Just 24 percent of employees are very confident about retirement saving plans, MetLife Employee Benefits research shows. Group Risk can help employers increase benefits engagement with employees and financial education.

The launch of pension freedom and the need for employees to take increased responsibility for their retirement planning is strengthening the case for employers to offer Group Income Protection cover,  research* from MetLife Employee Benefits shows.

Data from MetLife’s UK Employee Benefits Trends Study reveals just 24 percent of employees are very confident about their retirement saving plans and their biggest financial concern is security if the principal wage earner is no longer able to work (47 percent), followed by financial security to cover serious illness costs (45 percent) and financial security for their family if they were to die prematurely (43 percent). The study shows just 11 percent of UK employees are covered by income protection in the workplace leaving a huge protection gap which is particularly glaring when it comes to pension contributions, which are at risk if they are unable to work. The research highlights the key role income protection plays in maintaining pension contributions. If an employee was to fall sick and their contributions were not insured, pension payments would stop unless the employee could pay them out of savings. Income protection schemes address this with the option of cover for pension contributions so that, should an employee not be able to work for a period of time, their contributions are protected.

The decline of defined benefit pension schemes has also highlighted the need for group life cover – defined benefit pension schemes traditionally offered lump sum death benefits which are often not available in defined contribution schemes. Tom Gaynor, MetLife UK Employee Benefits Director, comments: “The option to cover pension scheme contributions as part of an income protection scheme shouldn’t be underestimated or overlooked. The fall of defined benefit pensions has left a big gap. “However, there is an opportunity for employers to address this gap by offering full or part-paid life cover to employees who are clearly worried about what would happen to their families if they were to die prematurely.”

MetLife is one of the fastest-growing life and pensions companies in the UK and its Employee Benefits division has offices in Brighton**. Employing around 150 people, it is the UK hub for the sales and administration of its employee benefits and individual protection businesses.  

* Research conducted   by Research Runner among a representative sample of UK employees and employers between August and October 2014

** MetLife’s Brighton office is situated at Invicta House, Trafalgar Place, BN1 4FR

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