Brazil Employee Benefit Trends Study 2018

Chapter 2
Financial insecurity hurts the workplace


Since we last conducted our study in Brazil, we have seen how employees’ financial concerns are having an increasing impact in the workplace. 37% of employees now agree they are spending more time thinking about personal finances at work than they should. No wonder 82% of employers in Brazil now tell us that providing financial planning services is a very important goal for their benefits program.

Employers can create a more financially confident workplace by building employees’ sense of security beyond the paycheck. Positioning existing benefits as a means of offsetting employees’ financial worries around healthcare and retirement could have the added result of productivity gains for employers.

Many employees don’t feel in control

A majority of employees, especially in smaller companies, feel less in control of finances; and only a few are free of the financial stress they might face at a time of illness.

Employees are explicit: they want help with finances

Employers have an opportunity to try new approaches to financial wellness. These include basic tools for budgeting and financial planning, online tools for managing savings and learning about their options, employee assistance plans, and more sophisticated savings benefits, including those for retirement.

The full range of financial wellness benefits will differ hugely between young parents, for example, and those nearing retirement. Communicating and explaining existing benefits, particularly enhancements to medical and life cover, as a means of addressing financial worry around healthcare and retirement can also promote a sense of greater financial security.

Employees want more help with their financial security

Employees want your help — especially with retirement

Pensions remain relatively generous in Brazil and account for about a third of all government spending. Our study suggests that employees in Brazil are increasingly concerned about retirement and its financing, while employers seem much less prepared as compared to other markets, like Mexico and Chile.

Only 15% of companies in Brazil offer employees a savings scheme (it’s 85% in Mexico and 56% in Chile) and 24% have a pension plan (Mexico 78%; Chile 64%) – one of the lowest levels we’ve seen globally in all the EBTS conducted over the years.

Many employees remain far behind their saving goals

Only 36% of employees remain confident about their retirement saving plans. And this number falls significantly among employees in smaller companies (25% in small companies vs. 44% in large companies).

Looking for more global insights? Go to:benefittrends.metlife.com

Small Company

I feel in control of my finances
I am confident that my savings will tide me over in case of illness or disability
Medium Company

I feel in control of my finances
I am confident that my savings will tide me over in case of illness or disability
Large Company

I feel in control of my finances
I am confident that my savings will tide me over in case of illness or disability
Small Company

I am interested in my employer providing me with tools to help me make decisions about my financial needs
Over the next five years, I am worried about affording the benefits package that is right for me and my family
Medium Company

I am interested in my employer providing me with tools to help me make decisions about my financial needs
Over the next five years, I am worried about affording the benefits package that is right for me and my family
Large Company

I am interested in my employer providing me with tools to help me make decisions about my financial needs
Over the next five years, I am worried about affording the benefits package that is right for me and my family

Looking for more global insights? Go to:benefittrends.metlife.com

Feel a responsibility to help employees have enough money for retirement

Percentage of employers agreeing:

28%
Offer employees a savings scheme

Percentage of employers agreeing:

15%
Have a pension plan for employees

Percentage of employers agreeing:

24%
I have already achieved my saving goals

18-30 years old
8%
31-50 years old
6%
50+ years old
5%
I am on track for my saving goals

18-30 years old
23%
31-50 years old
20%
50+ years old
33%