Benefits July 12, 2007

MetLife: Employers To Expand Retiree Benefits Over Next Five Years

July 12, 2007 (PLANSPONSOR.com) - Slightly more than 60% of employers who currently offer retirement benefits expect to build up their benefits offerings over the next five years, with a surprising part of the that anticipated growth being led by small employers, according to MetLife's most recent retirement trend study.
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According to MetLife’s Study of Employee Benefits Trends, w hile retiree benefits offerings are more prevalent at the largest employers, smaller employers say they will expand the amount of benefits they provide to their retired workers.

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For example, more than two-thirds of employers with between two and 499 employees that currently provide retiree benefits plan to increase the amount of these benefits over the next five years. Some 40% of companies currently offer retiree benefits, such as medical, dental or life insurance, and 63% of these employers expect to expand these offerings during the next five years.

According to the MetLife research, the three most widely offered post-retiree benefits are:

  • Medical insurance, 31%;
  • Life insurance, 22%; and
  • Dental insurance, 18%.

In terms of health care costs in retirement, 61% of all employees ages 21 and older say they are very concerned. The study also suggests a spiked interest in long-term care, with 46% saying that was the case.

Meanwhile, more than half (58%) of employees who are 51 and older are very concerned about having enough money to make ends meet, with 35% of those ages 51 and older saying they live paycheck to paycheck. Nearly half (48%) of these workers say that 70% or more of their monthly household income goes to paying bills and living expenses, which makes saving difficult.

For a complete copy of the study go here .

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