Transcript Metropolitan Life Insurance Company 200 Park Avenue, New

Study of International Employee
Benefits Trends
Overview
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
India
Mexico
L0710119824(exp0711)MLIC-LD
Australia
Australia
U.K.
Study
Methodology
Australia – Profile
MARKET PROFILE

16th largest global economy37

GDP of $681 billion38

Annual national income per capita: $35,99039

Developed economy, capitalist system

Dominated by services sector (70% of GDP)40

Working age population (ages 15-64) expected to grow from 13.7 million in
2005 to 15.5 million in 203041

Median age 36.7 years42

Life expectancy at birth: 80.6 years43
Overview
India
U.K.
Study
Methodology
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)MLIC-LD
Australia – Profile
BENEFITS AT A GLANCE

Superannuation is a government-regulated, mandatory
retirement savings program for all Australian workers; 9% of
employee salary is contributed annually by employers;
additional contributions are voluntary.44

All superannuation funds have an investment component; many
also have, on either a voluntary or mandatory basis, an
insurance component: term life, disability and income
protection.45

Employees may purchase additional insurance benefits if
offered, and costs are deducted from their investment
account.46

Government covers all Australians, but private health insurance
is common.47
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)MLIC-LD
Australia – Employer Perspective
Australian employers are feeling pressure to attract and retain talented workers.
TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES
AUSTRALIA: MOST IMPORTANT BENEFITS OBJECTIVES OF ALL EMPLOYERS
In 2007, 61% of
Australian
employers
surveyed
experienced
difficulty in
finding the right
people to fill jobs,
up from 32% in
2006 and
significantly
above the global
average of 41%53
89%
RETAINING EMPLOYEES
INCREASING EMPLOYEE
PRODUCTIVITY
87%
INCREASING EMPLOYEE JOB
SATISFACTION
82%
ADDRESSING DIVERSE NEEDS
OF EMPLOYEES
71%
HELPING EMPLOYEES MAKE
BETTER BENEFITS DECISIONS
ATTRACTING EMPLOYEES
HELPING EMPLOYEES MAKE
BETTER FINANCIAL DECISIONS
REDUCING HUMAN RESOURCES
ADMINISTRATIVE COSTS
68%
66%
65%
64%
Percentages have been rounded to nearest whole number.
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)MLIC-LD
Australia – Employee Perspective
41% of Australian employees surveyed hope to retire in their 50s – 45% in their 60s, given
their ambitions plans for retirement and long life expectancy, most Australians are worried
about having enough money to afford it.
AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT RETIREMENT
43% understand
retirement needs
42% planned for
retirement
42% determined
life insurance
needs
35% determined
income
protection needs
49%
OUTLIVING RETIREMENT
MONEY
BEING ABLE TO AFFORD HEALTH
CARE IN RETIREMENT YEARS
44%
HAVING TO WORK FULL-TIME OR
PART-TIME TO LIVE COMFORTABLY
IN RETIREMENT YEARS
43%
PROVIDING FOR YOUR
SPOUSE/PARTNER’S LONGTERM CARE NEEDS
39%
PROVIDING FOR YOUR OWN
LONG-TERM CARE NEEDS
38%
HAVING ENOUGH MONEY TO
29%
TOP THREE
FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES
TAKE CARE
OF ELDERLY
PARENTS OR IN-LAWS
Percentages have been rounded to nearest whole number .
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)MLIC-LD
Australia - Conclusions
Benefits Strategies for Tomorrow, Today
Australia’s superannuation funds have succeeded in providing workers with fundamental coverage
for retirement and family protection in case of disablement, but this success appears to have bred a
degree of complacency among workers when it comes to savings and insurance. However, the need
for additional financial advice and education about their value opens a door for growth in employerprovided benefits. As employees become aware that economic and demographic realities could
threaten their visions of financial security and retirement lifestyle, they will increasing look to
augment their current superannuation coverage. This will provide an opportunity for employers
looking to improve employee retention rates, as well as for super funds looking for ways to grow
their asset base:

In creating benefits plans, employers should first focus on educating employees about
financial risks and appropriate coverage.

Financial planning services will likely prove appealing to the large share of Australian
employees that are worried about paying for retirement but have done little to prepare.

Employers may find good results in constructing benefits packages that provide a high
degree of personalization, with offerings that span insurance, investments and work/life
options.
Study
Methodology
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166
L0710119824(exp0711)MLIC-LD