STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

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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
Voluntary Benefits on the Rise, But Require Even Greater Educational Support Many employers expect to compliment basic insurance benefits with a wider array of supplemental voluntary insurance benefits. Insurance coverage needs and options are more complex and voluntary benefits broaden the capacity of employers to provide coverage access. As employees are expected to select and pay for more of their benefits going forward, the success of these voluntary programs will depend upon employees receiving the necessary information and decision support tools to make the right decisions for themselves and their families. In addition, the brand and reputation of benefits providers will be increasingly important as employees decide whether or not to participate in voluntary plans based on their familiarity and image of a carrier. Often, employees may prefer to deal with companies they know and trust. PROJECTED INCREASE IN SPECIFIC VOLUNTARY BENEFITS OFFERED 2006 currently offer Total expect offering in next 18 months Disability insurance Life insurance LTC insurance 35% 47% 39% 48% 16% 25% Expected Change +12 +9 +9 13
Page 1 and 2: PRUDENTIAL’S GROUP INSURANCE STUD
Page 3 and 4: Welcome The cost of employee benefi
Page 5 and 6: Methodology This study surveyed a b
Page 7 and 8: Benefits Matter Eight in Ten Plan S
Page 9 and 10: Commitment to Benefits Spans Most C
Page 11 and 12: Benefits Decision Making Is Increas
Page 13: The Gap Among Top Financial Concern
Page 17 and 18: Most Plan Sponsors Do Not Require C
Page 19 and 20: Plan Sponsors and Participants Are
Page 21 and 22: Employee Concerns Extend Beyond Fin
Page 23 and 24: Interest in Lifestyle Benefits Vari
Page 25 and 26: Positive Online Outlook Online Tool
Page 27 and 28: Web Technology is Empowering Employ
Page 29 and 30: Plan Sponsors Want Enhanced Perform
Page 31 and 32: Criteria for Progressive Plan Spons
Page 33 and 34: Progressives Are More In Sync with
Page 35 and 36: Progressives Also Outpace Other Com
Page 37: Progressive Employers Value Persona
Page 40 and 41: Summary of Key Findings Theme One:
Page 42: About Prudential Financial Currentl

STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

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