Teaching people about their finances has come to prominence recently with high profile campaigns from experts including Martin Lewis of Money Saving Expert, a vocal supporter of introducing better guidance on finances to children and teenagers. The theory is that teaching children about concepts such as long-term saving, preparing for retirement and saving towards specific goals will pay dividends throughout their lives. This is a great start but financial education should not end in school.
With the prospect of ever more changes to the State pension, individuals must take more responsibility for their own financial well being. However, the financial world is complex and with changes such as auto enrolment, RDR and the abolition of the default retirement age, people need information and guidance to help them secure their finances now and for the future.
Financial education delivers the solution. It equips consumers with the means to make better financial decisions throughout their lives and when planning ahead for retirement. But what role can HR play in delivering this solution?
Research from Close has found that almost seven out of 10 (69%) employees relied on their employer for advice on how regulatory changes affect their income and their benefits. This suggests that people are used to trusting their employer, viewing them as a source of information.
Regulatory change and uncertainty is something that is a major concern for employers and employees alike, particularly with auto-enrolment due to begin impacting the way all workers save for a pension. In the past, the onus has been with the individual to plan for their own retirement but organisations are now being required to shoulder some of the burden.
Training is an integral part of developing employees so they reach the best of their potential and no doubt you already invest in this area. Expert financial education can be a further valuable addition and one that sets you apart as an employer, as it can be seen as a benefit that not all employers currently offer.
Financial education services work on a “one-size doesn’t fit all” basis and can be accessed by any size, type and shape of business and any number of individuals within a business. By bringing experts into the workplace to train staff on the benefits of financial education, employers can help to empower their employees.
The important thing is to ensure that best advice is being given by fully qualified and experienced financial experts. Financial education can be the difference that sets apart a company with a happy, more financially secure workforce that trusts its employers.
