Renewal Season 2026: Connect the Dots Between Care Access, Tax Shifts, Retirement Benefits & Client Strategy
As clients approach renewal season for 2026 benefits, three major forces are reshaping employer and employee priorities—and redefining your advisory opportunity:
Nearly half of Americans are delaying care due to cost
New federal tax deductions for tips and overtime
401(k)s remain essential—even amid inflation concerns
Renewal season demands a consultative, data-fueled approach
Why Access to Care Is a Rising Concern
A new Madaket Health survey found that 47% of insured Americans report delaying or skipping care because of cost or network barriers, with nearly 78% of Millennials doing so compared to 30% of Baby Boomers. About 74% will delay if providers are out‑of‑network.
Another Pollfish-based study reports 38% of insured adults skipped medical services or medications, and 42% of those said their condition worsened as a result MedicalEconomics+1.
Impact on benefits strategies:
Employers should assess whether current networks are truly accessible and affordable.
Renewal planning can spotlight options like virtual care access or cost-sharing designs to remove barriers to care.
Payroll Tax Changes: New Deductions for Overtime and Tips
The new “No Tax on Overtime and Tips” provisions, part of the One Big Beautiful Bill effective Jan. 1, 2025 through 2028, allow:
Up to $12,500 in deductions for overtime premium pay (or $25,000 for joint filers)
Up to $25,000 deduction for tips in traditionally tipped occupations
Key points:
Employers should continue withholding federal income tax through 2025; employees will claim deductions during tax filing. Withholding tables will change in 2026.
New reporting requirements are being phased in, so payroll and HR teams need to stay alert.
Impact on benefits discussions:
Cost-of-living relief via deduction could reduce perceived need for benefit cost shifts.
Employers and advisors should educate workers about eligibility and filing mechanics.
Retirement Benefit Resilience Amid Inflation
Despite inflation being cited as a top retirement obstacle by 57%, 401(k)s remain a cornerstone benefit. Charles Schwab participant surveys and ASPPA consensus confirm: 401(k) plans remain non‑negotiable for workers—even in the face of economic uncertainty.
Strong signs in 2025:
Fidelity reports contribution rates at a record 14.3% of pay in Q1, nearing the 15% benchmark that advisors recommend ASPPA.
Despite market volatility, retirement savings behaviors remain disciplined.
Actionable insight for plan sponsors:
Use renewal season to promote auto‑enrollment, contribution escalation, and Roth options.
Reinforce how contributions can offset healthcare cost risk in retirement—which studies now estimate at $172,500 for a 65‑year‑old retiree, excluding long‑term care.
Renewal Season Playbook: Listen, Learn & Lead
BenefitsPRO advises advisors: renewal season is your chance to lead by leveraging insights—not just assumptions. While 80% of employers believe employees are satisfied, only 58% of employees agree.
Actionable insight for plan sponsors:
Listen: Survey employees about care access issues and financial stress.
Learn: Use claim data to pinpoint issues like skipped care (e.g., out‑of‑network usage, preventive screens dropped).
Lead: Proactively present integrated solutions—enhanced networks, HSA strategies, retirement education, and tax-advantaged benefit communication.
Why These Themes Matter Together
| Theme | Employee Impact | Employer / Advisor Opportunity |
| Postponed care | Worse health outcomes, higher long‑term costs | Adjust benefits design to reduce barriers, improve utilization |
| Tax shifts | Increased take-home income for tipped/overtime workers | Employers can communicate clarity and build trust |
| Retirement plans | Inflation concerns persist, yet contributions grow | Promote benefit value with savings tools and education |
| Renewal season | Mismatch between perception and satisfaction | Lead with data-driven recommendations and meaningful benefit changes |
For Renewal Season 2026, The most savvy leaders and advisors will:
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- Address real cost‑driven care delays
- Highlight emerging tax deductions for overtime and tips
- Reinforce the strength of 401(k) benefits in turbulent times
- Use these themes to guide renewal conversations proactively
By weaving these topics into your renewal messaging, you’ll not only support better outcomes for employees—but also differentiate your advisory value heading into a year of change.
Sources
BenefitsPRO: Nearly half of Americans say they put off health care due to barriers of cost, Aug 5, 2025
Madaket Health / BusinessWire survey on delayed care
Pollfish study of care delays
IRS/OBBB bill tax provisions for 2025–28 overtime and tips
Transitional guidance on withholding and reporting
ASPPA and Schwab findings on inflation and 401(k) value in 2025
Fidelity’s healthcare costs in retirement and retirement challenges stats
BenefitsPRO renewal playbook commentary