The journey starts with an employer’s realisation, mixed with a feeling of deep unease, that their employees are struggling to understand their finances: from making poor decisions over debt through to simply not knowing if they can afford to retire.
What was once a simple matter of reaching retirement age and receiving the promise of a steady income once they had finished work has become a complicated puzzle, where there are no set dates to work towards for employees or employers, and anxiety levels have increased because few people actually understand what income they will get.
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In years gone by the majority of companies offered pension schemes that were fully managed by Trustees. These days many people are members of different types of schemes that actually require decisions to be made and choices to be explained and understood.
There is uncertainty in all aspects of our lives and that was compounded further in 2020 by the effects of the worldwide Covid-19 pandemic. There is uncertainty too, when it comes to finances. The responsibility of managing money is huge but it has never been as much of a burden as it is right now.
When can I retire?Will I have enough money?Will my family be okay if I am too ill to work?
These questions, and many more, are difficult for individuals to address. Some people will stick their head in the sand and ignore them, while others may well turn to the only place they can – their employer!
The workplace is where people already have dealings with money through wages and pensions and there is a growing number of employers who feel that a lack of financial planning and assistance for their staff, particularly in the approach to retirement, is a real concern. Without that guidance and knowledge employers cannot put together any succession planning, and employees are left in the dark about whether they have enough money to do what they want in retirement, or have enough in their ‘pot’ to even consider finishing work.
The statistics back this up.
Neyber’s 2019/20 DNA of Financial Wellbeing surveyed over 11,000 employees, across all industries, and heard from more than 700 employers. The research revealed that financial worries are once again the top concern of UK employees, with three in five individuals feeling the strain. Their second biggest worry was their later life and retirement.
The survey also showed that one in three employees have felt stressed, one in three have felt anxious, one in four have lost sleep and one in five have felt depressed.
Within this environment of stress and confusion, affecting the sleep and the health of employees as well as the plans and the sense of responsibility that the employer has, the next step on that journey is to look for help.
Employers can help pave the way.
If the workforce were able to see and understand what their choices are, or potentially what difficult decisions they may have to make, this would give them the knowledge and freedom to take control of their lives and make good financial decisions.
What Lifetime offer an employer is the opportunity to take their employees on this journey – and help them discover how to live the life they want, now and in the future, and not be afraid of the financial decisions that affect their lives.
With the help of our animated financial guide Flo, and our dedicated, professional Coaches and Planners, we will put together a video of an employee’s bespoke plan, which will help them to understand where they are now, and how they can move forward without fearing the future, so they can achieve what they want from later life.
In Lifetime’s experience, various elements of a workforce have potentially differing planning needs. For example, younger people may be interested in mortgage or personal protection issues, along with regular saving. Older members of staff may have their attention pointed towards a happy retirement. Our tailor-made videos will satisfy differing planning requirements.
The plan will help alleviate an employee’s anxiety and stress, as they will be provided with the knowledge they need to make good financial decisions, rather than merely guessing about their futures.
Just reading this shows that you are concerned about your staff’s financial wellbeing, and are looking for truthful answers for your business and your team. If you would like help on your journey get in touch and we will walk with you every step of the way.