BIP Summer 2024

Industry Innovation

Ongoing national trends impact benefit strategy By Perry Braun

As we enter the second half of the year, there’s a sense of déjà vu. Policies that address voters’ financial position, feeling of security, basic living expenses, and education will be central. Still, dramatic change is doubt ful, given the fractured state of politics. We’ll need to wait at least a year or two for real action, and what happens will depend on the political configuration of the government. More immediately, the following issues are likely to impact NABIP members. While the economy will continue to expand, monetary and fiscal policies will work against each other. Businesses hope that interest rates will move downward to lower the cost of borrowing capital. At the same time, they will find it challenging to retain labor as other compa nies pay more to recruit workers. This upward pressure on wages will put pressure on inflation, and the cycle will continue. Employers will balance cost savings against too many adjustments that could lead to an exodus of talent. Two-thirds of American workers believe their pay is inadequate to cover the rising cost of inflation, ac cording to Bank of America. Many are making spending decisions based on short-term needs rather than long-term consequences, such as forgoing prescription drugs.

Understanding the implications of these trends is crucial for us as advisors. It allows us to provide the best possible advice and make necessary adjustments to benefit plans, ensuring our NABIP members and clients are well-prepared for the future.