Data & Research November 17, 2010

Retirees Have Grim Outlook for Offspring

The majority of American retirees see their children and grandchildren being unable to participate in the “American Dream” and afford retirement, according to a poll conducted by Protect Seniors.Org.
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The survey, conducted in conjunction with former Chairman of the Richmond Federal Reserve Bank and former White House ERISA adviser, Thomas Mackell Jr., found almost three quarters of poll participants said they expect their children and grandchildren to have worse career and lifestyle opportunities than they enjoyed (73.4%-children, 75.6%-grandchildren). Over 65% of respondents replied no when asked if they thought their children will be able to afford retirement, and over 70% doubt their grandchildren will be able to afford retirement.    

While the vast majority of the 2,021 retirees polled (84%) felt they were given the opportunity to achieve the American Dream, they forecast a grim outlook for their offspring.  Nearly nine in ten (89.2%) said they believe it will be more difficult for their children to live the American Dream and only 1.9% saw their grandchildren having an easier time living that dream.  

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More than half of respondents (52.3%) don’t believe their children will ever achieve the American Dream and 61.8% see a dark cloud over that dream for their grandchildren.  

The poll was conducted from October 5 – 27, 2010, and received 2,021 responses from retirees in 44 states, plus the District of Columbia. 
Products November 17, 2010

MetLife Offers Strategies for Executive Benefits

MetLife is offering a new resource that provides employers and brokers with practical strategies for developing more competitive benefits programs for highly compensated employees.
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Watch the Gap! Recalibrating Income Protection Benefits for Highly Compensated Employees outlines actions employers can take to maximize the value of their income protection programs.  

For example, group long-term disability plans typically cover 60% of an employee’s base salary before tax, but they often do not cover incentive compensation such as bonuses and commissions. They also typically have a maximum benefit cap. Similar limitations are found when it comes to life insurance, as the coverage needs of the highly compensated may often exceed group plan maximums. More than half of these higher wage earners say they are very concerned about the financial effects of a loss of income in the event of a disability and/or premature death. 

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To help close this gap in coverage, Cynthia Smith, vice president, Executive Benefits Sales, MetLife, said the resource suggests employers look at adding an individual disability income (IDI) policy to complement the group long-term disability benefit as well as consider implementing a group variable universal life (GVUL) program. The resource describes how.  

The resource is available at http://www.metlife.com/executivebenefits.

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