Employers as Risks

In evaluating health and retirement security in the United States, much recent work has focused on shortcomings in individual decision making. For example, in explaining why 401(k) plans are suboptimal for achieving retirement security, a significant volume of literature has catalogued the mistakes individuals make when attempting to save for retirement through such plans. This article seeks to move the discussion of suboptimal decision making in a new direction, by focusing on the impact that employer decision making has on the ability of employees to achieve health and retirement security. The article argues that employer decision making regarding whether to offer health and retirement plans and, if offered, what form such benefits will take, has a significant impact on the ability of employees to achieve health and retirement security.

The article concludes by offering initial thoughts on methods to control this employer-level risk.