Today’s report follows the Financial Advice Market Review (FAMR) recommendation to investigate how employers could better support staff to manage their personal finances.
The report published today finds that:
- There is strong evidence employers are concerned about the financial well-being of staff
- 70% of employers would be willing to help staff with the personal finances but want access to resources
- 58% of firms would be interested in a published guide to help them support staff with financial matters
- Employees are open to receiving financial help from their firm and would be more likely to use an adviser recommended by their company. One third said they would pay an adviser introduced by their employer.
The FAWG has built a pilot online portal designed to supply firms with the resources to support employees. It is expected the Money Advice Service (MAS) and ‘early adopter’ employers will refine and roll-out the support package for companies.
“The introduction of auto-enrolment means that all companies will be supporting staff with a workplace pension. A retirement fund should be seen as the foundation of investing for your future, and today’s report presents a blueprint for companies that want to help their staff go beyond and build on those foundations.
“Many people are concerned about money and this can contribute to difficulty in the workplace, according to the findings of the research. So there is a business case for employers to focus on helping staff enjoy financial stability and invest for the future.
“But resource pressures, and concerns about over-stepping the mark and drifting into personalised financial advice, mean some firms feel unable to help staff with their money. This report aims to address that, providing the tools and support that businesses need.
“We now need business to play its part by getting behind this project. It would be fantastic if some pioneering businesses were to become early adopters of the blueprint set-out today, and set an example to other employers across the country.”