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Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD
Overview MexicoIndia Australia U.K.Study
MethodologyOverview
Study of International Employee Benefits Trends
Australia
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD
Australia – Profile
India
U.K.
Study
Methodology
Overview
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
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
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
TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES
RETAINING EMPLOYEES
AUSTRALIA: MOST IMPORTANT BENEFITS OBJECTIVES OF ALL EMPLOYERS
INCREASING EMPLOYEE PRODUCTIVITY
INCREASING EMPLOYEE JOB SATISFACTION
ADDRESSING DIVERSE NEEDS OF EMPLOYEES
HELPING EMPLOYEES MAKE BETTER BENEFITS DECISIONS
ATTRACTING EMPLOYEES
HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS
REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS
89%
87%
82%
71%
68%
64%
66%
65%
Percentages have been rounded to nearest whole number.
Australian employers are feeling pressure to attract and retain talented workers.
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD
Australia – Employee Perspective
Percentages have been rounded to nearest whole number.
TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES
OUTLIVING RETIREMENT MONEY
AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT RETIREMENT
BEING ABLE TO AFFORD HEALTH CARE IN RETIREMENT YEARS
HAVING TO WORK FULL-TIME OR PART-TIME TO LIVE COMFORTABLY
IN RETIREMENT YEARS
PROVIDING FOR YOUR SPOUSE/PARTNER’S LONG-
TERM CARE NEEDS
PROVIDING FOR YOUR OWN LONG-TERM CARE NEEDS
49%
44%
43%
39%
38%
HAVING ENOUGH MONEY TO TAKE CARE OF ELDERLY
PARENTS OR IN-LAWS
29%
43% understand retirement needs
42% planned for retirement
42% determined life insurance needs
35% determined income protection needs
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.
Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD
Australia - Conclusions
Study
Methodology
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 employer-provided 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.