Most benefit advisers understand their role when it comes to educating employers and employees, but what about their responsibility to their own colleagues? There are numerous studies showing employees do not understand their benefits, and employees in the financial services industry are no exception.
More than half (54%) of financial services employees surveyed say they are behind schedule for achieving their retirement financial goals, which is below the average of 47% for employees across all industries, according to a new report by MetLife called What Financial Services Companies Can Do to Stand Out in a Competitive Talent Market: Innovative Employee Benefits Solutions for the Financial Services Industry. What's more, only about one-third of employees (30%) in this industry say they are on track regarding their retirement savings goals.
The lack of education and action doesn't end with retirement preparation. One in four admits knowing little or nothing about long term disability insurance protection and term life insurance -- two of the more common workplace benefits. Sixty-one percent of financial services 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.
The financial services industry enjoys above-average compensation in professions like finance, insurance and real estate, but have similar levels of coverage for basic financial protection as worker of other industries.
"This study demonstrates that financial services industry employees' familiarity with financial products and services does not necessarily equate to an understanding of workplace benefits and personal financial needs. Employers have the ability to create more potential retention power by bridging employees' knowledge gap around their benefits," says Randy Stram, vice president, MetLife Institutional Business.
