Saving for retirement presents unique challenges to the health care industry. Despite 88% of health care employees reporting that they are saving for retirement, 48% say that debt is the reason they’re saving less than they need.
Employers can offer a number of solutions to help health care workers who cite debt as a primary challenge when saving for retirement, including:

• A holistic benefits package, including supplemental health benefits such as critical illness, accident coverage and hospital indemnity insurance.
• Personal, one-on-one guidance through a dedicated retirement consultant to discuss retirement goals and life circumstances to create a personalized plan for saving for retirement.

We talked with Anne Shiembob, Vice President, Retirement Plan Services at Lincoln Financial, about serving the retirement planning needs of the health care industry.

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Q:  What are some challenges the health care industry faces when saving for retirement?

A: The health care industry attracts a diverse workforce from different ages, levels of education, backgrounds and more. With such a diverse workforce, and with employees in the health care industry often working long, varied and demanding hours providing patient care, offering a personalized, high-touch approach to retirement planning is critical to supporting the unique needs of each individual.

Whether that is discussing their personal goals, speaking the language they are most comfortable in or offering a virtual meeting at a time convenient to them, a retirement consultant can tailor the conversation to the individual, promoting more open conversations about goals and expectations. A recent Lincoln Financial study found 73% of health care workers who contribute to their workplace retirement plan are saving less than they think they need to save to be on track for retirement.

The median amount health care workers think they need to save to be on track is 15%, but the median amount health care workers are actually saving is 10%. Data from Lincoln Financial shows that employees who meet with a retirement consultant have a 2% higher median deferral rate than those who don’t. They are also two times more confident about retirement readiness.
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Q: How is debt impacting health care workers?

A: A recent Lincoln Financial study found 88% of full-time workers in the health care industry say that they carry debt. Of those nearly 9 out of 10 workers who carry debt, 48% cite debt as a contributing factor to saving less for retirement than they’d like. Health care workers are not exempt from the rising costs of health care, with 1 out of 3 health care employees saying they incurred a significant medical expense in the last few years.
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Q: How can health care employers support workers and help promote retirement readiness?

A: Employers in the health care industry can support their employees’ retirement planning needs in a variety of ways, but most importantly, they can provide options that allow employees to take control of their financial goals:
39% of all employees who have had moderate to significant medical expenses or medical debt are saving less. Offering a wide variety of supplemental health benefits can allows employees to select the coverage they need for their unique circumstances.

Encouraging the use of wellness tools that put the power to manage goals and find resources in the hands of employees, such as Lincoln’s WellnessPATH, can help them manage stress, budgeting, loan repayment and more. 77% of employers who used financial wellness programs and tools saw a positive impact.

Providing opportunities for employees to receive one-on-one guidance through a dedicated retirement consultant. With each employee’s personal circumstances and goals differing from the next, having personalized conversations about term goals, as well as immediate needs, can help employees plan for a confident retirement while managing their current needs like child-care, paying off debt or saving for a house.
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Q: What type of holistic benefits package should health care employers offer their employees?

A: Offering a holistic benefits package, including supplemental health benefits such as critical illness, accident coverage and hospital indemnity insurance, can help health care employees navigate the challenges of medical expenses without negatively impacting their retirement savings goals. In addition, if employers are able to utilize a single benefits provider for both their retirement and their group benefits, employees have the ability to see a complete picture of all the benefits and resources available to them.
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Q: Why is it so important to help employees create a personalized savings plan for their retirement?

A: Saving for retirement is not a one-size-fits-all approach. Research from Lincoln Financial shows that retirement savers who set a specific goal for how much they’d like to save each year are four-and-a-half times more likely to be confident about retirement and have a two times higher median deferral rate.
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Related: Retirement readiness crisis: Gen X and boomers fall short on savings

By meeting with a retirement consultant for personalized, one-on-one guidance, employees in the health care industry can evaluate savings goals against current needs and discuss new solutions that can provide greater security in retirement. In-plan guaranteed income products are rising in popularity. 73% of health care workers say they would be interested in an investment option within their employer’s retirement plan that provides guaranteed payments in retirement, similar to a pension. With personalized support, employees can plan for a comfortable, confident retirement that meets their individual needs and goals.