Understanding of Employer-Provided Benefits Elude Many Latino Workers
Although many Latino workers claim that they have an understanding of their employer-provided benefits, they're more likely to say it's difficult to select their benefits, according to research published by Massachusetts Mutual Life Insurance Company.
Approximately 61 percent of U.S. Latino employees said they know about employer-sponsored benefits and 80 percent indicated they know how much they spend monthly on their benefits, according to the 2015 MassMutual Employee Benefits Security Study. However, only half responded saying how much life insurance coverage their family needs, if they are on schedule to retire securely, or how much they ought to spend on their benefits.
"There is a disconnect for Latino workers when it comes to truly understanding their employee benefits," Dr. Chris Mendoza, Latino Markets Director, MassMutual, according to a press release. "This presents challenges when it comes to making the most of their employee benefits and attaining financial security for themselves and their families. Education about financial topics can help Hispanic families make better informed decisions."
The research was conducted by KRC Research from July 17-24. More than 1,500 U.S. residents were surveyed, and it included an oversampling of 501 Latinos. The research stated that learning more about finances has been perceived by Latinos as too complicated, time-intensive and confusing. To help educate the public, MassMutual launched a free, online too, MapMyBenefits, which would help employees to prioritize their benefit choices, and make the best choices based on life stages, personal finances and financial goals.
Considering healthcare coverage, retirement readiness and preparation for life's unforeseen events are important for financial planning. Approximately 76 percent of Latino employees said they don't use online financial tools to manage their healthcare, retirement and other forms of insurance. With that said, 81 percent of respondents indicated they would use a cost-free tool if there was one available, particularly if it was provided by a "trusted and respected financial services company."
Often, Latino employees cite difficulty, time, and a lack of information when addressing a great understanding of personal finances and benefits. The MassMutual research was conducted to gain an understanding of how to best help educate workers about employer provided benefits, enabling them to make beneficial choices when selecting insurance protection, healthcare coverage, retirement savings and other benefits.