Market Insights

The outlook for the benefits industry looks anything but certain.

"Employers are highly focused on supporting the mental health of their employees, especially as they look to retain and engage talent," says Erin Terkoski Young, senior director for WTW's Health, Equity & Well-being practice.

The worst-hit region is likely to be Europe, where real salaries — nominal wage growth minus the rate of inflation — are seen being driven down an average 1.5%, according to workforce consultancy ECA International.

In-plan retirement income solutions are now on the priority list with at least eight new products, such as target payout funds and in-plan annuities, having been launched by major asset managers and insurers since 2020.

The projected increase remains below the 8.3% CPI inflation rate. Small solace for plan sponsors seeking the ever-elusive predictable annual premium increase.

The health care industry is preparing for a big hit from delayed medical care of chronic diseases. But there's good news, too.