MetLife Study Finds Employees Seek Access to Professionals through Their Employers
NEW YORK, NY, August 9, 2006 – For employers seeking to recruit and retain experienced workers, offering financial advice and guidance in the workplace may prove to be an effective tool. According to MetLife’s 2005 Employee Benefits Trend Study, single employees and employees with children under the age of six, in particular, place a higher value on benefits, workplace education and financial advice than other employees.
"Singles and people with families are acutely aware that traditional social and corporate safety nets, such as Social Security and defined benefit pension plans, will likely not provide them with the same financial security as they did for their parents’ generation. Yet despite the recognition that they’ll need to take on more of the responsibility for building their own financial security, many young employees today feel unprepared to meet long-term savings, planning and retirement goals," said Paul Michael, vice president, MetLife Advice.
"For employers who are looking to recruit and retain qualified workers, there is a silver lining. Singles and young families still see the workplace as a trusted source of financial products and services. They are asking their employers to provide them with access to a financial services professional who can help them select the best mix of investment and protection products," added Michael.
According to MetLife’s 2005 Employee Benefits Trend study, 40% of young families now purchase the majority of their financial products (e.g., mortgages, home/auto insurance, loans, mutual funds, retirement savings vehicles, banking services, life/health/disability insurance, long-term care insurance) at work. However, when asked about their comfort level in making sound financial decisions, only 37% of young families and singles responded that they felt confident in their abilities to do so on their own. Perhaps, as a result, only 16% of singles and 37% of young families feel in control of their finances.
These statistics confirm that access to financial education and personalized advice at the workplace, while likely important to many employees, are key to the young families and singles demographic. Over half (52%) of young families surveyed stated they would like access to a financial planner at work. And, nearly half (49%) of families with children under 6 and 45% of those with children ages 6 through 17, for example, express a desire for access to financial planners in the workplace specifically to help them make decisions about 401(k) plans – compared with 43% of employees overall.
For singles, there is an understanding they need help becoming more financially savvy, and most are looking for guidance from the workplace to help them do so. This is particularly true when it comes to protecting their income and saving for the future. In fact, 32% of them are interested in having access to a financial advisor in the workplace. Their desire for financial advice should serve them well since 35% of singles do not allocate any of their monthly household income to retirement vehicles such as 401(k)s, IRAs or annuities. Only 18% of singles report they try to invest as much as they can, compared with 25% of married couples.
The Importance of Benefits
Young families also express a stronger interest in voluntary benefits – benefits for which they would pay all or most of the cost – than their peers. According to the study, 44% of those with children under 6 say they want a broader range of voluntary offerings at their workplace, compared with 34% of employees overall.
"In addition to their interest in access to professional guidance and advice, employees, in general, are open to having access to a broader range of voluntary benefits which they can purchase on their own," Michael continues. "The interest is greater among singles and young families who are more than willing to take on the responsibility of choosing their benefit offerings, yet they need professional assistance when faced with these choices in making decisions that align with their personal objectives."
The MetLife Employee Benefits Trends Study was conducted during the third quarter of 2005 and consisted of two distinct surveys fielded by GfK NOP. The employee survey polled 1,213 full-time employees, age 21 and older, at companies with at least two employees. The employer survey consisted of 1,514 interviews with benefits decision-makers at companies with at least two employees. For a copy of the study, visit http: www.whymetlife.com/trends1.
MetLife Advice is a comprehensive benefits solution featuring no-cost, add-on components available to employers looking to provide financial guidance to their employees, in conjunction with their existing benefits package. MetLife Advice provides employees in all demographics with not only the products to help build their financial future, but also the education and guidance to prepare for it.
MetLife, a subsidiary of MetLife, Inc. (NYSE: MET), is a leading provider of insurance and other financial services to millions of individual and institutional customers throughout the United States. Through its subsidiaries and affiliates, MetLife, Inc. offers life insurance, annuities, automobile and homeowner’s insurance and retail banking services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions. Outside the U.S., the MetLife companies have direct insurance operations in Asia Pacific, Latin America and Europe. For more information, please visit www.metlife.com.
