A research by MetLife found that despite fears about their financial security amid growing realisation that they need to plan long-term in the wake of the global financial crisis, employees are yet to act on them.
The MetLife 2011 International Employee Benefits Trends clearly show a global practice of chronic under-saving, “irregular ownership” of financial products and lack of retirement planning across both emerging and advanced economies.
One of the biggest financial concerns of employees across all countries was to cover a sudden loss of income or simply be able to carry along.
Job security was the either the top or second concern regarding financial security in the UK, Mexico or Australia, indicating the fragile recovery of global economy.
However, workers in India and Brazil were more confident about jobs underscoring a potential shift in global economic power.
A vast majority of people, irrespective of nationalities, take a short term approach towards financial planning, the report found. However, there was a strong appetite for financial education and planning, the study found.
The insurance major urged employers to give more benefit to employees worldwide, including greater access to programmes to financial planning.
“Even as economies worldwide recover from the great financial crisis and get back on a growth track, our multinational research shows that employees in both developed and emerging markets are deeply concerned about their short – and long-term financial well-being and security”, said William J Toppeta, president of Metlife.
“Our 2011 study also substantiates a worrisome trend regarding the disparity between increasing longevity in most countries and a widespread lack of preparation in both developed and emerging markets to fund what in many cases could be more than two full decades of retirement”, he added.