International Business Machines Corp. (IBM), Caterpillar Inc. (CAT): Why Employers Are Making Workers Get Money-Smart

But health insurance is far from the only way in which companies have shifted the responsibility for providing not only financial support for benefits, but also structural support. International Business Machines Corp. (NYSE:IBM) and other companies that have embraced farming out health insurance have also shifted from traditional pension plans to defined-contribution retirement support through 401(k) plans. By doing so, employers take themselves off the hook to find ways to save enough and invest well enough to produce pension payments for employees, instead letting employees make their own investment decisions.

Even in health care, other company initiatives have addressed rising costs. Perks like flexible spending plans and health savings accounts have allowed employees to play a more active role in their health care decisions, putting more of their own money at risk and giving them a greater incentive to be cost-conscious about their care. In many cases, that has been good for both employers and employees.

The inevitable shift
Admittedly, companies’ moves to reduce their responsibility for benefits aren’t good for everyone. But even for those negatively affected, the inexorable decay of what amounts to employer-provided financial planning makes it more important than ever to take control of your own finances and to make the most of the tools that your employer gives you through benefits. If you put in the effort, you’ll increase your odds of ending up better off in the bargain.

The article Why Employers Are Making Workers Get Money-Smart originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of General Electric and IBM. 

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