WINDSOR, Conn. – October 29, 2026 -- One in eight U.S. workers whose health insurance premiums rose this year responded by cutting retirement contributions, according to new LIMRA research released as open enrollment begins.
77% of insured workers faced higher premiums in 2026
LIMRA's 2026 Benefits and Employee Attitude Tracker (BEAT) Study found that 77% of employees with workplace medical coverage saw premiums increase this year. For 17%, the increase exceeded 10%. About half of those affected changed their spending or benefits choices:
- 20% cut everyday spending.
- 12% reduced retirement savings contributions.
- 16% reduced spending on other employee benefits.
- 16% switched to a less expensive medical plan.
- 9% chose not to enroll in other benefits.
Younger workers reacted fastest. Nearly three in four Gen Z employees facing higher premiums took action, and 21% cut retirement contributions. These workers have the most time for savings to compound.
63% of workers spend under an hour on enrollment decisions
More than a quarter spend less than 30 minutes. Financial strain is widespread: 49% of workers are very or extremely concerned about healthcare costs, and 57% are more worried than a year ago. Forty-two percent worry about saving enough for retirement. Fifty-five percent would need to borrow or finance an unexpected $2,000 medical bill not covered by insurance, or could not pay it at all.
Benefits budgets are limited. Workers are willing to spend a median of $150 a month on workplace benefits, excluding retirement savings. According to KFF, that is roughly a quarter of the $571 average monthly worker contribution for family medical coverage. Higher medical premiums leave less for protection such as life and disability insurance.
Expired ACA subsidies create a cliff for retirees withdrawing savings
The findings reinforce a LIMRA Retirement Income Institute paper, Redefining Advice: Integrating Healthcare Into Retirement Planning. Author Jae W. Oh, a fellow of the institute, argues that healthcare planning should be a core part of retirement planning. He says the focus should be on how much income remains after taxes and healthcare expenses.
Enhanced Affordable Care Act (ACA) subsidies expired at the end of 2025. Households with income above 400% of the federal poverty level no longer qualify for any premium tax credit. A single retirement account withdrawal or Roth conversion can therefore become very expensive for those buying marketplace coverage.
Paper lists five open enrollment actions for consumers
- Compare deductibles, prescription coverage, provider networks and total potential out-of-pocket costs, not just monthly premiums.
- If contributions must be cut, keep contributing enough to receive any employer match.
- Those retiring before 65 should watch whether an IRA withdrawal or Roth conversion pushes income above 400% of the federal poverty level.
- Medicare uses income from two years earlier to set Part B and D premiums, so a large withdrawal or conversion at 63 can raise premiums at 65.
- In most states, the guaranteed right to buy a Medigap policy without medical underwriting comes only once, so switching later may not be possible.
ACA marketplace enrollment opens November 1, and Medicare open enrollment is underway. The BEAT Study surveyed 4,052 full- and part-time U.S. workers aged 18 to 64 online in January 2026. The sample was weighted to represent U.S. employees based on Census Bureau data.