At a glance
- LIMRA's 2026 Benefits and Employee Attitude Tracker found 77% of employees enrolled in workplace medical coverage saw premiums rise in 2026.
- Another 17% said their premiums jumped more than 10%.
- For advisers who work with plan sponsors and participants, the deferral cut connects a health election to a retirement outcome: 12% of workers facing a premium increase put less into the plan this year.
One in eight workers whose health premiums rose this year responded by adding less to retirement savings, according to LIMRA research reported by 401(k) Specialist on Oct. 29.
LIMRA's 2026 Benefits and Employee Attitude Tracker found 77% of employees enrolled in workplace medical coverage saw premiums rise in 2026. Another 17% said their premiums jumped more than 10%. Of the workers facing higher premiums, about half modified a benefits decision. The changes included 20% cutting everyday spending, 16% moving to a less expensive medical plan and 12% reducing retirement savings contributions. Younger workers were the most likely to take direct action.
For advisers who work with plan sponsors and participants, the deferral cut connects a health election to a retirement outcome: 12% of workers facing a premium increase put less into the plan this year. That makes the health election a variable in plan design, because the contribution level a sponsor's match formula assumes can move with a premium increase. Open enrollment is the practical point to check whether a premium increase is pulling participants below the match.
One in eight cut retirement saving after a premium rise
Share of workers with a premium increase reporting each change, 2026
- Cut everyday spending20%
- Moved to a less expensive plan16%
- Reduced retirement contributions12%
Show as table
| Item | Value (%) |
|---|---|
| Cut everyday spending | 20% |
| Moved to a less expensive plan | 16% |
| Reduced retirement contributions | 12% |
Reported by the Plans & Sponsors desk from 401(k) Specialist, citing LIMRA. Published . Corrections