The Hartford’s Research Finds U.S. Workers Plan To Take Time Off From Work But Not Spend Big On Vacation

SIMSBURY, Conn.-(Business Wire)-September 2, 2009 - More than half of U.S. workers plan to use all of their paid time-off but are cutting back on vacation spending, according to research by The Hartford Financial Services Group, Inc. (NYSE: HIG). The Hartford’s Second Annual Time-off Survey also found that less than half of Americans are financially prepared to deal with a loss of income due to unplanned absences.

The national survey found that 56 percent of U.S. workers plan to use all of their time off from work, an increase of 8 percent over last year’s survey results. But, when asked what they were most likely to postpone given the state of the economy, two-thirds (67 percent) of survey participants said their vacation.

“Employees said they value the paid time-off that they receive from their employers, but they continue to be worried about their income and expenses. And as a result, they plan to cut back on vacation spending. This could be the year of the so-called staycation,” said Marjorie Savage, absence management director in The Hartford’s Group Benefits Division. “We encourage workers to take steps to protect their physical and financial health, such as taking time to relax, as well as protecting their income. Income protection can provide peace of mind that’s even more important during these stressful economic times.”

Survey respondents said what stresses them out the most are personal financial concerns (55 percent), followed by the U.S. economy (43 percent) and the fear of losing their job (27 percent). Workers’ top concern remained the same from last year’s survey. However, the economy moved from fourth place last year to the second spot in The Hartford’s 2009 Time-off Survey. Fear of job loss moved up to No. 3 with the largest increase (16 percent) over the 2008 results. Work issues dropped 12 percent, moving from third place to fourth place in the list of worries.

“We’re seeing work issues take a backseat to people focused on keeping a steady income,” Savage said. “And our attention has broadened from gasoline prices – the No. 2 stressor last summer – to our country’s economy overall.”

Generational Gaps

When asked how the economy has affected their job concerns, one in three workers (36 percent) said they are worried about layoffs, a 14 percent increase over last year’s survey. While every age group had increased concerns about their job, Gen Y (ages 18-29) appears to be worried the most. Fear of losing one’s job registered across all generations and genders, but Gen X (ages 30-44) and Gen Y had the biggest increases in 2009 results.

“Gen Y is also the only generation that said they plan to take less time off from work this year, while both Gen X and Boomers said they will take more,” said Savage. “This is the first time that Generation Y has experienced these types of economic and career issues. They are concerned about their job security and are addressing their layoff concerns by staying in the workplace more this year.”

In another generational difference, Gen X employees were more likely to delay dentist and doctor’s visits than other generations. This finding is worrisome, Savage said.

“We hope all employees will make the short-term investment in taking time for routine check-ups and testing. They can have a long-term impact if it helps prevent or detect a disabling illness that leads to a long unplanned absence,” she added, noting that behavioral health illnesses are a leading cause of long-term disability claims.

Unplanned Absences

In The Hartford’s Second Annual Time-off Survey, employees were asked about the time off from work that they have scheduled, as well as unplanned absences due to a disabling illness or injury. Without disability insurance, those unplanned absences can result in the loss of income.

A vast majority of Americans surveyed by The Hartford (97 percent) said they would have to change their lifestyle to meet expenses if they lost part of their family’s income for three to six months, but only 41 percent of survey participants reported having short-term disability insurance and only 36 percent of respondents said they have long-term disability insurance.

“Our survey found that women, particularly single moms, would be hardest hit if they didn’t get a paycheck for three to six months. Women also reported worrying more about finances,” Savage said. “We hope women, especially mothers, will take the necessary steps to alleviate that stress, such as protecting their paycheck.”

The survey, conducted by Opinauri in April 2009, was conducted online and polled 1,019 U.S. adults age 18-64. The survey has a margin of error of 3.5 percent. The generational breakdown of survey participants was 283 Gen Y workers, 290 Gen X, and 446 Boomers (ages 45-65).

Offering best-in-class absence management programs, The Hartford helps employers of all sizes manage the full spectrum of absences from personal leaves to federal, state and company-sponsored leaves.

About The Hartford

Celebrating nearly 200 years, The Hartford (NYSE: HIG) is an insurance-based financial services company that serves households, businesses and employees by helping to protect their assets and income from risks, and by managing wealth and retirement needs. A Fortune 500 company, The Hartford is recognized widely for its service expertise and as one of the world’s most ethical companies. More information on the company and its financial performance is available at www.thehartford.com.

HIG-L

Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2008 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.

1. LIMRA International (full year 2008).

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