Eligible Health Savings Account Expenses 2011

Generation X Employees Struggle the Most Financially, Most Likely to Dip into Retirement Savings, According to PwC Study.

 Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, June 18, 2013 /PRNewswire/ — Generation X employees –
those born in the early 1960s to the early 1980s – struggle the most
when it comes to juggling competing financial priorities related to
their homes, children and parents, reveals PwC US’s 2013 Employee
Financial Wellness Survey. As a result, more than one-third (36 percent)
Gen X

 employees think it’s likely they will need to
dip into


1. to draw upon:

2. to read passages at random from (a book or journal)

Verb 1.
 their retirement savings to pay for nonretirement expenses, a percentage
significantly higher than for both
Baby Boomers

Gen Y

, the
“Millennials.” Thirty percent of Gen X employees admit having
already withdrawn money held in their retirement plans for expenses
other than retirement.

(Logo: http://photos.prnewswire.com/prnh/20100917/NY66894LOGO)

“Gen X employees are in a unique financial situation.
They’re often faced with the full spectrum of financial issues –
from having to fund children’s education to caring for aging
parents – while dealing with day-to-day household expenses,” says
Kent Allison, Partner and National Practice Leader of PwC’s
Employee Financial Education practice. “These competing financial
pressures, along with already
tr.v. de·plet·ed, de·plet·ing, de·pletes
To decrease the fullness of; use up or empty out.

[Latin d
 equity in their homes, exacerbate
America’s retirement crisis as employees believe they have no
choice but to turn to their retirement savings to focus on short-term

Retirement confidence remains low as employees’ concerns grow

v. lin·gered, lin·ger·ing, lin·gers

1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1.

 financial challenges continue
to weigh down

confidence: significantly less than half (35 percent) of employees
express confidence they will be able to retire when they desire,
reflected in the finding that employees ages 45-54 possessed the lowest
retirement confidence over the last three years.

Although overall employee financial stress across generations
decreased to 52 percent this year from 61 percent in 2012, financial
stress continues to impact employee productivity. Twenty-three percent
admit that personal finances have been a

Divination (See OMEN.)


a “person from Porlock” interrupted Coleridge while he was recollecting the dream on which he based “Kubla Khan”. [Br. Lit.: Poems of Coleridge in Magill IV, 756]
 at work. Of those,
19 percent say they spend five hours or more at work each week thinking
about or dealing with issues related to their personal finances.

“The leakage from retirement plans reemphasizes that employees
are facing immediate financial issues that compete with their focus on
long-term savings for retirement,” says Allison. “The impact
of this conflict can be seen beyond employees’ saving accounts. It
becomes a key concern for employers that may see older, less healthy,
less productive and more expensive employees working longer, impacting
the bottom line and reducing the younger generations’ opportunities
for advancement.”

Healthcare a greater concern

Healthcare costs rank among the top of employees’ retirement
concerns, with 38 percent citing it as a concern. The fear of losing
healthcare coverage drives an increasing number of people to delay
retirement: 29 percent this year, up from 21 percent in 2012.

More than half of the employees (53 percent) with health insurance
say they are covered by a high- or mid-deductible healthcare plan, a
reflection of the rise of consumer-directed health plans. While
employees are concerned about healthcare costs, only 35 percent of those
covered by a high or mid-deductible plan contribute to a
health savings

 (HSA) and of those, only 12 percent indicate that they plan to
use the funds as a means to meet future medical expenses in

Notably, the majority of those closest to retirement age are
planning ahead: of the Baby Boomers planning to retire within the next
five years before the age of 65, two out of every three employees have a
plan for covering their healthcare expenses before becoming eligible for
Medicare. Forty-three percent of Baby Boomers are confident they will be
able to cover their medical expenses in retirement.

“As life expectancies extend, these concerns will only increase
over time,” says Allison. “The burden of saving for retirement
has shifted to the employee with the rise of defined contribution plans.
So it’s important for them to understand the benefits of options
such as HSAs that allow them to meet current and future healthcare
costs. The under-utilization of HSAs is an education issue that we
encourage employers to address in their financial wellness

Despite some improvements, cash flow still a major issue

Cash flow issues continue to top employees’ financial concerns,
with anxieties about insufficient emergency savings for unexpected
expenses (49 percent), delayed retirement (45 percent), and not being
able to meet monthly expenses (22 percent) among the top concerns.
Additionally, almost half (49 percent) of Gen X respondents find it
difficult to meet their household expenses on time each month, as
compared to Baby Boomers (31 percent) and Millennials (30 percent).

“Despite key
economic indicators

 showing signs of improvement,
a more sustained recovery is likely required before a significant
positive impact occurs for employee financial wellness,” says
Allison. “People often expect immediate improvements when the
market climbs; however, employees’ financial situations don’t
turn on a dime. With employees continuing to experience effects of the
economic downturn, employers have an opportunity to drive change to
employees’ financial behaviors. Recognizing this, more and more
companies are implementing

A practice of medicine that focuses on the whole patient, and addresses the social, emotional, and spiritual needs of a patient as well as their physical treatment.

Mentioned in: Aromatherapy, Stress Reduction, Traditional Chinese Medicine
 and proactive financial wellness
programs that help their employees deal with the stresses of competing
financial priorities without sacrificing their future, ultimately
leading to a more productive and healthy workforce.”

About PwC’s Employee Financial Wellness Survey and Financial
Education practice

PwC’s Employee Financial Wellness Survey tracks the financial
and retirement wellbeing of working American adults nationwide. It
incorporates the views of more than 1,600 full-time employed adults.

Whether your employees are stressed over organizational shifts,
market conditions, personal life events, or benefits changes, PwC’s
Employee Financial Education practice works with clients to design and
deliver customized financial wellness programs tailored to employee
needs and specific employer objectives. Our goal is to
 verb To encourage or provide a person with the means or information to become involved in solving his/her own problems
to make educated decisions to improve their financial wellbeing.

Experience the difference. Visit us online at
www.pwc.com/us/financialeducation, email us at
financialcounselor@us.pwc.com or call us at 800-422-5579 to start the

About PwC US

PwC US helps organizations and individuals create the value
they’re looking for. We’re a member of the PwC network of
firms in 158 countries with more than 180,000 people. We’re
committed to delivering quality in assurance, tax and
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