How Supplemental Benefits Impact Retirement Security

Oct 10, 2025

Many Americans willingly provide financial support to family members, even when it could hurt their own economic security, according to the Alliance for Lifetime Income’s 2025 Protected Retirement Income and Planning Study.

The study revealed that more than half of Americans who provide financial support to family members say this assistance harms their retirement savings. Nevertheless, most are far more likely to lower their standard of living (58%) or return to work (54%) than reduce or stop their support (15%).

Many American families are unprepared to handle unexpected expenses on their own.

The ACLI’s Financial Resilience Survey found that 41% of middle-class households would need to borrow money or take on debt to pay for an unexpected $5,000 expense, including 8% who would borrow from family or friends.

However, supplemental benefits coverage provided by life insurers can help families manage unexpected expenses due to sickness or injury.

Supplemental benefits pay for expenses that aren’t covered by major medical insurance, including travel costs incurred to receive necessary treatment. So, people with supplemental benefits coverage can use these funds to pay their bills, rather than having to dip into their savings or incur debt. Similarly, family members with supplemental benefits coverage can lessen the financial burden on the family’s breadwinner and allow them to devote more assets toward their own secure retirement.

ACLI supports policies that keep supplemental benefits products accessible, available, and affordable for any person who wants financial protection.

Cindy Goff

Cindy Goff is Vice President, Supplemental Benefits and Group Insurance at the American Council of Life Insurers (ACLI), where she develops and implements state and federal public policy positions and strategies to ensure access to innovative financial protection products. She has also served as Director of Health Policy for Aflac and VP of Product Policy at America’s Health Insurance Plans.