Capital Management Group of Niagara, Inc.

A Historical Perspective

Post 9/11 era and economic instability has placed a larger burden on employers to provide benefits

Employee Benefits have existed in United States since the settlers in the early 1600’s. It was the government’s enacting of the Social Security Act in 1935, the protection of disabled workers and dependents in 1956, and the addition of Medicare benefits in 1965, along with the government’s support though tax preferences for employee benefits that gave rise to the partnership between government, individuals, and businesses. This historical footprint has brought us to the twenty-first century and the mutual relationship that exists between government programs, employer-based benefits and the workforce.

Statistics to Consider

Two thirds of the population under 65 has employer-based health insurance; but sadly, nearly 46 million Americans under age 65 are without health insurance.
Workers with employment-based health insurance are more than twice as likely to have a retirement plan as those without health insurance from their employer.
Since 2007, we have witnessed the lowest point in the last two decades for the rate of personal savings (a percentage of disposable income).
Statistics have supported that it is the employee covered though a health insurance plan that is healthier, is able to save for retirement.
Worker’s between the ages of 55-64 who reported having excellent health (58.4%) participated in an employer-sponsored plan, and those that had poor health only had 37.2 % participation in a plan.
If you are male age 65 and retired in 2008, you will need from $64,000 to $159,000 in savings to cover health insurance premiums.

Source: Dept of Commerce, U.S Census Bureau