study of international employee benefits trends employee benefits advantage: leveraging a global...

Study of International Employee Benefits Trends

MetLife has a proud tradition of investing in the financial and social well-being of the communities we serve. For nearly 140 years, we have focused on understanding and serving our customers through various life stages and economic cycles.

MetLife builds on this tradition by delivering leading insights through nationally acclaimed research, subject matter experts and educational resources. We serve as a leading voice on employee benefits issues by actively influencing public policy, educating the media and developing intelligent product solutions.

By aligning yourself with a company that applies insights to deliver innovative solutions, you can make things go right.

From its core to its outer edges a flower’s petals transition from tight and unyielding to open and inviting. So goes the current state of global employee benefits, which continues to evolve as countries and companies open up to new benefits strategies and models, while remaining sensitive to local cultural traditions.

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IntroductionEmployee benefits are more than an important tool for companies around the world—they play a critical role in social and economic infrastructures as well. Benefits programs supplied by employers often end up filling gaps in national health and retirement systems.

Recognizing the importance of employee benefits to companies and society as a whole, MetLife conducted its first annual Employee Benefits Trends Study in the United States in 2001. This year, we have expanded the scope of our research to include several countries.

This inaugural edition of the MetLife Study of International Employee Benefits Trends reports on the results of our survey of both employers and employees across four countries that serve as a representative sample of different economic and workplace environments. Two of the countries—the United Kingdom and Australia—are mature economies with many of the demographic trends and challenges that characterize developed nations around the world. The other two countries—India and Mexico—are newly industrialized countries that share certain economic and societal traits with other rapidly growing nations. Each country has a distinct demographic profile, and they are presented in ascending order of median age.

The data discussed in this report provide insight into the financial needs, habits and perceptions of employees in each of these countries, as well as many layers of detail about the benefits objectives and practices of employers. This information is distilled into a series of actionable conclusions that can help companies in these markets develop strategies and make informed decisions about their employee benefits plans—whether the employers are local or multinational. Indeed, the lessons learned from this survey should be fruitful for any employer doing business internationally.

For almost 140 years, MetLife has been supplying innovative benefits solutions to companies and their employees. This study is but one of the many tools provided by MetLife to assist employers, brokers, consultants and other benefits professionals. It will provide the foundation for future international research studies, in which we hope to expand our scope even further for an increasingly comprehensive view of benefits practices.

We invite you to contact your MetLife representative or specialist for a more detailed discussion about benefits strategies. In the meantime, we hope you will find the information and analysis presented in this first edition of the MetLife Study of International Employee Benefits Trends to be a valuable aid in assessing and improving the effectiveness of employee benefits plans.

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Contents

SECTION I Global Overview 5

SECTION II India 15

SECTION III Mexico 23

SECTION IV Australia 31

SECTION V United Kingdom 39

SECTION VI Methodology 47

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Global Overview SECTION I

The Employee Benefits Advantage: Leveraging a Global PerspectiveEmployers considering ways to improve the quality and effectiveness of their employee benefits plans can gain valuable insights by examining the experiences and practices of companies in their home markets and in other countries.

Benefits practices vary significantly from country to country based on government social programs, size and competitiveness of labor markets, and national culture and tradition. For example, in Australia retirement saving is conducted through governmentmandated superannuation funds, and as a result, employers generally do not offer employee pension programs. The situation is much different in the United Kingdom, where privatesector pension plans have a long and important history, and nearly 95% of employers offer pensions. Because such differences also exist in healthcare and various types of insurance, many decisions about benefits strategy are best made at the local level with a full understanding of business norms and employee expectations.

However, employers should not overlook the impact of globalization on established benefits practices. Globalization is altering national economies and transforming workers’ needs and expectations. At the same time, multinational companies expanding into new markets are importing their own notions of benefits strategies and integrating them into the host nation’s economy and culture. Over time, this process is producing new models that can influence the benefits decisions not only of multinationals, but also of local companies looking for the right benefits models for their own rapidly changing domestic markets.

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The challenge of setting standards

Through its international benefits research, MetLife identifies global trends and best practices that help companies make better decisions. At both the national and multinational levels, companies face a series of challenges when it comes to setting benefits standards, including:

• Accommodating local cultural expectations and regulatory requirements.

• Navigating countryspecific differences in retirement/health care infrastructure.

• Acknowledging the varying degrees of knowledge and experience among benefits and human resources staff in different countries.

• Overcoming the varying degrees of familiarity and usage of financial and benefits products among employees from different regions and backgrounds.

• Among multinational companies, balancing the need for consistent global practices with the need for flexibility to offer benefits that meet the unique needs of the local marketplace.

The insights provided in the four sections of this report can help companies address each of these challenges. For multinationals, countryspecific data and analysis will demonstrate the types of local distinctions that must be taken into account when creating national benefits strategies for local businesses. Meanwhile, domestic companies can gain a valuable, more global perspective and a window into the best practices of employers competing in other markets, but facing similar challenges.

DIVErSE ECONOMIES AND DEMOGrAphICS

GDp pOpUlATION MEDIAN AGE (years)

lIfE ExpECTANCy AT bIrTh (years)

INDIA $4.2 trillion 1.1 billion 23.8 63.5

MExICO $1.2 trillion 107.0 million 25.6 75.4

AUSTrAlIA $681 billion 20.2 million 36.7 80.6

UNITED KINGDOM

$2.1 trillion 59.7 million 38.9 78.9

UNITED STATES $13.2 trillion 299.0 million 36.0 77.7

GDP = Purchasing power parity in international dollars, 2006. All other figures as of 2005. Source: World Bank (GDP and life expectancy), World Health Organization (population), United Nations (median age).

Navigating the future

Economic Growth Creates New Expectations

Using history as a guide, we know that economic development in individual countries tends to follow a familiar pattern. As a nation becomes more developed, workers typically live longer lives, birthrates decline, and cultural dynamics change. Families—sometimes generations of families—that are clustered in a single geographic location begin to disperse as younger members in particular begin to migrate to urban areas with higheropportunity jobs.

This is change at its most fundamental level. For older family members, many of whom had once cared for their own aging relatives, economic prospects seem less certain as young workers leave the household. The younger generation, meanwhile, faces a new set of financial concerns, including job security and providing for their own nuclear families, parents and inlaws. In India, for example, one of the top concerns regarding basic financial security is about having adequate resources to care for aging parents or relatives: 83% of employees age 1830 say they are “extremely concerned” about this. In Mexico, 58% of employees age 1830 express the same concern. Despite these concerns, only 11% of Mexican and 36% of Indian employees surveyed have taken steps to determine their household’s longterm care insurance needs. This may be related to the longstanding tradition of children caring for parents, as well as the lack of longterm care resources in both of these countries.

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TOp ThrEE fINANCIAl CONCErNS AND wOrK/lIfE GOAlS Of EMplOyEES

#1 #2 #3

INDIA Health insurance Job security enough money to live on

MExICO Job security Paying bills during sudden income loss

Health insurance

AUSTrAlIA enough money to live on

Paying bills during sudden income loss

Job security

UNITED KINGDOM Job security enough money to live on

More time to spend with family

UNITED STATES Paying bills during sudden income loss

enough money to live on

Health insurance

As economies grow, consumer purchasing power rises as well. People gain more possessions and have a greater need to protect their growing assets. In Australia and the U.K., for example, 82% and 81% of employees surveyed, respectively, have auto insurance, compared to 27% and 17% in India and Mexico, respectively.

As economic growth takes hold in a country, pressure usually begins to build on its government and the private sector to establish or enhance social welfare programs. For example, Australia’s superannuation program, with roots dating back to 1850, was little changed for the first 130 years of its existence. But in the 1980s, the Australian government began to vastly expand what had been a very limited program to require more active participation by a majority of all public and private sector employees.1

In mature economies, demographic shifts continue to bring change. Increased longevity and falling birth rates in Australia and the U.K., like the U.S., are expected to put enormous stress on retirement and health care systems. Longstanding corporate benefits structures are also coming under strain; for example, many companies are facing challenges with pension liabilities—the money corporate pension plans are committed to pay current and future retirees.

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TOp bENEfITS CUrrENTly OffErED

#1 #2 #3

INDIA Health insurance Term life insurance Disability insurance

MExICO savings fund Health insurance Term life insurance

AUSTrAlIA Term life insurance Income protection Total permanent disability; Financial planning services

UNITED KINGDOM Pension Private medical insurance

Life assurance

UNITED STATES Medical Prescription drug coverage

401(k)/retirement plans

Globalization Accelerates Change

Globalization is accelerating the development process. Even in economies with significant labor surpluses, the growing demand for highly skilled professionals is intensifying the competition for workers in certain specialized industries and regions. This dynamic has had a direct impact on the value employers are placing on retaining employees and increasing employee productivity.

Reconciling the differences between developed and developing countries, multinational companies are entering new markets and targeting top talent with resources and strategies from their homelands, driving up salaries and influencing local benefits practices. Indeed, some of India’s largest software companies have expressed concern about wage inflation and are looking to outsource work to Mexico and China.2

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MOST IMpOrTANT bENEfITS ObjECTIVES CITED by EMplOyErS OffErING bENEfITS

#1 #2 #3

INDIA Controlling health and welfare benefits costs; Increasing employee productivity

Helping employees make better financial decisions

addressing more of employees’ different needs

MExICO Increasing employee productivity

Increasing employee job satisfaction

Controlling health and welfare benefits costs

AUSTrAlIA retaining employees Increasing employee productivity

Increasing employee job satisfaction

UNITED KINGDOM retaining employees attracting employees Increasing employee job satisfaction

UNITED STATES retaining employees Controlling costs Increasing employee productivity

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Growing Role for Employee Benefits

In both developing and developed markets, vast populations are underinsured and unprepared for retirement. For example, in Mexico, only 38% of employees have taken any steps to determine their household’s life insurance needs, and in India only 45% have done so for their disability insurance needs.

Even in countries with strong social programs, workers often do not consider whether governmentprovided benefits are adequate for their health care, incomeprotection and retirement needs. For example, “outliving retirement money” is the top financial concern regarding retirement in Australia, and yet only 43% of employees in Australia have taken any steps at all to understand their retirement income needs. Such lack of preparation could create problems if countries with aging populations and shrinking workforces are forced to adjust social welfare programs.

However, as it becomes apparent that national programs might fail to deliver the lifestyle and security sought by workers, more employees are seeking out supplements to state coverage. Employers can turn this to their advantage by offering help in the form of benefits. This appears to be occurring in the U.S., where companies have been steadily expanding the reach of their benefits plans. For example, 40% of U.S. employers in 2006 were offering medical, life and/or dental insurance to retired employees—up from 28% in 2004.

In general, employees do not take advantage of all the benefits solutions offered in the workplace. U.K. employers surveyed offer approximately 4 benefit products, yet employees generally own less than 2 products from the workplace. A similar trend appears in Mexico, where employers offer approximately 2 products, while employees generally own less than 1 product from the workplace.

Source: World Health Organization.

COUNTry-SpECIfIC DIffErENCES IN hEAlThCArE ExpENSES, GOVErNMENT VErSUS prIVATE

General government expenditure on health as % of total expenditure on health

Private expenditure on health as % of total expenditure on health

U.S.

U.K.

AUSTRALIA

MEXICO

INDIA 17.3%82.7%

46.4%53.6%

67.5%32.5%

86.3%13.7%

44.7%55.3%

U.S.

U.K.

AUSTRALIA

MEXICO

INDIA17.3%

46.4%53.6%

67.5%32.5%

13.7%

44.7%55.3%

Employers have an opportunity to find better ways of attracting and retaining good workers in a tight labor market. In the highly developed markets of the U.K. and Australia, “retaining employees” is named most frequently by employers as a benefits objective. While there is limited evidence that employees in these countries link benefits closely with job satisfaction, in the U.S. a strong correlation exists. Among U.S. employees who were “highly satisfied” with their benefits, 80% of them indicated strong job satisfaction. As the workforce ages, the correlation—and the opportunity—may grow.

The most forwardthinking employers are already looking at benefits beyond basic health and retirement needs. They are differentiating themselves from competitors by offering benefits that help employees manage the increasingly difficult work/life balance. In the U.S., where employee retention is a top benefits objective of employers, offering benefits to help work/life balance is a popular strategy. Similar approaches are gaining favor in the U.K., where roughly half of employers say helping employees to better balance work and personal lives is an “extremely” or “very” important benefits strategy.

In some regards, countries such as India and Mexico, without large governmentfunded social welfare programs, may actually be in a better position to embrace new models of workplace benefits. These countries are unburdened by the social and political legacies created by programs (such as Social Security in the U.S.) that are financially stressed, yet politically resistant to change because so many individuals’ futures are vested in them. In this respect, newly industrialized countries have the advantage of learning from these “case studies” as they develop their own benefits models.


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Conclusion

Benefits Strategies for Tomorrow, Today

The MetLife Study of International Employee Benefits Trends reveals a set of common challenges facing employers in the countries surveyed. These include:

• Recruiting and retaining the best employees Even when there is an abundance of labor, the need for employers to find and keep the best workers is constant. When there is a tight labor supply, this can be a major strategic challenge.

• Increasing productivity of employees Productivity is a primary concern of employers in the countries surveyed. Many employers consider increasing employee productivity to be a primary benefits objective.

• Managing the costs of benefits Most employers appreciate the role of benefits in recruiting, retaining and managing employees, but the perceived cost of providing benefits is a major obstacle.

• Employees’ need for financial planning Large numbers of employees have given precious little time to planning for retirement or other fundamental needs.

• Employees’ need for financial protection Similar to the widespread lack of retirement planning, an alarming number of employees are not protected against an unexpected loss of income.

• The diminishing role of the state in health and social welfare programs In India and Mexico, where there are less developed social support networks, this is a primary concern. But even in more developed countries, such as Australia and the U.K., the problem of aging workers is putting stress on social programs. In both types of countries, pressure may increase on employers to help fill the gap with benefits programs.

Solutions to these challenges may be found by leveraging a more global perspective and applying it to each country’s unique set of circumstances. For example, we know that economic growth creates predictable patterns of cultural development. While benefits practices do not follow these patterns as predictably, employers can anticipate workforce needs by understanding trends in other countries.


The following insights can help employers in various markets use benefits to create a competitive advantage:

Macro Perspective

• Analyzing how benefits structures interact with social and economic systems in other countries can reveal effective best practices.

• Successful benefits plans need to be created with a full understanding of the cultural, historical and economic dynamics that influence local labor markets.

• Benefits decisions must be made with a longterm outlook: Forecasts of company growth, demographic trends and economic performance should all be taken into account.

Benefits Plan Design

• Benefits plans are most effective in meeting company objectives when offerings are customized. For multinationals, this might mean empowering local personnel to select some benefits that best meet the needs of local workers. For domestic employers, this might mean personalizing benefits offerings to accommodate the needs of diverse national workforces.

• Voluntary benefits (extra insurance or other products and services which employees can choose to obtain where they work, but for which they pay 100% of the cost) could be a costeffective means of enhancing the attractiveness of a company’s overall benefits offering, while providing employees with essential services that might otherwise be unaffordable.

Communication & Education

• In both developed and developing countries, a commitment to employee education forms the foundation for effective benefits plans and may pay for itself over time as employees gain a better understanding of the value of these plans.

• Likewise, the full value of any employee benefits plan may only be realized if the value of benefits products is communicated to employees clearly and consistently.

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SECTION IIIndia

• 3rd largest global economy3

• GDP over $4.2 trillion4

• annual national income per capita: $8205

• rapidly growing economy, but poverty is pervasive6

• Heavily agricultural (18% of GDP), but rapidly industrializing7

• Working age population (ages 15-64) expected to jump from 704 million in 2005 to 1.0 billion in 20308

• Median age: 23.8 years9

• Life expectancy at birth: 63.5 years10

Market profile

Benefits at a glance

• retirement benefits are dominated by a government-mandated employer benefit called the Gratuity, by which every employee, upon leaving his or her employer after more than five years of service, collects 15 days of salary for each year of service.11

• Workers may also save for retirement with a tax-favored vehicle called a Public Provident Fund, to which some employers also contribute.12

• The life insurance market is dominated by the government-owned Life Insurance Corporation of India (LIC), but private insurers are entering the Indian market.13

• a new regulatory body, the Pension Fund regulatory and Development authority, is expected to pave the way for more modern financial products.14

India’s New Economy Creates New Financial NeedsA historic labor surplus means Indian companies may not have to worry about competing for employees, but the changing needs of workers and employers in a surging economy point to a growing role for employee benefits.

As India’s economic boom transforms the country’s longstanding social and cultural traditions, it is also changing the financial expectations of Indian workers. Rapid growth in India’s organized business sector is creating huge demand for skilled labor and driving up wages. While more than 70% of India’s population lives in rural areas,15 the migration of workers to cities to fill new jobs is producing a young class of workers that is better paid and more educated than previous generations. However, the departure of young workers to urban centers is also straining the multigenerational household unit that serves as the financial foundation for many Indian citizens from youth to retirement.

In many cases, new needs for health care, retirement and family support arising from these changes may be met through employer benefits programs, which Indian companies are offering more frequently as they try to retain talented workers while holding down wages and other costs.

Social/Cultural Dynamics: India’s Two Economies

Despite its rapidly expanding economy and pockets of urban prosperity, more than a third (34.7%) of India’s population lives on less than $1 per day.16

The gap between this massive poor population and the growing ranks of relatively wealthy urban workers highlights the fact that India’s economy is as complex and diverse as the nation itself. Indian workers in the socalled “informal” economy often have limited access to benefits systems.18 Workers in the organized economy have more options, but employers that offer benefits rarely offer more than health insurance or term life insurance.

Three-quarters of Indian consumers—versus 56% of their global counterparts—are confident that their personal economic situation will be better in 12 months than it is today. although this share is down from the 85% of Indians who expected their financial lots to improve in 2005, the country’s rapidly expanding economy and the accompanying opportunities it portends, has left Indians far more confident than workers in other countries about their near-term economic prospects.17

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INDIA: OFFERINGS TO EMPLOYEES BY EMPLOYERS

EDUCATION LOANS

MATERNITY ALLOWANCE

COMPANY CAR

PERSONAL LOANS

HOUSING ALLOWANCE

PAID VACATION OR LEAVETRAVEL ALLOWANCE

GRATUITY

PROVIDENT FUND

BONUS 80%

74%

63%

50%

47%

23%

21%

11%

9%

Percentages have been rounded to nearest whole number.

Workplace: A Buyer’s Market for Labor

In the organized economy, the influx of multinational companies into the country has introduced salary inflation to certain industry sectors, and many of these companies have brought with them a model of the benefits practices they employ elsewhere in the world. Nevertheless, Indian employers that offer benefits are less inclined to cite “attracting employees” or “retaining employees” as important benefits objectives—hardly a surprising finding in a country with a huge labor surplus and an expanding population.

Even Indian employers that do offer benefits say they were not motivated to do so by the need to attract and retain employees:

• Indian employers surveyed place controlling costs and increasing employee productivity as their most important objectives, each named by 96% of employers surveyed.

• By contrast, attracting and retaining employees were cited least frequently as important benefits objectives.

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One reason that employers may not have mentioned attracting or retaining employees as a top benefits objective is that India’s employees and employers already profess great loyalty to each other, much more so than in developed countries like the U.S.:

• 79% of Indian employers surveyed who offer benefits say their company has strong loyalty to its employees, compared with 57% of employers in the U.S.

• 83% of Indian employees say they have strong loyalty to their employers, compared to half of U.S. workers.

As for employee attitudes about companysponsored benefits, Indian employees say that—despite their need for retirement products and insurance—such benefits are not a major factor in their employment decisions. Even among workers whose companies provide some form of benefits, relatively few say that benefits are an important reason for joining the company or staying.

India’s employers are the envy of companies around the world when it comes to the availability of workers. In a recent Manpower Inc. survey of companies in 27 countries, India ranked last in the proportion of employers reporting difficulty in filling open positions. Less than 10% of Indian employers have trouble filling open jobs, compared to a global average of 41%. against that backdrop, the hardest positions to fill in India are those for engineers, IT staff, technicians, sales representatives and teachers. This could be attributable to the more specialized nature of these jobs.19

INDIA: MOST IMPORTANT BENEFITS OBJECTIVES CITED BY EMPLOYERS THAT OFFER BENEFITS

RETAINING EMPLOYEES

ATTRACTING EMPLOYEES

REDUCING HUMAN RESOURCESADMINISTRATIVE COSTS

INCREASING EMPLOYEEJOB SATISFACTION

ADDRESSING DIFFERENTNEEDS OF EMPLOYEES

HELPING EMPLOYEES MAKEBETTER FINANCIAL DECISIONS

INCREASING EMPLOYEEPRODUCTIVITY

CONTROLLING HEALTH ANDWELFARE BENEFITS COSTS 96%

96%

90%

89%

88%

88%

87%

84%


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However, any current ambivalence about employer benefits may be more attributable to a lack of employee education about the value of various benefits products than to a lack of need. Demand for retirement planning, insurance and other financial products among Indian workers is strong, and will likely increase significantly as the Indian economy continues to evolve:

• Nearly half (48%) of Indian employees surveyed whose employers do not offer benefits would be interested in purchasing retirement planning products through their employer, even if they had to pay 100% of the cost.

• 51% of Indian employees currently lacking employerprovided benefits say they would be interested in purchasing term life insurance through their employer, even if they had to pay 100% of the cost.

Retirement/Financial Security: Very Concerned, but Unprepared

Although India is a nation of savers, in which workers are accustomed to putting away money for future needs like weddings and education, saving for retirement often is not seen as an immediate priority—perhaps because workers in the past were supported in their elder years by extended families. But with more young workers leaving their families to follow jobs to the cities, about threequarters of Indian workers say they are extremely concerned about having to work fulltime or parttime to live comfortably in their retirement years. When it comes to worries about retirement issues, however, a top financial concern among Indian workers surveyed is having enough money to take care of elderly parents or inlaws, with 79% citing this as a serious concern.

India’s abundant workforce has made job security a pressing concern among employees, particularly in certain cities; 93-96% of employees in Delhi, Chennai, and Kolkata say job security is an “extremely” important concern, compared to only 60% and 64% in Mumbai and Bangalore, respectively.

INDIA: EMPLOYEES’ TOP CONCERNS ABOUT FINANCIAL SECURITY

ENOUGH MONEY SO ONE PARENTCAN STAY HOME WITH CHILDREN

MORE TIME TOSPEND WITH FAMILY

ENOUGH MONEY TO BUY A HOME

BEING ABLE TO AFFORDQUALITY CHILD CARE

RESOURCES AND TIMETO CARE FOR AGING

PARENTS OR RELATIVES

ENOUGH MONEY TO PAY BILLSDURING SUDDEN INCOME LOSS

ENOUGH MONEY FORCHILDREN'S EDUCATION

ENOUGH MONEY TO LIVE ON

JOB SECURITY

APPROPRIATE HEALTH INSURANCE 82%

81%

80%

79%

79%

79%

76%

73%

71%

73%


Despite their concerns about taking care of elders, the vast majority of Indian workers surveyed (80%) have not done any planning for their own retirement, in part due to the relatively young age of the population. Indeed, the concept of retirement is a distant one for many Indians: 33% say they do not plan to retire at all. This is especially true among young workers: 45% of Indian employees age 1830 say they never plan to retire, compared with less than 29% of employees age 3140 and only 16% of workers age 4150. Younger workers seem more concerned about having enough money when they stop working: 76% of Indian employees age 1830 say they are concerned about outliving their retirement money, compared with 60% of workers age 4150. This underscores the need for education and planning for retirement.

Among Indian workers who say they have begun planning for retirement, more than twothirds (67%) say they have benefits through their workplace. That correlation may suggest that, among the most financially prepared workers, employee benefits may already be part of the thinking in the retirement savings process. Indeed, of workers who have not begun planning for retirement, just 43% have benefits through the workplace. Opportunities for providers of financial planning products appear to be growing:

• Among Indian employers that do not currently offer benefits, 35% say it is extremely likely they will begin to offer retirement planning products in the next three years. In addition, more than half of the employers not currently offering benefits say retirement planning is the benefit they are most likely to consider offering first.

INDIA: EMPLOYEES WHO HAVE DONE ANY PLANNING FOR RETIREMENT

NOYES

20%

80%


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Insurance: New Competition, New Options

The need to pay for health insurance—currently owned by only 58% of employees surveyed—is among Indian workers’ top financial concerns:

• 82% of Indian employees say they are extremely concerned about having appropriate health insurance coverage, and 78% are extremely concerned about being able to afford health care in their retirement years.

Life insurance is also seen as a financial priority:

• 93% of Indian employees have taken steps to determine their household’s financial needs with regard to life insurance.

• 81% of employees currently have term life insurance; 23% obtained this coverage from their employer and 58% purchased it from providers outside the workplace.

• 86% of Indian employers that offer benefits offer health insurance; 66% offer term life insurance; and 44% offer disability insurance.

46% of Indian employees say that one or both of their parents or their spouse’s parents are financially dependent upon them. among employees age 31-40, 57% say they are financially supporting parents or in-laws.

INDIA: BENEFITS OFFERED BY EMPLOYERS THAT OFFER BENEFITS

ANNUITIES

ENDOWMENT PRODUCTS

AUTO INSURANCE

CRITICAL ILLNESS INSURANCE

HOME INSURANCE

PENSION

DISABILITY INSURANCE

TERM LIFE INSURANCE

HEALTH INSURANCE 86%

66%

44%

33%

19%

18%

14%

13%

12%


Although health and life insurance are the two primary benefits offered by Indian employers with benefits programs, both employers and employees could soon find new options available in terms of expanded insurance coverage and retirement savings products. In the insurance arena, the ongoing liberalization of the Indian market is producing new competition for the governmentowned LIC—and new alternatives for companies and workers.20

Conclusion


Indian employers regard controlling costs and increasing employee productivity as more important benefits objectives than attracting and retaining talented workers. Despite the country’s labor surplus, benefits are seen by employers in certain servicesector industries—or in areas in which multinational outsourcing business has intensified demand for labor—as a way to satisfy highly skilled workers without driving up wages:

• Whether employers’ primary benefits objectives concern increasing workforce productivity or attracting and retaining employees, those companies offering health and life insurance provide two financial solutions that are in high demand from their workers.

• The need for Indian workers to prepare and provide for their own retirement — and the growing number with the financial resources to do so — suggests that retirement planning products can provide employers with a longterm strategic option for meeting benefits goals.

• In order to fully unlock the value of benefits in the workplace, employers can work with providers of financial products to educate employees on how benefits can improve their financial security and qualityoflife.

• Offering voluntary benefits (extra insurance or other products and services which employees can choose to obtain where they work, but for which they pay 100% of the cost) is a way to increase the value of benefits offerings without increasing costs; this could be an important strategy given that controlling costs is a top objective for Indian employers.

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SECTION IIIMexico

• 12th largest global economy21

• GDP of $1.2 trillion22

• annual national income per capita: $7,87023

• rapidly growing economy; the “informal” economy has a sizable presence

• Mix of modern and outmoded industries; GDP: 70% services, 26% industry, 4% agriculture 24

• Working age population (ages 15-64) is expected to jump from 66.1 million in 2005 to 86.4 million in 203025



Market profile


• a mandatory retirement savings system is paid for by employers, at 2% of wages, and managed in individual investment accounts by registered organizations known as aFOres.28

• To help restore its public employee pension system to solvency, Congress voted to raise, by 2028, the retirement age for civil servants to an average of 59 years from 49.5 years and workers’ pension contributions to 6.125% from 3.5% by 2012—echoing reforms of private-sector pensions approved a decade ago.29

• Mexico has a decentralized national health system, but employees who can afford private care tend to use it and buy insurance for it.30

Mexico: A Culture and Workplace Challenged by Growth As in many developing countries, Mexico’s relatively young working population is still very much in the learning process when it comes to retirement, insurance and other benefits.

Mexico’s demographics are a study in contrasts. The Mexican workforce is expanding rapidly, a development that has contributed to strong economic growth. Mexico has the highest per capita income among Latin American countries.32 Nevertheless, more than 45% of all Mexicans were still living in poverty as recently as 2005.33 Mexican employees overall voice a high degree of concern about financial issues, with 85% of married employees saying they are “extremely concerned” about financial security in the event of a spouse’s premature death.

When it comes to employerprovided benefits, many employees who receive any benefits at all get only what their employers are required by law to provide.

Due in large part to gaps in national health and retirement programs and the scarcity of privatesector coverage, many Mexican workers say they have taken no steps to protect their financial future. Mexico’s employers are in a position to help address this challenge, and market forces might soon make doing so essential to their own businesses. A full 82% of Mexican employers say they are having difficulty finding suitable talent to fill jobs—despite the current abundance of general labor.34 That shortage will only intensify as Mexico’s economy develops and new demographic trends that are already starting to emerge begin to slow the growth of the country’s workforce. In this fastchanging economic and social landscape, Mexican companies will increasingly discover the value of benefits as a tool for attracting and retaining the best employees.

Culture: Ingrained Traditions Collide with New Realities

Although a deeply ingrained culture keeps traditional elements such as church, government and community at the center of Mexican society, the extended family— the country’s most important social and economic unit—is feeling the stress of the new economy. Whereas past generations of one family often would work a lifetime for the same employer in the same region, family members today frequently work far from home, in Mexican cities or abroad. This new mobility has produced obvious benefits, such as the remittance payments from workers in distant regions that help support the Mexican economy.

although the Mexican population remains young relative to that of developed countries in North america and europe, demographic trends will soon begin to age the country’s workforce. average life expectancy in Mexico jumped to 76 in 2005 from just 65 in 1975,31 and birthrates are on the decline, in part due to the fact that more women are working outside the home. These changes could eventually produce the same type of stress on Mexico’s national retirement and health care programs currently being experienced in the U.s., europe and Japan.

24 Sectioniii:Mexico

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But changes to traditional society can also cause concern:

• Mexican employees remain wary of many social/economic changes—83% believe more mothers of young children will be working fulltime outside the home over the next five years, but 72% of those see it as a “bad thing.”35

• As employers’ relationship with workers has become less paternalistic, employees’ anxiety about job security could increase. In fact, job security is the numberone financial concern of employees in Mexico, named by 79% as the top worry.

Workplace: Benefits Slowly Gain Traction

Despite the rapid changes occurring in their economy, Mexican employees are committed to their employers: 81% of all employees surveyed agree completely that they are satisfied with their jobs, and 75% feel a strong sense of loyalty to their employers. These results might reflect the fact that Mexico remains a buyer’s market when it comes to labor.

However, the survey data demonstrate that benefits plans can have a significant impact on employee loyalty. Nearly 70% of Mexican employers that offer benefits say their employees have a strong sense of loyalty to their companies, compared with only 46% of employers not offering benefits. Among employees who said they have a very strong sense of loyalty to their employers, 55% received benefits, while 45% did not.

employee benefits may be positive psychologically as well as financially. Of Mexican employees who said they feel strongly in control of their finances, 77% were employees who receive benefits through their workplace. Only 60% of employees without benefits said they feel strongly in control of their finances.

MEXICO: EMPLOYEES’ TOP CONCERNS ABOUT FINANCIAL SECURITY

BEING ABLE TO AFFORDQUALITY CHILD CARE

RESOURCES AND TIMETO CARE FOR AGING

PARENTS OR RELATIVES




ENOUGH MONEY TO LIVE ON

ENOUGH MONEY FORCHILDREN’S EDUCATION

APPROPRIATE HEALTH INSURANCE


JOB SECURITY 79%

77%

75%

74%

72%

71%

69%

65%

52%

61%


Benefits also play a role in workers’ decisions about whether to take a job or to remain with their current employer. Benefits are cited by 73% of employees as an important reason they stay with their company—one of the top attitudes toward benefits.

Nevertheless, employers view benefits plans more as a tool for increasing employee productivity and job satisfaction than for attracting and retaining workers. 99% of Mexican companies that offer benefits name increasing employee productivity as a primary benefits objective while 91% cite increasing employee job satisfaction. Only 70% cite retaining employees as an important benefits objective.

Among Mexican employers offering benefits, the most popular benefits products offered are mandated savings fund donations, which are provided by 63% of employers with benefits plans, followed by insurance products.

About three quarters of Mexican workers surveyed agree completely that they want a wider array of benefits. Relatively few Mexican employees own financial products. When asked what benefits they value most, Mexican employees cite “social security” and “vacation with pay”; 58% also say they are definitely interested in companyoffered health insurance, and 51% in an employersponsored savings fund.

MEXICO: MOST IMPORTANT BENEFITS OBJECTIVES CITED BY EMPLOYERS THAT OFFER BENEFITS


RETAINING EMPLOYEES

HELPING EMPLOYEES MAKEBETTER BENEFITS DECISIONS

ADDRESSING DIVERSENEEDS OF EMPLOYEES



CONTROLLING HEALTH ANDWELFARE BENEFITS COSTS



99%

91%

85%

83%

83%

79%

75%

70%

70%


Good health takes precedence over all other considerations when it comes to defining a satisfying lifestyle in Mexico; 83% of Mexican workers name good health as part of a satisfying lifestyle, far ahead of financial security (63%) and owning a home (60%).36

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Retirement/Financial Security: New and Evolving Concepts

With the new wealth created by the country’s economic progress, Mexican workers are embracing a more consumerist lifestyle.

While 51% of Mexican employees surveyed say they plan to retire between the ages of 51 and 60, 81% have not done any retirement planning. In many ways, this situation resembles that in another fastgrowing nation, India, in which the proportion of employees that say they have started planning for retirement is similar to Mexico’s, at 20%.

While 12% of the Mexican employees who said they have begun planning for retirement say they “have achieved” or are “on track” with their retirement savings, 81% have not begun planning—evidence of the degree to which the concept of retirement planning is new or not yet important to many workers, perhaps because the population is relatively young.

Of Mexican companies that have established employee benefits plans, 38% provide added benefits to executives, with the top three being health, term life and disability insurance.

MEXICO: EMPLOYEE ATTITUDES TOWARD BENEFITS IN THE WORKPLACE (PERCENTAGE WHO “AGREE COMPLETELY”)

BENEFITS IMPORTANTREASON I CAME

SATISFIED WITH MY BENEFITS

WORRIED ABOUT ABILITY TOAFFORD BENEFITS PACKAGE

THAT’S RIGHT FOR ME/MY FAMILY

INTEREST IN EMPLOYERPROVIDING BENEFITS ADVISORS

INTEREST IN EMPLOYERPROVIDING FINANCIAL

PLANNERS (ALL NEEDS)

COMMUNICATIONS ARE EFFECTIVE

EASIER TO MAKE CHOICES IF IRECEIVED PERSONALIZED

BENEFITS PACKAGE

BENEFITS IMPORTANTREASON I STAY

UNDERSTAND WHICHBENEFITS BEST FIT NEEDS

WANT WIDER ARRAY OFVOLUNTARY BENEFITS 76%

74%

73%

73%

72%

72%

71%

71%

66%

70%


The relatively low rate of ownership in a variety of financial products also illustrates the fact that many Mexican employees—especially young workers—are new to the notion of financial planning or do not view it as a top priority. Only 38% of Mexican employees surveyed have a savings fund, 34% own health insurance and 28% or less own other insurance or retirement products. Only 13% own a mutual fund.

Among the employees who own some of these products, most obtained them, at least in part, through the workplace, and most of the products were funded by their employers. This fact suggests that some Mexican employers are beginning to recognize both the value of certain benefits products and the need to support the workforce for the long term. As employers begin to adopt this type of strategic outlook, some are finding opportunities in products that address workers’ growing qualityoflife concerns: Asked about the importance of benefits strategies, 83% of employers cite “benefits to help work/life balance” as “important”, followed by “retirement planning” at 77%.

MEXICO: EMPLOYEES WHO HAVE DONE ANY PLANNING FOR RETIREMENT

NOYES

19%

81%

Percentages have been rounded to nearest whole numberPercentages have been rounded to nearest whole number.

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Insurance: A Developing Market, An Opportunity for Employers

Insurance is an underdeveloped industry in Mexico:

• Only 38% of employees surveyed have taken any steps to determine the life insurance needs of their household, only 20% their disability needs and just 11% their longterm care needs.

However, there are clear signs of opportunity for insurance providers and for employers looking for effective products with which to expand their benefits plans:

• 44% of employees who do not own life insurance through the workplace say they would be interested in purchasing it.

• 58% of Mexican employees surveyed name health insurance as the product they are most interested in purchasing through their employers—the highest share for any product.

asked about their top financial concerns and work/life goals, Mexican employees cite job security (79%), money to cover bills during a sudden income loss (77%) and health insurance (75%) as their top concerns.

MEXICO: TOP BENEFITS STRATEGIES OF EMPLOYERS THAT OFFER BENEFITS

OUTSOURCING BENEFITSADMINISTRATION

INTERNET ACCESSFOR ALL EMPLOYEES

BUILD OR EXPANDBENEFITS WEBSITE

EMPLOYEE SELF-SERVICEON INTERNET/INTRANET

COMMON PLATFORMFOR ADMINISTRATION

COST SHIFTING TO EMPLOYEES

GENERAL FINANCIAL PLANNING

WIDER ARRAY OFVOLUNTARY BENEFITS

PENSION/RETIREMENT PLANINVESTMENT EDUCATION

RETIREMENT PLANNING

BENEFITS TO HELPWORK/LIFE BALANCE

83%

77%

73%

64%

62%

59%

58%

52%

50%

45%

41%


Conclusion


Mexico has long opened its borders to multinational investment, and is one of the leading nations in facilitating trade agreements worldwide. But these developments, while boosting domestic economic growth at an enviable rate, can reshape the workplace environment. Mexican employees increasingly exposed to multinational influences will doubtless be drawn into the very human game of drawing comparisons. And in such an increasingly competitive landscape, Mexican employers looking to maintain topquality workforces will increasingly feel compelled to reassess their own benefits practices:

• Employers that are trying to recruit and retain highly skilled workers may need to offer a greater range of benefits, potentially including health insurance and an employersponsored savings fund, than is standard practice in order to compete with multinationals seeking the same talent.

• Educating employees on the importance of financial planning, insurance and retirement savings can deliver significant benefits to both companies and workers for a minimal investment on the part of Mexican employers.

• Because a significant proportion of Mexican employees say they would like the opportunity to purchase financial products through the workplace and that sudden income loss is a top concern, voluntary benefits (extra insurance or other products and services which employees can choose to obtain where they work, but for which they pay 100% of the cost) represent a valuable and costeffective tool for employers.

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SECTION IVAustralia


• GDP over $681 billion38


• Developed economy, capitalist system

• Dominated by services sector (70% of GDP40)

• Working age population (ages 15-64) expected to grow from 13.7 million in 2005 to 15.5 million in 203041


• Life expectancy at birth: 80.6 years 43

Market profile


• 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 or benefits if offered, and costs are deducted from their investment account.46

• Government covers all australians, but private health insurance is common.47

Australia: Aging Population Could Impact Retirement DreamsAustralians hope to achieve a good work/life balance today, and an active retirement tomorrow. But an aging population and overconfidence in government benefits programs could threaten that model.

As the baby boomer generation continues to leave the workforce over the next 10 to 20 years, there is growing concern that not everyone has appropriately planned for retirement. In part, this is because superannuation was not made compulsory until 1992. As a result, baby boomers had not focused as much on saving for retirement for most of their working lives. With the advent of compulsory superannuation, voluntary employerprovided benefits for employees previously dominated by employer superannuation took on less significance.

The current compulsory employersponsored program requires employers to contribute 9% of a worker’s salary. It also offers members life insurance protection as well as coverage for disablement and income protection. The super funds have been such a success story that a full 58% of Australians surveyed say that they have not done any other planning for retirement. However, some employees surveyed indicate that the superannuation contribution of 9% plus an automatic level of insurance protection provided within the funds may not be enough to protect their families and ensure their future wellbeing:

• Australians are living longer, and the workforce is growing older. Within the next 40 years, the proportion of Australians over age 65 will increase about 13% to more than 25%49, putting pressure on the country’s health care system.

• Less than half of all Australians have taken steps to determine their retirement or life insurance needs.

• In terms of insurance, the coverage provided through superannuation may not be enough to cover family needs. Of employees surveyed who receive permanent disability insurance through superannuation, 23% feel their amount of coverage is not adequate and another 23% say they do not know if it is adequate.

Australians need financial advice and new ways to augment governmentmandated coverage. Employers and superannuation funds that move quickly to meet this need by expanding their benefits offerings and establishing programs to educate workers about the value of benefits have a unique opportunity to distinguish themselves from their competitors.

“The aging of the population, and the changes it will bring, remains the biggest economic challenge for australia over the medium and long term.”48 Peter Costello, Treasurer of the Commonwealth of australia

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Social/Cultural Dynamics: Aging Workforce Looks Toward Retirement

Life expectancy at birth in Australia is 80.6 years—higher than in any other country in this survey, and higher than in the U.S. (77.7 years).50 However, superannuation funds might fall short in providing Australians with the lifestyle they desire in retirement:

• 41% of Australian employees surveyed hope to retire in their 50s; 45% hope to retire in their 60s.

• 49% are extremely concerned about outliving their retirement savings.

• With its economy growing briskly and baby boomers leaving the workforce, the government has launched a campaign to encourage workers to continue working past their respected retirement age in an effort to stem a burgeoning labor shortage. The response has been largely positive, with 58% of employees reporting that they would consider working past their expected retirement age, and 80% saying they want a phasedin retirement, according to a recent survey by the University of Tasmania.51

as in Mexico, India and the U.K., good health is the top consideration for australian employees, 87% of whom cite it as part of a satisfying lifestyle, followed by a happy marriage (67%) and financial security (65%).52


AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT FINANCIAL SECURITY

APPROPRIATE HEALTH INSURANCE


ENOUGH MONEY FORCHILDREN’S EDUCATION



JOB SECURITY


ENOUGH MONEY TO LIVE ON 61%

60%

58%

55%

53%

44%

42%

40%

AUSTRALIA: BENEFITS CURRENTLY OFFERED BY ALL EMPLOYERS

RETIREMENT SAVINGS ACCOUNT

TRAVEL ACCIDENT

MEDICAL (HEALTH)

FINANCIAL PLANNING SERVICES

TOTAL PERMANENT DISABILITY

INCOME PROTECTION

TERM LIFE (FOR EMPLOYEE) 39%

31%

30%

30%

24%

22%

21%


Workplace: Benefits Education Begins

Australian employers are feeling pressure to attract and retain talented workers:

• Only 23% of employers surveyed expect to be affected by a workforce shortage, but 53% expect the competition for talent to increase over the next 18 months.

• 61% of Australian employers surveyed experienced difficulty in 2007 finding the right people to fill jobs, up from 32% in 2006 and significantly above the global average of 41%.53

Nevertheless, employers in Australia are only beginning to consider employee benefits as a tool with which to address this challenge. Changes in superannuation, such as choice of fund legislation, that give employees much greater latitude to choose between funds, may heighten employers’ awareness that differences in benefits attached to individual super funds make a difference to employees. Throughout the country, super funds are starting to distinguish themselves, not just by their performance and investment platform, but also through valueadded insurance products and programs around education and advice. There appears to be ample opportunity for super funds to differentiate themselves from their peers: Only 29% of employees are very satisfied with their current fund provider.

Companies have started taking advantage of this competition among super funds by shopping for the ones that provide the most value to their employees. To date, however, few employers have taken the next step by offering employees other voluntary benefits outside of the superannuation program. The most common product offered is term life insurance, offered by 39% of employers.

australians tend to shun personal debt—78% said they do not like to be in debt at any time, versus 72% of global respondents to a recent survey ,54 and favor buying items on sale (61% versus 53% globally). However, while they may not like debt australians are in debt: Only 30% report having no debt beyond mortgage or auto loans.

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australians might have a false sense of security when it comes to the insurance coverage they receive through their super funds. Only 38% of australians say they own term life insurance for themselves in addition to any insurance they may receive through superannuation.

Employee responses seem to support employer attitudes: Only 15% of employees say benefits are an important reason to stay with a company, and only 9% say benefits are the reason they joined.

Australian employers looking to increase the effectiveness of benefits plans in meeting business objectives would do well to focus on benefits that assist employees in managing work/life balance. Flexible work hours are viewed as the most important benefit by 87% of employees, followed only at a considerable distance by excess superannuation contributions (78%) and training (77%). More than 80% of employers surveyed now offer a form of flexible working hours.

AUSTRALIA: MOST IMPORTANT BENEFITS OBJECTIVES OF ALL EMPLOYERS




HELPING EMPLOYEES MAKEBETTER BENEFITS DECISIONS

ADDRESSING DIVERSENEEDS OF EMPLOYEES



RETAINING EMPLOYEES 89%

87%

82%

71%

68%

66%

65%

64%


One reason employers may not focus on benefits is that although 89% of them name retaining employees as an extremely important benefits objective, as a whole they do not believe that benefits are an important reason why employees join or stay with a company:

• Only 35% of Australian employers surveyed name benefits as an important reason employees come to work at their companies.

• Only 37% name benefits as an important reason employees stay at a company.

Despite these concerns, only 43% of Australian employees have taken steps to understand their retirement income needs and just 42% have planned for retirement in addition to superannuation. Of those who have planned for retirement, only 40% feel they are currently on track to meet their goals, although 60% say they expect to be on schedule five years from now.

Half of australian employees consider themselves beginner investors, but only 38% currently consult with a financial professional, and only 31% had interest in company-provided financial planners.

AUSTRALIA: BENEFITS CITED AS ONE OF TOP FIVE “MOST IMPORTANT” BY EMPLOYEES

SHARE PURCHASE PLAN

SUBSIDIZED LOANS

TRAINING

EXCESS SUPERANNUATIONCONTRIBUTIONS

FLEXIBLE WORKING HOURS 87%

78%

77%

54%

46%


AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT RETIREMENT

HAVING ENOUGH MONEYTO TAKE CARE OF ELDERLY

PARENTS OR IN-LAWS

PROVIDING FOR YOUR OWNLONG-TERM CARE NEEDS

PROVIDING FOR YOURSPOUSE/PARTNER’S

LONG-TERM CARE NEEDS

HAVING TO WORK FULL-TIME ORPART-TIME TO LIVE COMFORTABLY

IN RETIREMENT YEARS

BEING ABLE TO AFFORD HEALTHCARE IN RETIREMENT YEARS

OUTLIVING RETIREMENT MONEY 49%

44%

43%

39%

38%

29%


Retirement/Financial Security: Ambitious Plans, Little Planning

Given their ambitious plans for retirement and their long life expectancy, most Australians are worried about having enough money to afford it. Nearly half of Australian employees surveyed (49%) are extremely concerned that they will outlive their retirement savings.

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In 2007 there are five australians of working age to support every person age 65 and over. By 2047, there will only be 2.4 people of working age supporting each person age 65 and over.56

Only 38% of Australian employees surveyed have purchased term life insurance for themselves outside the workplace, and only 23% have purchased it for a spouse or dependents. 58% purchase additional insurance for income protection or disability through their super fund, and more than half say they have adequate disability insurance coverage.

Expanding the role of private insurance outside the superannuation structure will require a strong push in employee education. Of employees who have purchased additional outside insurance coverage, only 24% express a definite interest in purchasing income protection insurance, and just 22% are interested in total permanent disability insurance. These findings may suggest low awareness of the value these types of benefits can bring.

AUSTRALIA: EMPLOYEES WHO HAVE TAKEN STEPS TO DETERMINE THEIR HOUSEHOLDS’ NEEDS FOR LIFE INSURANCE, INCOME PROTECTION AND RETIREMENT

42% 35% 43%57%65%58%

LIFE INSURANCE INCOME PROTECTION RETIREMENT No

Yes


Few Australians have purchased products to guarantee income during retirement—just 7% have purchased annuities—and many Australians see themselves working to some extent in their retirement years.55 43% of Australian employees are extremely concerned that they will have to work full or parttime to live comfortably. Employers may have an opportunity to help. Currently, just 18% offer annuities as an employee benefit.

Insurance: Uninformed Workers are Underinsured Workers

Insurance, offered by many fund providers as part of their super fund package, is another component of financial health that is advancing the benefits conversation in Australia. Superannuation funds often include three basic insurance coverages for employees (life, disability and income protection). The required coverage is low— less than most people would need in the case of income loss or death.

Employees may have a false assumption that coverage is adequate. Although more than half of Australian employees surveyed say they are extremely concerned with premature death, disability or serious illness, only 42% have taken steps to determine their life insurance needs and 35% their income protection needs.

Conclusion


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 employerprovided benefits. As employees become aware that economic and demographic realities could threaten their visions of financial security and retirement lifestyle, they will increasingly 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:

• Australian employees may be underinsured—but many do not realize it. In creating benefits plans, employers should first focus on educating employees about financial risks and appropriate coverage.

• For companies looking to differentiate themselves from other employers on the basis of benefits, 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.

• Australia has a diverse and increasingly multinational workforce (one in five Australians was born in another country). 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.

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SECTION VUnited Kingdom


• GDP over $2.1 trillion58


• Highly developed, wealthy nation

• economy dominated by services sector (73% of GDP60)

• Working age population expected to increase from 39.7 million in 2005 to 40.7 million in 203061



Market profile


• The National Health service provides publicly funded health care. However, private health insurance is common.64

• The government provides the Basic state Pension, and provides tax incentives for workers to fund their own personal pensions.65

• The insurance and financial products markets are highly developed and competitive.66

United Kingdom: Employee Benefits Fill Gaps in Social ProgramsU.K. employees have long used company pensions and insurance to supplement government benefits, but as national programs feel the strain of changing demographics, employee benefits could take on a new level of importance.

The convergence of powerful demographic and economic trends is highlighting the need for employee benefits plans in the U.K. At present, benefits have little impact on the employment decisions of U.K. workers, in large part because workers receive free health care through the National Health Service and guaranteed retirement income through the Basic State Pension. Because of these state programs, employees have had little reason to demand robust benefits plans—and their employers have had little incentive to offer them. However, a series of developments is causing U.K. workers to reassess their financial needs and job priorities:

• With life expectancy on the rise and the U.K. workforce aging, the Basic State Pension may not be enough to cover the full costs of retirement, and workers in some cases will need to supplement it with additional retirement savings.

• Likewise, some 45% of U.K. employees surveyed are augmenting their National Health Service coverage with private insurance—a practice that seems especially prevalent in the executive ranks.

At the same time, employers are facing new challenges that could increase the attractiveness of employee benefits plans. Steady economic growth and the prospects of a shrinking workforce are increasing the possibility of future labor shortages. With the competition for skilled workers already heating up in certain sectors, U.K. employers and employees alike might soon be reconsidering the value of benefits.

While a third of women in the U.K. worry that they will have to work full- or part-time to live comfortably in retirement, only about a quarter of men in the U.K. express the same concern. Women may have more cause for concern, because according to the World Bank, average life expectancy for women in the U.K. was 81 years as of 2004, compared with 76 years for men.67

40 Sectionv:unitedKinGdoM

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Having enough money to live comfortably and pay the bills ranks as the third biggest concern of U.K. consumers (36%), behind crime and lawlessness (59%)—the top concern—and terrorism (38%).68

U.K.: MOST IMPORTANT BENEFITS OBJECTIVES OF EMPLOYERS THAT OFFER BENEFITS

CONTROLLING HEALTH ANDWELFARE BENEFITS COSTS




RETAINING EMPLOYEES 83%

78%

75%

71%

54%


Social/Cultural Dynamics: A Strained System of Social Welfare

U.K. employees receive fundamental health and retirement coverage through government programs and have access to a wellestablished financial services industry that offers consumers a broad set of choices in private health care, insurance and investment products. In part due to the availability of these resources, workers in the U.K. express far less concern than U.S. employees about financial issues ranging from having enough money to live on (44% of U.K. employees, compared with 59% in the U.S.), to being able to afford appropriate health insurance for oneself and one’s family (28% in the U.K., 57% in the U.S.).

However, demographic realities mean that current U.K. employees may remain in the workforce longer than have past generations, and that workers—especially younger workers—will shoulder a larger share of the burden in planning for their own retirements. 40% of U.K. workers age 2130 say they are worried about outliving their retirement money, as opposed to 34% of U.K. workers overall.

U.K. employees are recognizing the need to supplement governmentprovided retirement and health programs. Workers who purchase at least three financial products through the workplace cite pension plans as their most important employee benefit, ahead of paid vacation and holidays and sick leave.

Workplace: Meeting the Minimum with Employee Benefits

Most U.K. employers offer some benefits, which companies see primarily as a means of retaining and attracting employees.

While a majority of U.K. companies offer their employees pensions, private medical insurance and life assurance, few employers have sought to differentiate themselves by expanding benefits beyond this minimum. Perhaps as a result, only 14% of U.K. employees say that benefits were an important reason for taking their current jobs, and just 23% cite benefits as an important reason for staying.

For past generations of U.K. workers, traditional employer-provided pensions have represented an important source of retirement income. However, the availability of pensions may be declining. according to U.s. consultancy Greenwich associates, the share of U.K. corporate defined benefit pension plans closed to new employees has increased from 47% in 2004 to 55% in 2005 and 60% in 2006.69

One possible reason why U.K. companies have not rushed to expand their benefits offerings is that despite predictions that the U.K. workforce will shrink over the next 25 years, employers do not seem overly concerned about the impact of demographic trends on their businesses:

• Only 10% of U.K. employers surveyed expect the aging population to have a significant impact on their businesses, compared with 36% in the U.S. 27% in the U.K. expect no impact at all, compared with 7% in the U.S.

Despite their skepticism on the aging issue, U.K. employers have begun taking steps to address the needs of older workers in their benefits plans:

• 45% offer programs and resources geared toward aging workers, compared with only 18% in the U.S. Of U.K. employers offering these benefits, 88% offer flexible working arrangements and 62% offer time off for caregiving responsibilities.

The addition of products targeting aging workers suggests that some U.K. employers have already begun experimenting with benefits beyond pension and insurance staples as a means of attracting and retaining talented employees. They may need to — only 44% of U.K. employees say they are completely satisfied with their employerprovided benefits.

U.K.: BENEFITS OFFERED BY EMPLOYERS THAT OFFER BENEFITS

AUTO INSURANCE

TRAVEL INSURANCE

CRITICAL ILLNESS INSURANCE

LONG-TERM DISABILITY ORPERMANENT HEALTH

LIFE ASSURANCE

PRIVATE MEDICALINSURANCE (PMI)

PENSION 94%

82%

66%

43%

31%

30%

27%



4�

Employee work/life balance is one area that seems particularly ripe for employers looking to increase the impact of their benefits plans. Work/life balance has become an important issue for U.K. employees as their employers demand longer work hours and the rising cost of real estate forces them to endure longer commutes:

• More than 40% of U.K. employees surveyed indicate that when it comes to financial issues, they are extremely concerned with having more time to spend with their families, behind only job security and having enough money to live on.

• Asked to assess the importance of nine different employee benefits strategies, more than half of U.K. employers that offer benefits (51%) indicate that “benefits to help work/life balance” are “extremely” or “very” important—the highest share for any strategy.

Retirement/Financial Security: U.K. Employees Take a Proactive Approach

In contrast to Americans, the majority of U.K. employees say they have started planning for retirement and feel well prepared financially. Nearly 55% of U.K. employees consider themselves on track for reaching their retirement savings goals, as opposed to only 21% in the U.S.

More than 70% of U.K. employees surveyed have taken steps to determine their needs for retirement income, compared with only 52% of U.S. workers. However, 34% say they are very concerned about outliving their retirement savings.

although men outnumber women in the U.K. workforce, employers might consider tailoring their benefits plans and education programs for both men and women: 44% of U.K. women describe themselves as the sole decision-maker for their household when it comes to employee benefits, versus only 38% of men.

U.K.: NUMBER OF YEARS THAT FULL-TIME EMPLOYEES PLAN TO SPEND IN RETIREMENT

31+ YEARS

21-30 YEARS

11-20 YEARS

6-10 YEARS

1-5 YEARS 12%

14%

42%

25%

7%

Median Number of Years: 19.6Mean Number of Years: 20.2


Insurance: A Shortfall in Coverage

Although all U.K. workers are covered by governmentsponsored health insurance, employees nevertheless place a high value on private medical insurance (PMI):

• 55% of U.K. employees surveyed named PMI as one of the five benefits most important to them.

• 45% of employees surveyed currently own PMI; 82% of employers currently offer it.

In particular, PMI is a key ingredient in executive benefits plans. Of the 41% of U.K. employers who say they offer special executive benefits, 47% of them offer PMI to highly compensated executives only.

While most employers offer PMI to workers or executives, U.K. companies are much less likely to offer life assurance—a situation that could represent an opportunity for employers looking to expand their benefits plans, since life assurance is considered a necessity among many U.K. workers. 83% of U.K. employees surveyed have life assurance, but only 18% obtained it exclusively through the workplace.

When it comes to attitudes toward employers, smaller may be better, at least in the opinions of U.K. employees. 56% of employees at companies with 10-99 employees say they feel a strong sense of loyalty to their employer, while only 41% of those at companies with more than 1,000 workers agree. Likewise, 45% of employees at the smaller companies feel their employer is strongly loyal to them, compared with just 25% at the larger companies.



U.K.: WHERE EMPLOYEES OBTAINED DIFFERENT FINANCIAL PRODUCTS

PRIVATE MEDICALINSURANCE (PMI)

PERSONAL ACCIDENT COVERAGE

LIFE ASSURANCE

CRITICAL ILLNESS

PENSION

BothOutside WorkplaceWorkplace

18%51%

13%

48%22%

10%34%

12%

1%

11%32%

3%

28%14%

1%

4�

Employers looking for effective benefits options might also consider other types of insurance products. For a group that has been relatively proactive in assessing and planning for their financial needs, U.K. employees surveyed seem less than fully prepared in many other healthrelated areas:

• 45% have critical illness insurance. • 35% have longterm disability, or permanent health insurance.• 26% have dental insurance.• 11% have longterm care insurance.

Among those that do own these products, most purchased them outside the workplace, indicating that they see value in them. Employers that can work with their insurance providers to communicate the value of these products as workplace benefits might gain an advantage in recruiting and retaining employees.

That opportunity is hardly limited to specific insurance products. In general, many U.K. employees do not seem to understand that benefits received through the workplace may deliver better rates and convenience:

• 42% of U.K. employers cite “better rates” as an advantage of voluntary benefits, compared to only 28% of employees.

• 40% of employers cite “convenience,” compared to only 28% of employees.

U.K. employees express more confidence than their U.s. counterparts in their perceived investing acumen. While 38% of U.s. workers describe themselves as “beginner investors,” only 19% of U.K. workers see themselves that way.

U.K.: EMPLOYER AND EMPLOYEE ATTITUDES TOWARD VOLUNTARY BENEFITS (PERCENTAGE THAT “STRONGLY AGREE” THAT THESE ARE ADVANTAGES)

EmployeesEmployers

PAYROLL DEDUCTIONHELPS EMPLOYEES BE MORE

DISCIPLINED ABOUT SAVINGS

RECEIVE OBJECTIVEINFORMATION FROM EMPLOYER

MORE CONVENIENT THANBUYING PRODUCTS ON OWN

BETTER RATES

PAYROLL DEDUCTION,CONVENIENT WAY FOR

EMPLOYEE TO MAKE PAYMENTS

52%48%

42%28%

40%28%

35%33%

33%39%


Conclusion


U.K. companies recognize the potential value of benefits programs in attracting and retaining workers—a task that looks to become increasingly challenging due to demographic changes occurring in the workforce:

• In moving from current benefits practices—which often entails offering the bare minimum of a pension and private medical and health insurance—to a more strategic approach that would differentiate them from other employers, U.K. companies might look to the U.S. for ideas. In the U.S., where the lack of national health care and doubts about the solvency of Social Security have made a competitive benefits plan a strategic imperative, employers are developing flexible, holistic and personalized approaches that meet the needs of a diverse workforce.

• U.K. employers looking for highvalue offerings to enhance benefits plans should consider financial education programs. These can assist their employees in making the many important decisions facing workers forced to shoulder more responsibility for their own financial security.

• Because of longer work hours and commutes, employers can increase the impact of their benefits plans by offering programs that provide employees with a better work/life balance.

• When expanding benefits plans, start with insurance. While U.K. workers may be ahead in their ownership and understanding of financial products, many lack adequate coverage in longterm disability, dental and longterm care insurance.

4� Sectionv:unitedKinGdoM

4�

The MetLife study of International employee Benefits Trends was conducted between November 2006 and March 2007 by GfK Custom research, one of the top global market research consultants. results were obtained through face to face, telephone and online interviews. The targeted sample for each country was designed to appropriately represent the full-time employee population base. On the following pages totals do not always equal 100%, due to rounding.

Methodology SECTION VI

Mexico

INDUSTry

Professional services 42%

Heavy Industry 25%

Process Industry 14%

Technology/science 8%

sales/Trade 5%

Other 6%

COMpANy SIZE

100-199 employees 57%

200-499 20%

500-999 10%

1,000+ 13%

GEOGrAphy

Mumbai 25%

Delhi 29%

Kolkata 26%

Chennai 11%

Bangalore 10%

GENDEr

Male 90%

Female 10%

AGE

30 or under 46%

31 to 40 38%

41 to 50 13%

51+ 3%

ChIlDrEN

yes 49%

No 51%

MArITAl STATUS

Married 67%

single, never 33% married

ANNUAl hOUSEhOlD INCOME (IN rUpEES)

<75,000 22%

75,000- less 12% than 100,000

100,000- less 33% than 199,999

199,999+ 33%

DEMOGrAphIC prOfIlE Of ThE EMplOyEE SAMplE

A TOTAl Of 1,039 INTErVIEwS wErE CONDUCTED wITh fUll-TIME EMplOyEES IN COMpANIES wITh 100+ EMplOyEES. 508 wOrKED fOr COMpANIES ThAT OffEr bENEfITS; 531 fOr COMpANIES NOT OffErING bENEfITS.

DEMOGrAphIC prOfIlE Of ThE EMplOyEr SAMplE

INTErVIEwS wErE CONDUCTED wITh 523 EMplOyErS (268 OffErING bENEfITS AND 255 NOT OffErING ThEM). ElIGIblE rESpONDENTS wErE ThOSE DEAlING wITh EMplOyEE bENEfITS Or EMplOyEE pOlICIES IN COMpANIES wITh 100+ EMplOyEES.

INDUSTry

Heavy Industry 35%


sales/Trade 29%


COMpANy SIZE

50-99 employees 53%

100-999 38%

1,000+ 8%

GEOGrAphy

Mexico City 56%

Guadalajara 24%

Monterrey 20%



India

4� Sectionvi:MethodoloGy

4�

GENDEr

Male 62%

Female 38%

AGE

30 or under 36%

31 to 40 24%

41 to 50 21%

51+ 18%

ChIlDrEN

yes 47%

No 53%

MArITAl STATUS

Married 55%

single, never 37% married

Widowed 4%

separated 4%

Divorced 1%


A TOTAl Of 447 INTErVIEwS wErE CONDUCTED wITh fUll-TIME EMplOyEES IN COMpANIES wITh 50+ EMplOyEES. 231 wOrKED fOr COMpANIES ThAT OffEr bENEfITS; 216 fOr COMpANIES NOT OffErING bENEfITS.

Mexico continued

INDUSTry


Heavy Industry 24%

sales/Trade 20%


COMpANy SIZE

2-9 employees 41%

10-99 30%

100-999 18%

1,000+ 11%

GEOGrAphy

Victoria 31%

New south Wales 27%

Queensland 18%

Other 23%

GENDEr

Male 65%

Female 35%

AGE

30 or under 30%

31 to 40 29%

41 to 50 23%

51+ 18%

ChIlDrEN

yes 31%

No 69%

MArITAl STATUS

Married 48%

Domestic partnership 22%

single, never married 19%

Divorced 7%

separated 3%

Widowed 1%

ANNUAl hOUSEhOlD INCOME (AUSTrAlIAN $)

Under $50,000 23%

$50,000-$100,000 53%

More than $100,000 23%


A TOTAl Of 500 INTErVIEwS wErE CONDUCTED wITh fUll-TIME EMplOyEES IN COMpANIES wITh 2+ EMplOyEES.


INTErVIEwS wErE CONDUCTED wITh 250 EMplOyErS. ElIGIblE rESpONDENTS wErE ThOSE DEAlING wITh EMplOyEE bENEfITS Or EMplOyEE pOlICIES IN COMpANIES wITh 2+ EMplOyEES.

Australia

INDUSTry


Heavy Industry 28%

sales/Trade 13%


COMpANy SIZE

10-99 50%

100-999 35%

1,000+ 14%

GEOGrAphy

south 50%

North 27%

Midlands 23%

GENDEr

Male 64%

Female 36%

AGE

30 or under 10%

31 to 40 27%

41 to 50 35%

51+ 28%

MArITAl STATUS

Married 54%

single, never married 24%

Domestic partnership 10%

Divorced 6%

separated 3%

Widowed 2%

ANNUAl hOUSEhOlD INCOME

£25,000 or less 28%

£25,001-£50,000 44%

£50,001+ 28%


A TOTAl Of 471 INTErVIEwS wErE CONDUCTED wITh fUll-TIME EMplOyEES IN COMpANIES wITh 10+ EMplOyEES. 303 wOrKED fOr COMpANIES ThAT OffEr bENEfITS; 168 fOr COMpANIES ThAT DID NOT.



United Kingdom

�0 Sectionvi:MethodoloGy

��

About MetLifeMetLife, a subsidiary of MetLife, Inc. (NYSE: MET), is a leading provider of insurance and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its domestic and international subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world. MetLife is the largest life insurer in the United States (based on life insurance in force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement & savings products and services to corporations and other institutions.

For additional information, please visit us online:

• India www.metlife.co.in• Mexico www.metlife.com.mx• Australia www.metlife.com.au• United Kingdom www.metlife.co.uk• United States www.whymetlife.com/international1

1 APRA Insight, Issue Two 2007, Special Edition, “A recent history of superannuation in Australia,” www.apra.gov.au/Insight/upload/Historyofsuperannuation.pdf

2 Ashling O’Connor,”Indian wage spiral forces TCS to outsource in Mexico,” Times of London, 7 June 2007, business.timesonline.co.uk/tol/business/industry_sectors/support_services/article1896086.ece

3 World Bank, World Development Indicators Database, July 1, 20074 World Bank, World Development Indicators Database, July 1, 20075 World Bank, World Development Indicators Database, April 20076 World Bank, World Development Indicators Database, July 1, 20077 World Bank, World Development Indicators Database, April 20078 United Nations, Population Division of the Department of

Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2006 Revision and World Urbanization Prospects: The 2005 Revision, http://esa.un.org/unpp, Wednesday, July 25, 2007

9 United Nations, Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2006 Revision and World Urbanization Prospects: The 2005 Revision, http://esa.un.org/unpp, Tuesday, July 24, 2007

10 World Bank, World Development Indicators Database, April 200711 Social Security Online, http://www.ssa.gov/policy/docs/progdesc/

ssptw/20042005/asia/india.html, interview with MetLife representative in India

12 Finance & Investment Guide, www.iloveindia.com/finance/postoffice/publicprovidentfund, interview with MetLife representative in India

13 Axco, Insurance Market Information: Life & Benefits Report – India, 2005

14 Axco, Insurance Market Information: Life & Benefits Report – India, 2005, interview with MetLife representative in India

15 United Nations Development Programme, Human Development Report 2006, “Beyond scarcity: Power, poverty and the global water crisis,” hdr.undp.org/hdr2006/statistics/countries/data_sheets/cty_ds_IND.html

16 United Nations Development Programme, Human Development Report 2006, “Beyond scarcity: Power, poverty and the global water crisis,” hdr.undp.org/hdr2006/statistics/countries/data_sheets/cty_ds_IND.html

17 GfK Roper Reports Worldwide, “A Closer Look at Consumer Trends in Selected Countries,” p. 44

18 International Labour Office, “Women and Men in the Informal Economy: A Statistical Picture,” 2002. The “informal” economy comprises employment from both selfemployment in small and/or unregistered enterprises and wage employment in jobs without secure contracts, worker benefits, or social protection.

19 Manpower. Inc, Talent Shortage Survey: 2007 Global Results, p. 120 Axco, Insurance Market Information: Life & Benefits Report

– India, 200521 World Bank, World Development Indicators Database, July 1, 200722 World Bank, World Development Indicators Database, July 1, 200723 World Bank, World Development Indicators Database, April 200724 World Bank, World Development Indicators Database, April 200725 United Nations, Population Division of the Department of

Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2006 Revision and World Urbanization Prospects: The 2005 Revision, http://esa.un.org/unpp, July 25, 2007

26 United Nations, Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2006 Revision and World Urbanization Prospects: The 2005 Revision, http://esa.un.org/unpp, July 24, 2007

27 World Bank, World Development Indicators Database, April 200728 World Bank/International Monetary Fund, “Financial Sector

Assessment Program Update: Mexico, Technical Note on Industrial Organization and Competition: Pension System in Mexico,” November 2006

29 The Economist, ”An Early Harvest for Calderon,” April 7, 2007, www.economist.com/world/la/displaystory.cfm?story_id=8966235; Adriana Arai and Patrick Harrington, Bloomberg.com, “Calderon No Fox in Mexican Pension Crisis, Bid to Raise Taxes,” June 25, 2007 www.bloomberg.com/apps/news?pid=20601103&sid=aWGLJqAOJgoc&refer=us

30 Axco, Insurance Market Information: Life & Benefits Report, Mexico, 2006

31 Social Security Online, http://www.ssa.gov/policy/docs/progdesc/intl_update/200705/index.html

32 World Bank, Regional Distribution of MiddleIncome Countries and 2004 GNI per Capita, 2004

33 World Bank, Mexico Country Brief, September 200734 Talent Shortage Survey: 2007 Global Results, Manpower. Inc, p. 135 GfK Roper Reports Worldwide, “A Closer Look at Consumer

Trends in Selected Countries,” p. 3236 GfK Roper Reports Worldwide, “A Closer Look at Consumer

Trends in Selected Countries,” p. 3437 World Bank, World Development Indicators Database, July 1, 200738 World Bank, World Development Indicators Database, July 1, 200739 World Bank, World Development Indicators Database, April 200740 World Bank, World Development Indicators Database, April 200741 United Nations, Population Division of the Department of



43 World Bank, World Development Indicators Database, April 200744 Australian Securities & Investments Commission Financial Tips and

Safety Checks, www.fido.gov.au45 Australian Securities & Investments Commission Financial Tips and

Safety Checks, www.fido.gov.au46 Australian Securities & Investments Commission Financial Tips

and Safety Checks, www.fido.gov.au, interview with MetLife representative in Australia.

47 Medicare Australia, www.medicareaustralia.gov.au, September 2007

48 Interview with ABC Online, http://www.abc.net.au/cgibin/common/printfriendly.pl?http://www.abc.net.au/pm/content/2007/s1887820.htm, April 2, 2007

49 Watson Wyatt, Intergenerational Report 2007, April 200750 World Bank,World Development Indicators Database, April 200751 “Debt will keep the boomers in jobs,” News.com.au, University

of Tasmania survey of 2500 boomers, July 12, 2007 http://www.news.com.au/business/story/0,23636,2206060314302,00.html#

52 GfK Roper Reports Worldwide, “A Closer Look at Consumer Trends in Selected Countries,” p. 64

53 Manpower. Inc, Talent Shortage Survey: 2007 Global Results, p. 254 GfK Roper Reports Worldwide, “A Closer Look at Consumer

Trends in Selected Countries,” p. 6755 “Debt will keep the boomers in jobs,” News.com.au, University

of Tasmania survey of 2500 boomers, 12 July 2007 http://www.news.com.au/business/story/0,23636,2206060314302,00.html#

56 2007 Intergenerational Report by the Treasurer of the Commonwealth of Australia, http://www.treasury.gov.au/igr/overview/html/overview_04.htm

57 World Bank, World Development Indicators Database, July 1, 200758 World Bank, World Development Indicators Database, July 1, 200759 World Bank, World Development Indicators Database, April 200760 World Bank, World Development Indicators Database, April 200761 United Nations, Population Division of the Department of



63 World Bank, World Development Indicators Database, April 200764 Axco, Insurance Market Information: Life & Benefits Report

– United Kingdom, 2006 65“The Pension Service AZ, State Pension,” www.thepensionservice.

gov.uk,“Tax Advantages of Personal Pensions,” www.direct.gov.uk66 Index of Economic Freedom 2007, United Kingdom,

www.heritage.org67 GenderStats Database of Gender Statistics: United Kingdom,

World Bank, www.genderstats.worldbank.org 68 GfK Roper Reports Worldwide, “A Closer Look at Consumer

Trends in Selected Countries,” p. 1669 Greenwich Associates, “For U.K. Pension Funds, A Season for

Strategic Thinking,” October 10, 2006

Endnotes

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1900030368

© 2007 MetLife, Inc. L0710119816 exp0711)MLIC-LD PEANUTS © United Feature Syndicate, Inc.

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