Importance of Disability Benefits Increase as Workforce Weathers Financial Strain
According to an industry analysis by the Standard Insurance Company, the net worth of the average American worker has plummeted over the past decade, thus increases the necessity for disability insurance and related services.
“The recession, along with higher health care costs and a multigenerational workforce, is creating a unique situation for employers,” Alex Dumont, assistant vice president, product marketing at Standard Insurance Company said. “Lower employee net worth has made it necessary for baby boomers to have a longer employment tenure to recoup money lost during the Great Recession. This is affecting the upward trajectory of Generation X and Millennials and will shift the current cost structure under which employers are operating.”
The delayed retirement of many baby boomers is creating a workplace with high incidences of illness and injury which combine to strain employer health care costs, which the research shows to have risen every 10 years for men over 45 and women over 35. The productivity of baby boomers still in the workforce relies on the availability of wellness programs, as well as those designed to help employees return to work or stay at work. Gen Xers and Millennials are also facing declining personal wealth, slower career growth, and arising family responsibilities.
“We’ve seen the cost of caring for children and aging parents rise over the last 10 years, placing a significant financial burden on Generation X and Millennials,” Dumont said. “These generations — sometimes referred to as the ‘sandwich generation’ — are more likely to use family and medical leave benefits to care for family members. They are not afraid to use these benefits, especially since they can’t always afford to pay for family care services.”