This was the conclusion of a recent study by MetLife which found that more than half (54%) of financial services employees surveyed say they are behind schedule for achieving their retirement financial goals. According to a MetLife press release on the study, this is a greater number than the proportion of employees across all industries that say the same (47%).
Less than one-third of employees in the financial services industry report they are on track with their retirement savings goals.
Other key findings of the study, according to the release, include:
- Fewer than half of surveyed financial services employees are confident that they can articulate the difference between worker’s compensation coverage and disability income insurance.
- One in four admits knowing little or nothing about long term disability insurance protection and term life insurance.
- Sixty-one percent of employees surveyed are unfamiliar with variable universal life, almost half (48%) are unfamiliar with long-term care insurance, and 29% are unfamiliar with accidental death and dismemberment policies.
“Despite higher than average levels of compensation, employees in the financial services industry – encompassing finance, insurance, and real estate – have similar levels of coverage for basic financial protection coverage – such as life and disability insurance – as those of workers in other industries,” MetLife said.
However, among financial services employees, MetLife’s research reveals that over 40% of employees making under $50,000 a year do not have disability insurance, while 34% do not have term life insurance. In addition, 10% of these employees are unsure whether they own disability insurance, and 17% are unsure whether they own term life coverage.
For financial services employees making over $100,000, more than 35% of financial services employees have not considered annuities in order to provide income in retirement, 45% have not evaluated the costs of long-term care for elderly parents or spouses, and nearly half (45%) have not discussed how they will afford medical care in retirement with a financial professional.
A paper offered by MetLife suggests ways financial services employers can improve benefits knowledge employees with a wide range of ages and salaries as well as income structures. A complimentary copy of What Financial Services Companies Can Do to Stand Out in a Competitive Talent Market: Innovative Employee Benefits Solutions for the Financial Services Industry is available at www.whymetlife.com .