Survey: Value of employee benefits falls

Mar 13, 2009 @ 1:53 pm

By Sue Asci

Most employees believe that the value of the benefits they receive has fallen, according to a study from Fidelity Investments released today.

In the survey — of 676 people who worked at firms with at least 100 employees — 61% said they were paying more money for their benefits but that the coverage had not improved since 2007.

The study was conducted from Jan. 7-13 by Synovate USA of New York on behalf of Boston-based Fidelity’s consulting services unit, which advises on retirement and health care plans.

Fully 72% of those surveyed believed that the benefits they received were better than or as good as those that other companies offered their employees, the study found.

But in looking ahead, 48% said they did not believe that their benefits would be provided by their employer in 10 years. In fact, 30% thought they would have to obtain their own benefits by 2019, while 18% said they thought the government would provide benefits.

By contrast, 28% said they thought their employers would provide benefits in the future, although 24% were unsure.

Most employers pay between $5,000 and $15,000 per employee annually for health benefits, but many employees are not aware of the cost, Fidelity reported.

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