Almost two thirds (63%) of employer respondents think that the impact of Brexit on the UK economy will drive demand for financial education in the workplace, according to research by Nudge.
Its Financial education yearbook 2016/17 report, which surveyed 302 employers, also found that 32% of respondents already offer financial education in the workplace, and 54% are in the process of, or are considering, introducing it.
The research also found:
- 82% of respondents would like to support the financial education of their staff by providing an online financial education platform, 67% want to do so through a telephone helpline such as an employee assistance programme (EAP), and 57% want to support their employees’ financial education through group presentations from a financial adviser.
- 66% of respondents provide their employees with financial education on savings and investing, 56% of respondents offer financial education on budgeting, 48% around relationships, such as bereavement and co-habiting, 46% on everyday finances, 44% on life after work, and 44% provide financial education related to children and family.
- 83% of respondents believe financial education should be personalised in line with an employee’s age, 78% think personalisation should focus on an employee’s financial goals, and 54% feel financial education should be personalised according to an employee’s benefit choices.
- 67% of respondents believe financial education should be personalised according to an employee’s attitude to risk, 65% according to salary, and 53% think it should be tailored in line with pension membership.
- 60% of respondents believe that employees who suffer from stress due to financial concerns will drive demand for financial education in 2017, 46% think eldercare costs will drive demand, and 63% cite the ability to cope with a change in personal circumstances as a driver for financial education.
Tim Perkins (pictured), director at Nudge, said: “It’s clear that we now have agreement that financial education is a lifelong priority that should start in school and continue through a person’s working life and beyond. Although it’s positive to see such widespread understanding of the business case for providing financial education, the gap between aspiration and support currently provided remains wide.
“In 2017, we can already foresee 36 different events that will impact on people’s financial education needs, as varied as the new sharing economy tax and the reduction in money purchase annual allowance. Employers need to ensure that they have the support they need to educate their people in line with the changes, or face the consequences in terms of the impact of poor financial wellbeing on their levels of employee engagement and productivity.”