308 words…one and a half minute read

In the United States, high inflation levels are becoming the most disruptive force to financial health.

• By the numbers: According to a recent survey, more than a third of Americans today feel unprepared or unsure if they are on track for retirement and one fourth of Americans are expecting to delay their retirement due to rising consumer costs.

Inflation is driving consumers to rethink how they spend – including how they plan for retirement and how to make the most of their healthcare spending.

• How Aon can help shape better decisions for retirement: Aon recently announced its pooled employer plan (PEP) has reached $1 billion in U.S. 401(k) assets and commitments since its inception . According to Rick Jones, senior partner in Aon’s Wealth Solutions:
  • “The benefits of transitioning to a pooled employer plan – half the costs, reduced time commitment from corporate staff, improved governance and high-quality retirement planning options – have become material for employers and their employees. We expect more than half of U.S. employers to merge their traditional 401(k)s into pooled employer plans by 2030.”
  • Learn more about Aon’s PEP here and check out how Aon brings retirement into focus here.
• Data from Aon also provides insights on healthcare costs: In  the U.S., The Inflation Reduction Act will protect Medicare recipients from high drug costs by creating a cap for out-of-pocket costs and allow Medicare to negotiate prices for high-cost drugs for the first time ever. Recent Aon research states that average costs for U.S. employers that pay for their employees’ health care will increase 6.5 percent to more than $13,800 per employee in 2023. Check out CNBC for more insights from Aon about employer healthcare costs.

The big picture: Inflation is top of mind around the world - check out additional insights from Aon on inflation and how Aon helps clients mitigate inflation risks.