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Half of the Uk Workforce want their employers to help them manage their money

HALF OF UK WORKFORCE WANT THEIR EMPLOYERS TO HELP THEM MANAGE THEIR MONEY

- Foster Denovo’s research highlights employee demand for

financial education is not being met

- Vast majority of employees have no idea how to pay for their future

Half (50 per cent) of employers said they had been asked by their employees for workplace financial education to help them manage their money, according to a new survey.

However, the research found their demands are not being met, as two thirds (67 per cent) of employees in the UK claim they do not receive any financial education in the workplace.

A higher proportion of older people, in the 55 plus age bracket, (77 per cent) claimed they had not received any form of financial education at work.

The research[1] was carried out on behalf of IFA of the Year[2], Foster Denovo and its employee benefits division, Secondsight.

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.”

The need for employees to receive financial education would seem to be acute, as the research found most do not have a plan for the future or receive any professional help.

Less than 20 per cent of employees have a solid financial plan in place and only just over a third (38 per cent) have a vague idea about how to manage their money.

Less than a quarter of employees (22 per cent) have a financial adviser, and 6 per cent of people are relying on a friend for financial advice.

Meanwhile, most employees also have no idea how much their pension is worth, with only 11 per cent knowing how much they will retire on.

“Around 20 or 30 years ago people were encouraged to be sensible with their money and put some aside. That no longer happens and not enough of us give sufficient thought as to how we will maintain a lifestyle in the future. The trends are concerning,” said Laverty.

When employers were quizzed, more than half (52 per cent) of companies admitted they were not providing financial education to their employees. Just 38 per cent of companies said the service was on offer to their staff.

Nearly three quarters (73 per cent) of employees said financial education being offered made them feel more positive about their employer, with 23 per cent stating it made them more loyal. This rose to 43 per cent for the 16-24 year age bracket. These figures were backed by 51 per cent of employers who said that the reason for offering it was to improve staff engagement.

When it came to asking who should be responsible for providing financial education, nearly two thirds (64 per cent) of employers think schools should be giving this to individuals, and 67 per cent of employees believe children would be better prepared for adult life if they were taught financial education at school.

“I agree that it is important to educate children about finances, but the learning process should continue into adult life,” said Laverty.

“If you want people to take action you need to engage them emotionally. A child is unlikely to think about the need to provide for their future family because it is a distant concept for many of them.”

The survey provides the backdrop to the launch of the Secondsight Financial Education Programme (FEP). Working with its corporate clients, Secondsight hosts introductory high-level financial awareness programmes for company employees.

Darren Laverty: “The aim is to raise employees’ financial awareness and provide a new perspective on their own financial situation. Organisations across the UK need to place real emphasis on the need for financial education in the workplace. Providing it can be achieved at a relatively small cost and should be seen as an investment, because the benefits significantly outweigh the costs.”

Secondsight has produced a white paper providing a comprehensive overview of the survey findings. To receive a copy of the free paper, please email: kim.crabbe@fosterdenovo.com. Or for further details of the Secondsight HR Masterclass on ‘Financial Education in the Workplace’, taking place on 8th October, please visit www.second-sight.com/events.

For more information on Foster Denovo visit www.fosterdenovo.com

-Ends-

About Foster Denovo:

Foster Denovo Limited is a national firm of financial advisers with eight offices across the UK. Its 85+ Partners provide financial advice to individuals and families, businesses and charities.

Secondsight, the company’s dedicated multi-award winning employee benefits division, provides pension and employee benefits advice and guidance to businesses and their employees. The company also operates a dedicated charity division, Foster Denovo Charity Solutions, which provides financial and employee benefits advice to charitable organisations and their staff.

Advice for private clients covers the full range of advisory areas, including financial planning, retirement solutions, estate planning and mortgages and protection.

Foster Denovo was originally established in 2005 and completed its buyout from the Tenet Group Limited in 2007.

Foster Denovo Limited is part of the Foster Denovo Group.

Secondsight is a trading name of Foster Denovo Limited, which is authorised and regulated by the Financial Conduct Authority.

Katrina Suppiah/Lisa Lewis, Publicité

Tel: 020 8543 6582/07809 028711

Email: k.suppiah@publicite.co.uk/l.lewis@publicite.co.uk

[1] September 2014 - Secondsight (part of IFA of the Year Foster Denovo), commissioned Censuswide to conduct two surveys. The first survey went to 250 HR employees in companies with 100+ employees, the second to 1013 full-time employees.

[2] Winner of Money Marketing’s IFA of the Year 2013.

This was posted in Bdaily's Members' News section by Matthew Mitten, Director of Enrolsme .