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United Kingdom Study of International Employee Benefits Trends Overview Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 India L0710119824(exp0711) Mexico Australia U.K. Study Methodology United Kingdom - Profile MARKET PROFILE 6th largest global economy57 GDP of $2.1 trillion58 Annual national income per capita: $40,18059 Developed, wealthy nation Dominated by services sector (73% of GDP)60 Working age population (ages 15-64) expected to grow from 39.7 million in 2005 to 40.7 million in 203061 Median age 38.9 years62 Life expectancy at birth: 78.9 years63 India Australia Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711) United Kingdom - Profile BENEFITS AT A GLANCE The National Health Service provides publicly funded health care. However, private health insurance is common.64 The government provides the Basic State Pension, and provides for tax incentives for workers to fund their own personal pensions.65 Overview India The insurance and financial products markets are highly developed and competitive.66 Australia Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711) United Kingdom – Employer Perspective Most U.K. employers offers some benefits, which companies see primarily as a means of retaining and attracting employees. TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES U.K.: MOST IMPORTANT BENEFITS OBJECTIVES OF EMPLOYERS THAT OFFER BENEFITS Overview 83% RETAINING EMPLOYEESS India ATTRACTING EMPLOYERES 78% INCREASING EMPLOYEE JOB SATISFACTION 75% INCREASING EMPLOYEE PRODUCTIVITY 71% CONTROLLING HEALTH AND WELFARE BENEFIT COSTS 54% U.K. Percentages have been rounded to the nearest whole number. Study Methodology Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711) United Kingdom – Employer Perspective The majority of U.K. companies offer their employees pensions and private medical and life insurance however few employers have sought to differentiate themselves by expanding benefits beyond this minimum. TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES U.K.: BENEFITS OFFERED BY EMPLOYERS THAT OFFER BENEFITS Overview 94% PENSIONS PRIVATE MEDICAL INSURANCE (PMI) 82% LIFE ASSURANCE 66% LONG-TERM DISABILITY OR PERMANENT HEALTH 43% 31% CRITICAL ILLNESS INSURANCE TRAVEL INSURANCE AUTO INSURANCE India 30% U.K. 27% Study Methodology Percentages have been rounded to the nearest whole number. Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711) United Kingdom – Employee Perspective For a group that has been relatively pro-active in assessing and planning for their financial needs, U.K. employees surveyed seem less than fully prepared in many other health-related issues. 40% of U.K. employees surveyed are extremely concerned with having more time to spend with families. 45% of U.K. employees have critical illness insurance. 35% have long-term disability, or permanent health insurance. 26% have dental insurance. 11% have long-term care insurance. Behind job security and having enough money to live on. Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711) United Kingdom – Employee Perspective Among those who do own these products, most purchased them outside the workplace. TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES U.K.: WHERE EMPLOYEES OBTAINED DIFFERENT FINANCIAL PRODUCTS 48% PENSION Overview 22% 12% 10% India CRITICAL ILLNESS 34% 1% 18% 51% LIFE ASSURANCE 13% 11% PERSONAL ACCIDENT COVERAGE 32% Australia 3% 28% PRIVATE MEDICAL INSURANCE (PMI) Workplace 14% 1% Outside Workplace Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 Both L0710119824(exp0711) U.K. United Kingdom - Conclusions Benefits Strategies for Tomorrow, Today U.K. companies recognize the potential value of benefits programs in attracting and retaining workers— a task that looks to become increasingly challenging due to demographic changes occurring the workforce: Consider financial education programs to assist employees in making the many important decisions facing workers forced to shoulder more responsibility for their own financial security. Employers can increase the impact of their benefits plans by offering programs that provide employees with better work/life balance. When expanding benefits plans, start with insurance. Overview India Australia U.K. Study Methodology Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)