New research finds that Latino workers claim to be knowledgeable about their employer-provided benefits. Yet despite this claim, they are more likely to say that they find it difficult to select their benefits.
Sixty one percent of Latino employees said they know a lot about their employer-sponsored benefits, according to the 2015 MassMutual Employee Benefits Security Study. A sizeable majority (80 percent) indicated they know how much they spend monthly on their benefits, but only about half responded that they know how much life insurance coverage their family needs, if they are on track to retire comfortably and how much they should be spending on their benefits.
“There is a disconnect for Latino workers when it comes to truly understanding their employee benefits,” said Dr. Chris Mendoza, Latino Markets Director, MassMutual. “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”
Learning more about their finances is perceived by Latinos to be too complicated, confusing and time-intensive, MassMutual’s research found.
To help provide more educational resources, MassMutual launched MapMyBenefitsSM (available in English only), a free, online tool that enables employees to prioritize their benefits choices and make the most of each benefit dollar based on life stages, financial goals and personal finances. The holistic approach to financial planning at the workplace combines retirement readiness, healthcare coverage and preparation for life’s unforeseen events.
Nearly four out of five (76 percent) Latino employees said they do not currently use an online financial tool to manage their retirement, healthcare and other forms of insurance. However, 81 percent indicated they would likely use such a tool if it were available cost-free, especially if it were provided by a “trusted and respected financial services company.”
“This study finds that many Latino employees cite difficulty, time, and a lack of information about where to go and whom to trust as the reasons for not knowing more,” Mendoza said. “MassMutual is offering new tools and opportunities to help all Americans better understand their personal finances and benefits.”
The study focused on a sampling of employees and their employer-provided benefits. MassMutual commissioned the study by KRC Research as part of an initiative to understand how best to help educate workers about their employer-provided benefits and enable them to make better choices in selecting healthcare coverage, insurance protection, retirement savings and other benefits.