With open enrollment around the corner it’s time for many working Americans to start making benefits selections for the upcoming year. A new study by Equitable, a leading financial services organization, found that more than half of Americans eligible for workplace benefits through their employer regret their choices made during last year’s open enrollment period.
While open enrollment typically offers employees a two-week window during which they can make benefits selections, the study found that the average amount of time Americans spent making these choices last year ranged from only 30-60 minutes. In comparison, the average American spends nearly two hours on social media every day.
When U.S. employees were asked why they regret their benefits selections, 25% said they did not adjust their benefits to match their lifestyle changes, 20% said they forgot to make their selections by the deadline and 19% said they did not understand the options available or the benefits they selected, according to the study.
“Our research suggests that many American workers are second-guessing their benefits selections,” said Stephanie Shields, Head of Equitable’s Employee Benefits business. “With open enrollment approaching for millions of households this fall, it’s critical that workers review and understand their benefit options, stay mindful of deadlines and consider how recent life changes might influence their benefits choices.”
According to the study, increasing numbers of U.S. employees are turning to social media for information and guidance on their workplace benefits. Nearly 1 in 4 U.S. employees say they use social media for education about benefits – a trend that is highest among Gen Z (43%) and millennial (37%) employees. However, older generations, such as baby boomers (67%) and Gen X (60%) are more likely than younger generations to rely on information provided by their employers to make open enrollment decisions.
The study found that 35% of workers would feel comfortable turning to financial professionals for support when making benefits decisions during open enrollment.
“Employee benefits play an important role in the financial lives of American workers and their families by protecting their savings from unexpected health events that could otherwise cause financial strain,” Shields said. “While most workers rely on their employers for help during open enrollment, it is encouraging to see that younger generations are open to guidance from financial professionals on how workplace benefits fit into a holistic financial plan.”