News & Information

 

FEATURE PRODUCTS

The U.S. Master Pension Guide reflects the latest regulations, rulings and cases for qualified retirement plans, surveying the different type of plans from which an employer may choose, and describing the procedures for obtaining plan qualification.

Learn More »

CCH® BENEFITS — 4/9/08

Baby-Boomer Workers Unaware And Unconcerned About Their Risks For Extended Disability

From Spencer's Benefits Reports: Baby-boomer workers “significantly underestimate” their risk for an absence from work because of an extended disability and say that they are not concerned about that possibility, according to a survey recently conducted by Harris Interactive for America’s Health Insurance Plans (AHIP). The online survey of 828 baby boomers ages 44 through 62 also revealed that they are unaware that the main causes of disability are illnesses, not injuries. However, 63% of baby boomers do recognize that suffering a disabling illness or injury is more likely than is early death. Women are twice as likely as men (16% versus 8%) to believe that early death is more likely than extended disability.

Slightly more than one-third of baby boomers (34%) say that the chances of a typical adult worker becoming disabled and absent from work for three or more months over their lifetimes is 5%; 51% think that it is 10% or less. One-fourth of respondents estimate that the chances of a typical adult worker becoming disabled for three or more months is 30% (which is the estimate of the Social Security Administration); and another 5% estimate the chance at between 27% and 33%.

Baby boomers’ awareness of the most common causes of disability also was lacking: 10% were not aware of the main causes; 26% listed back, muscle, and joint problems; 18% indicated on-the-job injuries; and another 16% cited off-the-job injuries. According to JHA, a major administrator and researcher of disability claims, the most common causes of disability are cancer, heart disease, and diabetes. Furthermore, most disabling injuries are most likely to happen outside of work—although 22% of baby boomers believe that most of the disabling injuries happen at work. JHA and the National Safety Council say that the rate of injuries at work is less than 4%. The great majority of baby boomers believe that most disabling injuries happen at home (30% of respondents) or during leisure activities (23%).

These survey results suggest “that as boomers become better informed about the risks and causes of a disability, they can make better decisions concerning their financial future.” For more information, visit http://www.ahip.org.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

Visit our News Library to read more news stories.