financial guidance

No financial guidance for half employees

Foster Denovo’s employee benefits division, Secondsight, research highlights employee demand for financial education is not being met.

Leading benefits adviser launches its Financial Education Programme, and warns employers of the need to support staff, and remain competitive.

More than half (52 percent) of companies do not provide any financial education to their employees, according to a new HR survey. Meanwhile, two thirds (67 percent) of employees in the UK claim they don’t receive financial education from their employer. A higher proportion of older people, in the 55+ age bracket, (77 percent) claimed they had not received any form of financial education. However, half (50 percent) of HR professionals surveyed said their employees had requested access to financial education in the workplace.

The research was carried out on behalf of employee benefits adviser Secondsight, part of national financial advisers, Foster Denovo. The need for financial education would appear to be urgent as the vast majority of employees have no plan to provide for their future. Less than 20 percent have a solid financial plan in place and only 38 percent have a vague idea about how to manage their money. Most employees also have no idea how much their pension is worth, with only 11 percent knowing how much they will retire on. Less than a quarter of employees (22 percent) have a financial adviser, and 6 percent of people are relying on a friend for financial advice.

The survey also highlighted that nearly three quarters (73 percent) of employees said financial education being offered made them feel more positive about their employer, with 23 percent stating it made them more loyal. This rose to 43 percent for the 16-24 year age bracket. These figures were backed by 51 percent of employers who said that the reason for offering it was to improve engagement. Darren Laverty, director of sales and marketing at Foster Denovo, said: “Clearly, employee demand for financial education is not being met, and companies are failing to support their staff with sound financial and retirement planning.

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