Most Americans buy financial products at work, MetLife Finds

 

Wednesday, Mar 25,2009, 5:19:59 PM   Click:

Raymond J Lehmann
WASHINGTON, March 24, 2009 (AM Best via COMTEX) --

In the middle of a deep recession, most U.S. employees now purchase the majority of their financial products at work, a historical reference recorded in the brand new 7th Annual MetLife Study of Employee Benefits Trends.

Unveiled to the life insurer's annual Symposium Employee Benefits, Washington DC, the survey also found 41% of workers and 52% of large companies believe that their work benefits the "foundation" of their net financial safety.

Against-intuitive, the investigation revealed the beginners in the labor market to have a greater appreciation for the role of benefits in their overall compensation than those closer to retirement. While 53% of respondents report more attention to benefits of the work, the figures for those of Generation X and Generation Y were 65% and 73%, respectively.

The bill RACZKO, MetLife's marketing director for institutional business, these figures could mark a radical change in how young people approach the benefits that could strongly influence decisions during their careers.

"Think about Generation Y: They are mostly still in their 20 years. They have recently gained their independence as individuals. They are starting, the first major economic event that they encounter is not an explosion it is a bust, "said RACZKO. "I would say that the depth and duration of the recession, has the potential to be the case of learning how this generation thinks of retirement, employment contracts, benefits, and financial security."

The economic downturn begins to hit employees in most sectors of the economy, MetLife found evidence that many comments are broadly the benefits available to them in the workplace to ensure that they are adequately protected for a variety of life events.

RACZKO noted in six of 10 employees said they are motivated by the economy needs to review their retirement income. The number of those who cited "other insurance" benefits - such as group life, dental, vision and disability - as important factors for their loyalty increased to 69% against 51% a year early. Only 41% of employers said they thought the covers were essential to the retention of employees.

"What we discovered is that employees take a kind of personal or family inventory of what they have - their financial, retirement, protection guarantees - cause and effect, a result direct what is happening in the economy, "said RACZKO. "Forty-three percent of households report having taken steps to review their life insurance needs, in response to economic conditions. Thirty-eight percent say they do the same when considering their disability.

The insurer also found a strong discrepancy between employers and employees point of view of the likelihood of cuts in benefits, given the recession. While nearly a third of all workers said they were concerned about their benefits in reducing the next year, only about 15% of employers said they planned reductions.

Even if a large number of both employers and employees agreed that the social workers were important for the conservation and fidelity, and the two treatment groups and health benefits that ordered the two pilots of loyalty, a MetLife also found significant differences between workers and employers on factors that were most likely to inspire an employee to stay with a company. The study notes that 72% of employees ranked retirement benefits as an important factor, compared to only 40% of employers. However, employers are more likely to overestimate the importance of corporate culture and opportunities for advancement, MetLife found.