We’re extremely worried about the other four.
Nearly six in 10 middle-income Americans say they feel more financially secure as a result of financial and insurance benefits they receive through their employer, according to a new study from MassMutual.
However, the company finds not all workers agree, especially those with lower incomes, which the right notes may indicate a need for more financial education through the workplace.
Fifty-eight percent of middle-income workers overall say they feel more secure because of benefits at work, according to the MassMutual Workplace Benefits Study.
Conducted by Greenwald & Associates, it adds that while 65 percent of upper-middle-income Americans or those with annual household incomes of $75,000 to $150,000 point to employee benefits as a source of greater financial security, only 42 percent of those with incomes of less than $45,000 say the same.
Those who do not feel as financially secure are less likely to have access to benefits such as a 401k or other retirement savings plan, or life, disability, accident or dental insurance.
“MassMutual’s study indicates that there may be a knowledge gap in the understanding and use of employee benefits among certain employee populations,” Jon Shuman, leader of MassMutual’s Voluntary Benefits unit, said in a statement. “More lower- and middle-income workers are likely to say that they wish their employer did more to help them set financial priorities than upper-middle-income workers.”
Although only one in four employees is offered financial education at work, MassMutual’s study finds, as many as half would welcome additional help or guidance on personal finances from their employer.
Moreover, 51 percent expressed a desire for their employer to provide more education about saving for retirement.
Millennials are dramatically more open and interested in receiving help at the workplace. Seven in 10 Millennials would welcome financial planning services and six in 10 would be interested in budgeting assistance at work, according to the study.
When polled, many workers express interest in specific employee benefits.
For example, 78 percent of survey respondents said they were “very interested” or “somewhat interested” in disability insurance, MassMutual’s study found, with interest high across all income levels.
“While workplace benefits can help employees feel more financially secure, each employee’s personal financial situation is unique,” Shuman concluded. “Employers and brokers can help through education and make a wide range of benefits available on a voluntary or employee-paid basis to meet as many individual financial needs as possible.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
