Many people are not saving enough for retirement and with over 40 million people in work across the UK, the workplace is a good place to start engaging people with their finances.
A wide range of organisations are already involved in helping people to manage their money better: government bodies, commercial organisations, charitable foundations, and the voluntary sector. However, despite all the available information and advice, millions of people in the UK are failing to manage their money and make provision for the future.
Research published by the Money Advice Service in October 2015 found that around four out of 10 adults are not in control of their finances, one in five cannot read a bank statement, and four in 10 adults have less than £500 in savings. Ensuring that people have good money management skills is vital when it comes to helping them to become financially resilient and employers have a role to play in this.
Employers can help by giving people access to information and tools either by signposting to relevant websites or by integrating information into their intranets. As employers provide a pension scheme, it is their duty to provide information about that scheme for all their employees. Those nearing retirement may need even more support because they are embarking on life-changing financial decisions. With this in mind, employers could take advantage of the £150 income tax and national insurance exemption for employer-arranged advice on pensions to offer staff a bespoke recommendation from a regulated financial adviser.
Jackie Spencer is pension and retirement expert at the Money Advice Service