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Securian financial study finds americans are falling into workplace benefits “affordability trap,” with many taking financial risks for bigger paychecks

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Lower premium benefits are prized by employees in today’s economy, but thousands of dollars in unexpected out-of-pocket costs haunt many later

As rising costs continue to outpace wages, many Americans are cutting costs by prioritizing lower premium insurance benefits offered by their employers during open enrollment — often at the expense of long-term financial protection.

According to Securian Financial’s fourth annual workplace benefits study, “The Affordability Trap: Why cheaper choices cost employees more,” this cost-first decision-making is creating significant hidden exposure that surfaces when medical events occur.

The research identifies a growing “affordability trap” — a pattern in which employees choose high-deductible health plans (HDHPs), skip supplemental coverage or reduce voluntary benefits to save on payroll deductions. While these decisions lower immediate monthly costs and produce bigger paychecks, they can result in thousands of dollars in unexpected out-of-pocket expenses later.

“When budgets are tight and enrollment decisions feel overwhelming, employees default to the one number they can control — the premium,” said Adam Taylor, vice president for Employee Benefits Solutions at Securian Financial. “But what looks cheaper today can become far more expensive tomorrow.”

The hidden financial exposure behind “cheaper” plans

Securian Financial’s study found cost dominates benefits enrollment decisions, with nearly two-thirds of employees, especially older generation employees, saying it’s their top workplace benefits priority during open enrollment. Most employees say they choose lower-premium plans with higher deductibles or stick with bare-minimum coverages because it’s all they can afford.

For many employees, the out-of-pockets costs these “cheaper” plans come with can end up hurting them financially and beyond. In the past 12 months:

  • 22% of survey respondents received a surprise medical bill that was higher than expected
  • 20% used savings or emergency funds to pay medical bills
  • 18% experienced significant financial stress due to medical bills
  • 17% went into debt for medical expenses
  • 13% delayed or avoided medical care due to cost concerns
  • 3% filed for bankruptcy or considered it due to medical debt

“The math employees are doing is simple: ‘What comes out of my paycheck?’” said Taylor. “The math they’re not seeing is what happens if they’re hospitalized, need surgery or face a serious diagnosis. That’s where the affordability trap snaps shut.”

Recommendations for employers

The study urges employers to move beyond premium comparisons and make total exposure visible:

  • Show real-dollar scenarios: Illustrate premium + deductible + out-of-pocket maximum in routine and high-cost years.
  • Bundle guidance at decision points: If employees select HDHPs, be sure to show them supplemental insurance protections like accident, critical illness and hospital indemnity insurance that can help offset likely exposure. Only 30% of employees surveyed said they were enrolled in supplemental coverage, but 67% who are said they find it helpful.
  • Invest in scenario-based benefit decision-support tools: 70% of employees said in the study they use these AI-based tools when available.
  • Design for time-constrained decisions: Lead with the most consequential trade-offs, as the study found one in five employees (20%) feel pressured to decide quickly during open enrollment.
  • Communicate trade-offs transparently: Explain what has changed since last year, why and what employees should consider next.

“The affordability trap isn’t about employees making bad decisions,” said Emma Thomas, director of marketing at Securian Financial, who leads the company’s annual workplace benefits research. “It’s about employees making rational decisions with incomplete information—and paying for it later. Employers can’t eliminate the trade-offs, but they can make those trade-offs visible.”

World Gold Council Proposes Shared Infrastructure for Tokenized Gold Products

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The industry body co-authored a white paper with Boston Consulting Group outlining a “Gold as a Service” platform to standardize issuance and custody of digital gold.

The World Gold Council, the gold industry’s leading market-development body, announced Thursday it is building shared infrastructure designed to make digital gold products more interoperable, scalable, and easier to launch.

The initiative, detailed in a white paper co-authored with Boston Consulting Group, proposes a platform called “Gold as a Service” — an open middleware layer connecting physical gold custody with the digital systems used to issue and manage gold-backed products.

The platform would standardize backend processes, including custody coordination, reconciliation, compliance, and redemption, while leaving front-end product design and branding to individual issuers.

The tokenized gold market has ballooned in recent months but remains structurally fragile. Total market capitalization has surpassed $5 billion, but the sector is dominated by just two products, Tether Gold (XAUT) and Paxos Gold (PAXG), which control more than 95% of the market.

That concentration reflects the high barriers to entry that the WGC’s white paper aims to address. Launching a digital gold product today requires issuers to independently build custody relationships, compliance pipelines, audit frameworks, and redemption logistics, a fragmented setup that limits competition and hampers fungibility across products.

The WGC argues that a shared service layer could lower those barriers, enabling new issuers to enter the market while making digital gold products more interchangeable, a prerequisite for deeper liquidity and broader DeFi integration.

3 Layer Architecture

The proposed system is organized around three layers. A physical layer would manage sourcing, storage, transport, and redemption of actual gold. A digital layer would handle issuance, ownership records, and product-lifecycle management. Finally, an interface layer would allow issuers to build their own customer-facing experiences on top of the shared stack.

Under this model, issuers would compete on user experience, pricing, and distribution — not on custody infrastructure. The WGC envisions digital gold eventually serving as deployable capital, enabling use cases such as being pledged as collateral for borrowing.

Gold Drops

Gold is trading at around $4,500 per ounce after falling sharply from above $5,000 earlier in the week. Gold rose 64% in 2025, its strongest annual performance in decades, driven by central bank purchases and demand for safe-haven assets amid geopolitical uncertainty.

The rally has catalyzed a wave of tokenized gold activity. In January, the sector crossed $4 billion in market value.

Yet the sector’s growth has also highlighted its structural limitations — exactly the problems the WGC’s initiative is designed to solve. The WGC noted that above-ground gold supply is worth more than $30 trillion, dwarfing the current tokenized market and underscoring the growth potential that standardized infrastructure could unlock.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

SEC Crypto Guidance Is a Major Step, but More Is Needed: Analyst

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The recent guidance from the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission establishing a taxonomy for digital assets put a “final nail” in the coffin of SEC policy under former Chairman Gary Gensler, according to Alex Thorn, the head of firmwide research at investment firm Galaxy.

The SEC guidance, published on Tuesday, established a taxonomy for digital assets, dividing them into five categories, including digital commodities, digital collectibles like non-fungible tokens (NFTs), digital tools, stablecoins, and tokenized securities. 

The SEC guidance published on Tuesday establishes which digital assets qualify as securities. Source: SEC

Under the old SEC policy framework, the regulations governing which cryptocurrencies met the legal criteria of “investment contracts” were legislative rules, as opposed to the new 2026 guidance that was filed as an interpretive rule, Thorn said. He explained the significance:

“The distinction matters enormously under the Administrative Procedure Act (APA). A legislative rule or substantive rule goes through notice-and-comment rule-making, has the force and effect of law, and binds both the agency and regulated parties. 

An interpretive rule is exempt from notice-and-comment requirements, does not have the force of law, and merely explains how the agency understands existing statutory provisions,” he continued. 

The interpretive rule does not legally bind courts to enforce the policies, which gives the SEC and the crypto industry flexibility in adapting to future regulatory changes, he added.

The new regulatory approach gives the crypto industry much-needed clarity over the next 30 months, Thorn Said; however, he clarified that the CLARITY crypto market structure bill must be codified into law to cement the rules over the next several decades. 

Related: SEC interpretation on crypto laws ‘a beginning, not an end,’ says Atkins

The CLARITY Act stalls, but rumors emerge of a tentative deal between White House and lawmakers

The CLARITY Act stalled in January 2025, after crypto exchange Coinbase and other industry players voiced concerns over the prohibition on stablecoin yield and a lack of protections for open-source software developers.

Crypto companies and industry thought leaders also cited provisions that would effectively gut the decentralized finance (DeFi) sector by imposing reporting requirements and know-your-customer controls on DeFi as a major cause of contention. 

SEC, CFTC, United States, Gary Gensler
Source: Jake Chervinsky

On Friday, Politico published a report of a tentative deal between the White House and lawmakers to move the CLARITY bill forward.

Specific details of the prospective deal have not yet been revealed, although Senator Angela Alsoboorks said the tentative deal includes a ban on stablecoin yield from “passive balances.” 

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026