Morning Report: Workers are cutting back on health expenses

How inflation is impacting health and retirement

Nearly 1 in 6 Americans are making efforts to cut back on their health expenses. Telus Health found that 13% of workers in the United States cite inflation as the cause. Health and wellness expenses not covered by insurance, such as glasses and gym memberships, are the first to go. Telus Health also reports that parents are almost twice as likely as non-parents to minimize expenses related to their own health.

Inflation is impacting 401k plans, according to analysis by Fidelity. Retirement accounts lost nearly one quarter of their value in 2022. The average 401k balance is 103 thousand dollars.

Despite the drop in value, the majority of those saving for retirement still contribute. Fidelity found that employer and employee contributions held fairly steady at an average of 13.7%. This average falls just below Fidelity’s recommended savings rate of 15%.

Like many U.S. restaurants, Domino’s has increased delivery charges and menu prices over the past year. These efforts to counter high labor and commodity costs have not been received well by consumers. Many customers are now opting to cook at home instead of ordering out. As a result, Domino’s Pizza missed their quarterly sales estimates. With fewer online orders for pizzas and chicken wings, the company’s shares dropped by 11%.

The results for PayScale’s Bellweather Survey are in with bad news for employees. Fewer employers are offering pay raises, according to the 2023 Compensation Best Practices Report. Employers who are willing to increase pay are not being generous either. This lack of flexibility extends to remote work as well. The survey reveals that employers are turning down remote work arrangements.

Stocks have managed to snap a losing streak.
The DOW closed up a hundred points. The S&P 500 and Nasdaq also made gains.