One in five employers to introduce financial education – Close Brothers

One in five employers aims to launch financial education initiatives for employees in the next 12 months, according to research from Close Brothers in partnership with the Pension and Lifetime Savings Association (PLSA). The survey of 1,000 employers and 2,009 employees finds that 60% of employers agree that some staff do not have sufficient savings, including pensions.

Of those already offering financial education, more than half do so via group face-to-face sessions, with 21% offering it over the telephone. However, only 46% of those providing financial education tailor it by either an employee’s career stage or age.

Jeanette Makings, Head of Financial Education at Close Brothers, said:

'Employers have a key role to play in helping their workforce to become more confident when it comes to meeting the lifetime savings challenge. Those that have embraced it are already seeing a real impact. Of those employees that have received financial education, over a third said that it had been useful in guiding their immediate, medium, and long-term saving decisions. This means a happier, more secure and more productive workforce. It’s a win-win for both employers and employees.
But crucial to the effectiveness of a financial education programme is how and to whom it is delivered. While employers may find online provisions easier and cheaper to implement, its lack of effectiveness means that both the company and employees are being short-changed. For financial wellbeing to improve, employees must use the programme and be confident in applying that knowledge to make a positive change to their finances. Online is not delivering these results and so is a false economy. Employers need to utilise the impact of face to face delivery and provide a programme that is tailored to its people in terms of need and interest as well as career stage and age. For employers to add real value, they must engage with employees on the topics that matter most to them throughout their lifetime savings journey, delivered in the most effective way.'
The data is based on surveys conducted amongst 1,000 employers with 200 or more employees and 2,009 employees from companies with 200 or more employees. The research was carried out on behalf of Close Brothers Asset Management by Opinium between the dates of 16 and 22 August 2017