STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

Teach Them Well
Employers Plan to Do More to Help Employees Meet Their Financial Needs
Beyond providing access to insurance and retirement benefits, most plan sponsors
today offer limited advice or guidance in making benefits and other financial decisions.
However, over the next five years, employers hope to do more to assist their employees
in all categories studied, especially retirement planning, which has become a focus
for many companies given the country’s demographic and savings trends.
Unfortunately, employees’ need for non-medical insurance coverage is expected to
remain underserved over the next five years. Only about one-fourth of employers expect
to address their employees’ life, disability, and long-term care insurance needs by 2010.
These findings suggest an opportunity for plan sponsors to build employee satisfaction
and loyalty by providing the right benefits along with the appropriate educational
support. More guidance can enable their workforce to make better benefits choices
and become more financially secure.
EMPLOYEE FINANCIAL NEEDS/CONCERNS ADDRESSED BY PLAN SPONSORS
Doing in 2006 Plan to do by 2010
Education on saving
for retirement
Education on managing
retirement income
Disability insurance needs
Financial advice
Life insurance needs
Long-term care
insurance needs
College money/529 plan
33%
48%
30%
43%
20%
26%
21%
27%
18%
23%
16%
21%
12%
17%
2006–2010
Change
+15
+13
+6
+6
+5
+5
+5
12