Personal Finance

Workers warned on ditching benefits

Workers trying to increase their take-home pay by sacrificing company benefits may be putting themselves at financial risk in the long term, a new study has warned.

According to insurer Unum, more than one third (38%) of companies have seen an increase in employees opting out of schemes such as pensions, life insurance and income protection over the past two years.

A further 18% firms reported a reduction in staff contribution to pension schemes, the survey of 100 HR professionals found.

Marco Forato, Unum's chief marketing officer, said: "We're witnessing several concerning trends that would point to many employees currently taking a very short-term view of their financial situation.

"Although there's no denying that a lot of people are struggling financially as a result of the recession, workers should only opt out of long-term financial benefits as a last resort.

"It is vital that employees instead seek to protect themselves and their dependants by having robust financial cover in place."

Sam Jackson

Money Dashboard