Obamacare: Hurting Retirement Plans

Comment: It’s an economic maxim that the total cost of employing a worker is what matters to an employer, and it makes the employer no never mind how much is wages, taxes, or benefits.  Costs are costs.  So, if you increase the cost of one benefit, other benefits must suffer. Consequently, firms are spending less on retirement benefits as they shift resources to the health control law (less and less affectionately known as Obamacare).

In other words, “if you liked your retirement…”

“The Affordable Care Act (ACA) has affected the current retirement benefits strategy and spending of 43% of U.S. employers, and 45% believe ACA will change their retirement plans in the future, according to a new LIMRA Secure Retirement Institute study.”

“LIMRA reported that of those who believed the ACA has changed their retirement benefits strategy, 55% said they are spending less money on retirement benefits and shifting costs to employees [...]” (emphasis added)

Employers say Obamacare has shifted focus from retirement strategies
By IFAwebnews Staff, April 15, 2014

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