly, it’s evident that employers can do a better job of educating employees about retiree medical costs and benefit options as well as explaining more clearly the support retirees can expect with benefits after they’ve stopped working.”
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