Workplace Benefits Influence Employee Feelings Of Financial Security, Study Says

March 9, 2018 | By Jadah Riley – Financial Advisor

Most Americans feel more financially secure because of the financial and insurance benefits they receive through their employer, according to a study by Massachusetts Mutual Life Insurance Co. (MassMutual).

However, this perspective changes depending on the income level of workers. Fifty-eight percent of middle-income workers and 65 percent of upper middle-income workers say they feel more secure because of benefits from their employer. Only 42 percent of lower-income workers reported feeling the same security. A lack of financial education among workers may be contributing to lower levels of confidence.

Individuals who report feeling less financially secure are less likely to have access to benefits such as a 401(k) or other retirement savings vehicles, or life, disability, accident or dental insurance, according to the report.

Employees are interested in their benefits and how to protect their finances in emergencies. Workers showed the highest level of interest in specific benefits including disability insurance (78 percent), continuing retirement contributions while disabled (74 percent), insurance for critical illness (74 percent), accident insurance (67 percent), and low cost emergency loans (57 percent) among all income levels.

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