There’s a need to provide more than just information to your employees - financial education is the crucial first step to helping them make informed choices about benefits and pensions, says WEALTH at work. Helen Swire and Sonia Rach report
“You have to engage with employees in the right context throughout their working lives, especially when they are approaching the pre-retirement phase. This is when they need very specific guidance and advice around the choices they need to make as individuals,” was Greg Thorley’s message to the Reward Live 2016 audience.
Thorley, head of business development at WEALTH at work, leading providers of financial education in the workplace, supported by guidance and advice, revealed some worrying statistics – saying that 76% of employers feel that their employees are not saving enough money, despite nearly two thirds (60%) providing financial education during the pension accumulation stage.
WEALTH at work’s research has revealed that nearly all (94%) employees in pension schemes are using the default investment option – indicating a lack of education about, and engagement with, the various options available.
Thorley highlighted the key importance of giving employees context around their savings and options, to engage them with the relevance of a pension to their life situation, regardless of age group.
With nearly a third (30%) of employees acknowledging they know little or nothing about finance and pensions, education, advice, and implementation are the three pillars that employees should act around when engaging staff, Thorley said.
“These pillars are absolutely crucial, in order to make sure employees understand benefits,” commented Thorley. “But, more importantly, to ensure that you’re providing them with what they deserve – and that they’re engaging with it.”
Jonathan Watts-Lay, Director, WEALTH at work comments, “It is positive that many employers are providing financial education during the various stages of retirement planning. However, I believe that there is scope for more employers to offer a tailored programme of financial education delivered in the workplace, supported by access to regulated advice, which I consider the best level of provision.”
WEALTH at work is blogging about the key areas of employer consideration when helping employees through retirement in Reward's financial education hub.
The hub examines the changes in pensions and looks at how you can help your employees with financial education across all their savings. CLICK HERE to access the hub
For further information about WEALTH at work, please CLICK HERE