Workspan Daily News Bytes for Oct. 24, 2025

Report Shows Retirement Savings Optimism for Younger Workers

Forty-two percent of American workers are currently on track to achieving retirement security, according to the latest Vanguard Retirement Outlook, released Oct. 14.

The financial services firm’s research found access to employer-sponsored defined contribution (DC) plans remains a critical factor in retirement success. Specific findings included:

Workers with DC plan access are twice as likely to reach their savings goals compared to those without.
If DC plan access were available to all workers, retirement readiness could increase by 19 percentage points.
Working two years longer (until age 67) could add another 13 percentage points to readiness.

“Expanding access to [DC] plans and improving plan design has dramatically improved retirement outcomes,” said Fiona Greig, Vanguard’s global head of investor research and policy, and the outlook report’s co-author. “Features like auto enrollment and higher default saving rates are helping more Americans build retirement wealth.”

Across all income levels, Gen Z and millennials are projected to be better prepared for retirement than Baby Boomers and Gen X, due to broader DC plan access and stronger plan design. The study showed 47% of Gen Z and 42% of millennials are on track for retirement. However, debt burdens — especially student loans — remain a significant challenge for many.

Among older generations, 40% of Baby Boomers and Gen X workers are on track for retirement, with higher-income workers much better prepared. The study showed:

Median-income Baby Boomers are anticipated to replace 56% of their pre-retirement income, with an annual spending shortfall of $9,000, or 24% of their overall spending needs.
For Generation X, the outcome improves, with the median spending shortfall reduced to $6,000 annually (18% of their retirement spending needs).

Public Sector Passing on 12.3% Cost Increase to Employees

U.S. federal government employees will pay, on average, 12.3% more toward their health insurance premiums starting in January 2026, an average of $26.40 more per pay period, according to information released Oct. 9 by the Office of Personnel Management (OPM).

While significantly higher than the 9% projections for private-sector U.S. workers, the 12.3% premium spike is actually less than the 13.5% increase federal employees incurred for the 2025 plan year.

This year’s federal open enrollment season runs from Nov. 10 through Dec. 8. A related blog post by Shane Stevens, the OPM’s associate director for healthcare and insurance, said the agency’s insurance programs cover roughly 8.2 million federal employees and retirees (plus family members) — approximately 2.4% of the U.S. population.

Stevens’ post also highlighted OPM efforts to “increase the quality of care, improve health outcomes and reduce overall expenses” by making progress in three areas:

Mitigating waste, fraud and abuse;
Controlling pharmaceutical costs; and,
Embracing the “Make America Healthy Again” holistic wellness model.

Speaking of 2026 Healthcare Costs: The Global Picture

Rising healthcare costs are, of course, not just an American phenomenon. According to Aon’s Global Medical Trend Rates Report 2026, employers around the world are projecting those costs to rise an average of 9.8% next year — marking the first time since 2023 that the report put rate growth at less than 10%.

The risk management, insurance and HR solutions firm’s medical trend rate represents the projected annual percentage increase in employer-sponsored medical plan unit costs required to address:

Anticipated price inflation;
The cost of technology advances;
Higher plan utilization; and,
The rising cost of prescription drugs.

According to the Oct. 7 report, North America and Asia-Pacific are the only regions expecting higher rates in 2026 than 2025, with increases of 9.3% and 11.3%, respectively (up from 8.8% and 11.1%). Europe is projected to have the steepest decline, dropping to 8.2% from 8.9%. The Middle East and Africa region has the highest anticipated cost increase, at 15.3%, but that is less than the 15.5% figure for 2025. Latin America and the Caribbean came in at 10.3% for 2026, compared to 10.7% for 2025.

Cardiovascular disease, cancer and hypertension were cited as the top three conditions driving medical claims. More than 20 countries identified cardiovascular disease as their primary cost driver.

“Even as global inflation cools in some markets, healthcare costs remain under significant pressure,” said Kathryn Davis, Aon’s global benefits vice president. “Rising healthcare costs have become a pervasive business challenge, requiring organizations to proactively plan and adopt predictive analytics alongside innovative cost management strategies to stay ahead. These approaches are essential for navigating ongoing volatility and supporting long-term benefit strategy.”

Amazon Reportedly Eyeing Large-Scale HR Layoffs

Fortune reported on Oct. 14 that Amazon is preparing to cut as much as 15% of its HR staff, with additional layoffs likely to occur in other corporate divisions. The workforce actions appear to be part of the tech giant’s plans to reduce employee costs while investing heavily in artificial intelligence (AI) products and infrastructure.

The business news outlet cited two Amazon sources who said the HR division — known internally as the People eXperience Technology (PXT) team — will be hard-hit from the layoffs, but they could not specify the exact number of impacted employees or the timing of the job cuts.

The sources said the PXT team has more than 10,000 employees worldwide, and includes groups responsible for “traditional HR,” recruiting and technology.

Molson Coors Announces Job Cuts as Part of Restructuring

Molson Coors Beverage Co. on Oct. 20 announced a major reorganization of its Americas business in an effort to streamline its operations and accelerate growth.

The company will eliminate approximately 400 salaried positions by the end of December 2025, including hundreds of roles that were already open from actions earlier this year. The plan is estimated to result in the reduction of approximately 9% of the company’s Americas business salaried workforce.

“We’ve made progress on our transformation journey, but given the environment, we must transform even faster. To win with our customers and consumers and return to growth, we must move with urgency and make bolder decisions,” said president and chief executive officer Rahul Goyal.

In connection with the restructuring, the company expects to incur related charges of $35 million to $50 million in the fourth quarter of 2025, nearly all of which relate to cash severance payments and post-employment benefits. The cash payments are expected to be made over the next 12 months.

Figures and Facts of the Week

Here’s a smattering of recent statistics covering the world of work:

14: The percentage of workers who said they would rather have a cavity filled than talk about politics at work, according to Monster’s Politics in the Workplace poll.
18: The number of states that require private employers to provide “safe leave” for employees who are victims of violent crimes (e.g., domestic violence, rape, sexual assault). These states, according to Paycor, include Alaska, Arizona, California, Colorado, Connecticut, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont and Washington, as well as Washington, D.C. Workers typically can use safe leave to obtain medical care, seek psychological counseling, access social services, procure legal services, participate in legal proceedings or secure safe housing.
33: The percentage of Canadian employers that are tightening their budgets or pausing their investments, reflecting concerns of a recession, according to the Bank of Canada’s Business Outlook Survey, released Oct. 20.
40: The percentage of U.S. workers from larger organizations (1,000 or more employees) who said they dread starting their workday, up from 23% in 2020, according to Alight’s 2025 Employee Mindset Report.
61: The percentage of HR leaders globally who are “actively planning or already deploying generative AI,” according to Gartner research. The report said that figure stood at 19% in June 2023.
140,030: The median annual salary, in dollars, made by U.S. HR managers, according to data released by the Department of Labor’s Bureau of Labor Statistics.

Editor’s Note: Additional Content

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