Surprisingly unsurprising news in Lockton's 2025 Benefits Survey

Increased Focus on Cost but...Slow to Action

As employers are planning their 2026 benefits strategy, managing costs has overtaken attracting and retaining talent as the most important factor in decision making. 

Over the past several years, plan sponsors have faced a global pandemic, rising healthcare costs, economic uncertainty, shifting employee expectations and now rising tariffs / trade wars. While "attracting and retaining talent" has long been a key priority, the 2025 Lockton National Benefits Survey highlights a notable shift: "reducing costs" has now become the top factor in benefits decision-making.
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Despite this shift, many plan sponsors have not yet taken significant steps to lower costs. While some are beginning to optimize their plans, most are prioritizing cost-management strategies that minimize disruption rather than implementing more impactful changes. The challenge lies in balancing the need to reduce costs with the pressure to meet employees’ expectations for benefits — plan sponsors remain cautious about changes that could disrupt their workforce or be seen as not meeting members’ perceived needs. Continuing to delay meaningful action, however, could make it more difficult to achieve cost savings, ultimately leading to tougher decisions down the line.

All of this is happening amid a growing spotlight on plan sponsors to meet their fiduciary responsibilities in managing benefits plans. As with retirement plans, employers have an opportunity to educate themselves on their fiduciary duties and take proactive steps to document how they are fulfilling these obligations.

Password for accessing the survey is Locktonbenefits2025

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