For any of our clients from Ernst & Young who had assets invested in the stock market in 2008, odds are, you experienced post-traumatic stress following the market collapse and succeeding crisis.

When we think about post-traumatic stress disorder, we typically envision combat, tornadoes, and hurricanes. But we'd like to remind our Ernst & Young clients that PTSD is not limited to life-threatening events. Events threatening financial security (and even career security) can be very traumatic.

 

A study reported in the Oxford Health & Social Work Journal examined the risk of PTSD associated with sudden and dramatic personal financial loss.  The authors conducted a survey of 173 Madoff victims and found that 58% met the criteria for a PTSD diagnosis, 61% acknowledged high levels of anxiety, 58% were depressed and 34% had health-related issues. Moreover, 90% of these victims felt a substantial loss of confidence in any financial institutions.

We know from Dr. Abraham Maslow that when people have their security threatened through any event, all of their confidence and self-esteem can be destroyed, and they then focus all of their attention on searching for recovery.

Before finalizing any estate plan, it is worth examining how Ernst & Young's employer-sponsored benefits fit into the broader picture. According to publicly available information, Ernst & Young maintains an active defined benefit pension plan, which provides retirement income based on factors such as years of service and compensation history. Ernst & Young does not appear to offer a formal retiree healthcare program, making healthcare coverage planning an important consideration if you retire before age 65. Because the specifics of your pension formula, vesting schedule, and benefit eligibility depend on your individual employment history and plan documents, We encourage you to review your Summary Plan Description (SPD) or speak with Ernst & Young's HR or benefits team for the most current details.