Workers Satisfied With Benefits, But Worried About Finances

Workers at small to mid-sized American companies are, on average, satisfied with their employer-sponsored benefits, but are worried about their current and future financial security, a survey by Harris Interactive for Principal Financial Group showed. The results also indicated that many people working for companies with 10–1,000 employees believe their workload is increasing, even as the cost of living rises.

The survey, taken twice annually, found that just 26% of the 1,227 workers polled were extremely happy about their current financial well-being, compared to 34% in the first quarter of 2004. Respondents were largely pessimistic about their future prospects, with 78% saying they were very concerned about their long-term financial future, compared to 76% in Q1 2004.

When asked what issues concerned them most in the election season, 81% of respondents cited the economy and jobs, followed by health care (71%), homeland security (60%), and financial well-being (58%).

Nearly a third (30%) of the employees surveyed said they are working harder this year than they were in 2003. Some 30% said they are working a longer work week compared to the same time last year, and 16% said they expect to lose vacation time because they cannot afford to take the time off.

At the same time, virtually all of the workers surveyed said their expenditures on daily consumer goods had risen over the past year. Virtually all respondents (97%) said they are spending more on basic items, such as gasoline and groceries, with more than two-thirds reporting that their spending had risen more than $25 a week.

The majority of respondents also admitted they had so far failed to plan adequately for retirement. More than one-quarter (27%) of those surveyed said they had not planned their retirement savings, and 71% said they do not have a plan for transitioning their retirement savings into a steady stream of income. Overall, 53% of respondents said they expect their standard of living to decline in retirement. Those aged 55 and older were the most pessimistic, with 66% saying they expect their standard of living to fall when they stop work, which most expect will be at age 67.

Despite these concerns about retirement, 53% of respondents said they are satisfied with their employers' defined contribution plans, up from 43% in the first quarter of 2004. The survey also showed growing levels of satisfaction with defined benefit plans, as well as employer-provided life insurance, disability insurance, and health insurance. The benefits workers said they valued the most were health care, defined contribution plans, and defined benefit plans. Almost two out of three employees (64%) surveyed agreed that good employee benefits keep them working for their current company, and encourage them to work harder and perform better.