Employees Fail to Act on Financial Security Fears
--Improved Longevity Requires More Retirement Planning and Savings
--Employee Benefits such as Financial Planning Can Help Shift Attitudes, MetLife Study Finds
The report reveals a global picture of chronic under-saving, lack of retirement planning and irregular ownership of essential financial products across emerging and developed markets despite lessons of the worldwide financial crisis.
Having enough money to cover either a sudden loss in income or simply to make ends meet ranked in the top three of employee financial concerns in all countries in the study.
Job security emerged as the first or second concern regarding financial security in the
The
However, MetLife’s study shows a strong appetite on the part of employees for improved financial planning and education – and the global insurance group is urging employers to give greater emphasis to providing employee benefits, including programmes like financial planning, as a strategic investment in the long-term success of their business. Research shows 68% of Indian companies offering employee benefits see an increase in productivity.
“Even as economies worldwide recover from the great financial crisis and get back on a growth track, our multinational research shows that employees in both developed and emerging markets are deeply concerned about their short- and long-term financial well-being and security,” said
“Our 2011 study also substantiates a worrisome trend regarding the disparity between increasing longevity in most countries and a widespread lack of preparation in both developed and emerging markets to fund what in many cases could be more than two full decades of retirement.”
Further key trends identified across the countries covered by the report include:
Inconsistent use of Employee Benefits:
Short-term financial insecurity: Despite nearly half of Brazilian workers looking no further than their next paycheck and only 40% of
Longer retirements but retirement savings lag: Workers across all countries surveyed were worried about living on retirement money yet 75 % of Australian and 55 % of
The 2011 study from
Marks added: “Companies should think globally and act locally, especially with the growing complexity of retirement, financial, and health and wellness programmes that are available today.”
Key country findings
Australia :- About a third of Australian companies that do not currently offer insurance benefits would consider offering income protection, disability, and term life in the next three years.
Brazil :- 80 percent of employees say that health insurance is the most essential benefit followed by salary continuation in case of illness, life insurance and health check ups.
India :- 75 percent of those Indian employees who do not own any financial products through the workplace say it is because they are not offered by their employer.
Mexico :- Over a third of Mexican employees do not know when they will retire. Mexican workers who do, expect to retire on average at age 60, with average life expectancy now at 76 years in
Mexico .
- Over a third of Mexican employees do not know when they will retire. Mexican workers who do, expect to retire on average at age 60, with average life expectancy now at 76 years in
U.K. :- Employees are not taking full advantage of current benefit offerings from their companies. 72 percent of employers offer private medical insurance but only 28 percent of employees take it, while 69 percent offer life assurance benefits and again only 28 percent avail themselves of this benefit.
For more information, download the complete survey here:
www.metlife.com/iebts
Survey Methodology
The second MetLife International Employee Benefits Trends Study was conducted between
About
About GFK
U.S.:
or
or
Source:
OR Innovation’s New Product Mopzilla Takes Cleaning and Safety in Restaurants to the Highest Level
Terra Global Capital Signs Groundbreaking OPIC REDD Insurance Contract
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News