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Copyright 2009 Globe Newspaper CompanyAll Rights Reserved The Boston Globe

Tuesday 24 March 2009

SECTION: Business; Pg 8

LENGTH: 649 words


TITLE: More American workers on the benefits; Update on pension increases, a study

Signature: Associated Press



DES MOINES - In this environment, the benefits take on added importance for most workers. They are actively involved in the management of services provided by their employers, according to a study by MetLife Inc.

The annual Employee Benefits Trends study published yesterday shows workers rely more than ever at work to benefit their financial safety net.

MetLife's 7th Annual Employee Benefits Trends Study says 46 percent of workers surveyed say they are at a greater interest in understanding the benefits they receive through their employer.

More than half say they appreciate the benefits, more than ever, and 41 percent reported that their work benefits are the basis of their financial security.

`` Employees are looking increasingly to the workplace for advice, education and guidance so they can make better decisions about their benefit programs. . . to help them create a financial safety net for themselves,''said Bill Mullaney, president of MetLife Institutional Business.

But of course there are concerns.

A third of workers fear that their company reduces benefits in the next 12 months while the study shows that 15 per cent of employers said they planned to make such cuts. This also indicates that the company recognizes the importance of benefits to the morale of workers - 39 percent of employers believe that the morale in the workplace is strongly linked to quality employee benefits.

Due to recent market volatility, the study of employers and employees in both August 2008 and November 2008. Both sets of interviews were conducted by GfK Custom Research North America. Over 1,500 interviews were conducted with the benefit of decision makers of two or more employees and more than 1300 interviews were conducted with full-time employees, age 21 and over, at companies with a minimum of two employees.

The study has a margin of error of plus or minus 3 percent.

The results show that concerns about the economy have prompted workers to make changes in their personal finances.


Focusing on retirement has taken a more important role for many individuals. Six of 10 employees say they have been encouraged to examine the level of income they will need in retirement. This figure rises to 73 percent for baby boomers, participants born between 1946 and 1964.

Many workers worry about having enough money for retirement, and more than half say they intend to retire later than they expected only 12 months earlier.

The biggest concern, cited by 65 per cent of the workers, providing health care to retirement. The second greatest concern was a link between money and survive to retire with money to care for a spouse in the long run, the two issues mentioned by six in 10 participants.

Rounding on a set of benefits, many are also reviewing their insurance coverage. Over 40 percent say they have checked in the life insurance, and over a third are also discussed disability and long-term care insurance. Almost half of workers with children under 18 years old came to these benefits.

Yet times are hard. More workers are paycheque of life - 45 percent said that the financial situation of their present, which represents an increase of 37 per cent in 2006.

Over 40 percent of workers believe that their own economic situation will improve in the next six months while 20 percent think it will get worse.

An important outcome of this study is that business leaders, it shows the importance of achieving benefits for workers, "said Mullaney.

`` For the second consecutive year, the number of employers have a goal of providing programs to attract and retain the best talent,''he said. `` It is a real recognition that employers understand the role of benefits to attract talent. They are beyond the thought of the current economic situation to make their business successful in the future.''

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