When employees end their service after a long career, chances are they still feel a strong connection to the place they worked, and the people they worked with and for.
This is especially true for those long-service employees who qualify for employer-sponsored healthcare benefits during retirement.
Retiree benefits can provide critical financial and health protection, so it’s not surprising that retirees are highly invested and motivated to make sure they understand how those benefits work and how they’re delivered.
It’s understandable. According to a recent survey, the price for retiree benefits can be steep. An average retired couple, both age 65 in 2019, may need approximately $285,000 after-tax dollars to cover healthcare expenses in retirement.
When it all goes right, retirees can be loyal ambassadors of your employer brand long after their active service ends. But if it goes wrong, they can be quick to notice any shortcomings in the delivery of the benefits they’re counting on.
Retirees don’t want a benefits delivery experience that’s fundamentally different from what they had when they were actively at work, and they don’t want to have to log in to multiple systems or call a lot of phone numbers to get the information and support they need.
In short, this stuff is important to your retirees. And, offering the wrong solution can prove expensive for you.
Retiree healthcare benefits can be extremely complex, with their own set of unique challenges. As we’ve been talking with clients about their needs for retiree healthcare benefits administration, we’ve heard some key themes that we wanted to share. This is what employers that offer retiree healthcare benefits and want a best-in-class solution are looking for:
Effective retiree services need to meet these overarching goals while delivering a highly flexible administration approach that solves for the reality that there’s no one-size-fits-all approach to retiree benefits programs. And, there should be advantages for you as the plan sponsor.
And just as importantly, the experience should be positive and seamless from retirees’ perspective. For example:
Retirees with employer-sponsored healthcare coverage may no longer be active employees, but how their benefits are delivered matters. A poor benefits experience can color retirees’ perspective and turn organizational ambassadors into vocal detractors.
Leveraging a benefits delivery solution that is easy for you to use and that can address the administrative complexity of retiree benefits while also providing a modern experience helps you make the most of your investment in benefits for this population.
To learn more about how Businessolver can support and strengthen your retiree benefits strategy, check out our page below: