Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD

Overview MexicoIndia Australia U.K.Study

MethodologyOverview

Study of International Employee Benefits Trends

Australia

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD

Australia – Profile

India

U.K.

Study

Methodology

Overview

MARKET PROFILE

16th largest global economy37

GDP of $681 billion38

Annual national income per capita: $35,99039

Developed economy, capitalist system

Dominated by services sector (70% of GDP)40

Working age population (ages 15-64) expected to grow from 13.7 million in 2005 to 15.5 million in 203041

Median age 36.7 years42

Life expectancy at birth: 80.6 years43

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD

Australia – Profile

BENEFITS AT A GLANCE

Superannuation is a government-regulated, mandatory retirement savings program for all Australian workers; 9% of employee salary is contributed annually by employers; additional contributions are voluntary.44

All superannuation funds have an investment component; many also have, on either a voluntary or mandatory basis, an insurance component: term life, disability and income protection.45

Employees may purchase additional insurance benefits if offered, and costs are deducted from their investment account.46

Government covers all Australians, but private health insurance is common.47

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD

Australia – Employer Perspective

In 2007, 61% of Australian employers surveyed experienced difficulty in finding the right people to fill jobs, up from 32% in 2006 and significantly above the global average of 41%53

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

RETAINING EMPLOYEES

AUSTRALIA: MOST IMPORTANT BENEFITS OBJECTIVES OF ALL EMPLOYERS

INCREASING EMPLOYEE PRODUCTIVITY

INCREASING EMPLOYEE JOB SATISFACTION

ADDRESSING DIVERSE NEEDS OF EMPLOYEES

HELPING EMPLOYEES MAKE BETTER BENEFITS DECISIONS

ATTRACTING EMPLOYEES

HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS

REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS

89%

87%

82%

71%

68%

64%

66%

65%

Percentages have been rounded to nearest whole number.

Australian employers are feeling pressure to attract and retain talented workers.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD

Australia – Employee Perspective

Percentages have been rounded to nearest whole number.

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

OUTLIVING RETIREMENT MONEY

AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT RETIREMENT

BEING ABLE TO AFFORD HEALTH CARE IN RETIREMENT YEARS

HAVING TO WORK FULL-TIME OR PART-TIME TO LIVE COMFORTABLY

IN RETIREMENT YEARS

PROVIDING FOR YOUR SPOUSE/PARTNER’S LONG-

TERM CARE NEEDS

PROVIDING FOR YOUR OWN LONG-TERM CARE NEEDS

49%

44%

43%

39%

38%

HAVING ENOUGH MONEY TO TAKE CARE OF ELDERLY

PARENTS OR IN-LAWS

29%

43% understand retirement needs

42% planned for retirement

42% determined life insurance needs

35% determined income protection needs

41% of Australian employees surveyed hope to retire in their 50s – 45% in their 60s, given their ambitions plans for retirement and long life expectancy, most Australians are worried about having enough money to afford it.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY 10166 L0710119824(exp0711)MLIC-LD

Australia - Conclusions

Study

Methodology

Benefits Strategies for Tomorrow, Today

Australia’s superannuation funds have succeeded in providing workers with fundamental coverage for retirement and family protection in case of disablement, but this success appears to have bred a degree of complacency among workers when it comes to savings and insurance. However, the need for additional financial advice and education about their value opens a door for growth in employer-provided benefits. As employees become aware that economic and demographic realities could threaten their visions of financial security and retirement lifestyle, they will increasing look to augment their current superannuation coverage. This will provide an opportunity for employers looking to improve employee retention rates, as well as for super funds looking for ways to grow their asset base: In creating benefits plans, employers should first focus on educating employees about

financial risks and appropriate coverage. Financial planning services will likely prove appealing to the large share of Australian

employees that are worried about paying for retirement but have done little to prepare. Employers may find good results in constructing benefits packages that provide a high

degree of personalization, with offerings that span insurance, investments and work/life options.