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New BEAT Study reveals premium and cost-of-living increases are forcing tradeoffs in benefit decisions, while a cooling labor market promotes “job-hugging” and skewed workplace satisfaction trends

WINDSOR, Conn (June 10, 2026) — LIMRA, a leading financial and insurance organization, has released findings from its annual Benefits and Employee Attitude Tracker (BEAT) Study. The study, which surveyed 4,052 U.S. employees in January 2026, found that as consumers navigate a cooling labor market, rising insurance premiums, and broader cost-of-living concerns, the report explores how these economic pressures are shaping behavior and decision-making.

Rising medical costs are impacting employee benefit affordability, with more than three-quarters of workers dealing with a rise in medical premiums in 2026, with some reporting increases of over 10 percent. More alarmingly, half of workers made changes in reaction to this, including 16 percent who reduced spending on other benefits and 12 percent who reduced retirement savings contributions. The picture was worse for young employees, with nearly three-quarters of Gen Z workers taking some form of action when their medical premiums increased. The report also found that Gen Z workers are most likely to reduce benefit spending overall.

“It is concerning that some workers, especially Gen Z, are reducing their 401(k) contributions due to rising medical insurance premiums,” said Kimberly Landry, Research Director at LIMRA. “For a Gen Z worker earning a $50,000 salary and contributing 5% of their salary, reducing that rate by just 1% means saving $500 less each year. Over a 40-year career, that could result in at least $20,000 less in retirement savings before even accounting for employer matches, salary growth, or investment returns. Even small reductions in retirement contributions can have significant long-term effects.”

Even as employees look to cut back on benefit spending, the research found that most workers have a critical need for the financial protection that benefits provide. A majority of households would have trouble paying living expenses within several months if they lost a breadwinner’s income, while only 45% of employees would be able to pay an unexpected

medical bill of $2,000, pointing to a pressing need for disability insurance, life insurance, and supplemental health insurance benefits.

Additionally, LIMRA found that overall satisfaction with benefits has risen since last year, with 45% of workers now very satisfied with their offerings. This may be tied to the recent trend of “job-hugging” amid a cooling labor market, causing employees to look more favorably upon the benefits they already have rather than searching for greener pastures.

However, LIMRA found a stark disconnect between employee satisfaction with benefits and employer perceptions of that satisfaction, with employers dramatically overestimating how well benefits are meeting their workers’ needs. “When employers misjudge the success of their benefits programs, they’ll be less motivated to make enhancements,” Landry said. “This puts them at risk of losing talent to competitors with more comprehensive offerings.”

The link to access the full report can be found at: https://www.limra.com/en/research/research-abstracts-public/2026/2026-beat-study-benefits-and-employee-attitude-tracker/

LIMRA’s Head of Research, Bryan Hodgens, will host a LinkedIn Live event on Wednesday, June 24 at 1:00 p.m. EDT to discuss key findings from the BEAT Study with Kimberly Landry, Research Director of Workplace Benefits at LIMRA and LOMA. Learn more HERE.