Death comes before retirement
Companies operating in Central and Eastern Europe are more likely to offer employees death and disability cover than medical and retirement benefits, says John Swabey, senior international consultant at Watson Wyatt in Brussels.
Generally, fewer than 20% of companies offer retirement benefits in the region, with Hungary, Russia, Slovenia and Bulgaria coming in lower at about 18%. Only 1% of companies in the Czech Republic and Lithuania offer any such provision.
However, 70% of companies in Russia offer medical benefits and in Poland the situation has changed dramatically in the past year, with around half of all companies providing medical cover compared to 10% in 1998.
Swabey comments: “Whilst companies in Central and Eastern Europe have not yet really embraced the need to offer retirement benefits, that is changing significantly. The increasing focus on retention coupled with reduced state provision makes retirement benefits a significant issue.”