The desire to improve financial health is there but are employees being hampered by cost of living crisis?

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The desire to improve financial health is there but are employees being hampered by cost of living crisis?

Lifetime news

Posted on: 27/06/2022

Many people want to improve their financial health in 2022.

A survey, carried out on behalf of abrdn investment company and taking in 2,000 UK adults, revealed that more than half (55%) were determined to get to grips with money matters so they would be in a better position.

Yet those people – indeed, all of us – are being faced with real financial uncertainty, considering the country’s current turbulent economic situation.

UK inflation has risen to 9.1% according to the Office of National Statistics, the highest rate in 40 years. It has been fuelled by rampant rises in food and transport costs. Taking motor fuel as an example, there was a 32.8% jump in price over the past year – the biggest annual increase on record, which date back to 1989.

The Bank of England says it is battling to stem the inflation tide, and has raised interest rates to their highest level in 13 years. The BOE has warned that inflation is currently on track to reach 11% later this year, before beginning to drop.

And all this while wages within the UK workforce, for the majority of people, have not in any way matched such sudden rises.

Money is an important subject. It can play a key part in how you live your life, now and in the future.

Yet it can be such a big cause of stress for people, including employees.

The cost of living crisis – with energy and fuel bills soaring – has brought an added urgency to the need for better financial education, guidance, support and advice. There has never been a more important time to fully understand your financial situation, and what exactly your money can and can’t do for you.

Employers who offer financial insight, guidance and education, through online Q&A’s, workshops and webinars, can start to help their staff avoid any potentially harmful financial shocks.

Employers may already be offering such benefits as gym memberships, savings on shopping, or a cycle-to-work scheme. They are good benefits to have, of course, but here at Lifetime we believe that they need to go hand in hand with a benefit that includes financial insight, guidance and education, that will support employees through any troubling times they might have when it comes to money.

By showing employees how such a service can help them gain full control over their finances, while simplifying issues such as wills, pensions, savings, investments and mortgages, an employer will build trust.

There needs to be real focus – and action – on the financial happiness of a workforce.

Financial benefits make employees more committed and productive too!

According to Nudge’s Global financial wellbeing report, the opportunity for employers is clear; 56% of employees say financial benefits make them more connected to their employer.

Helping employees improve their financial health, through skills and knowledge to achieve their life goals at a time when they need it most, builds trust and understanding of their financial situation.

One of the top financial benefits received by those who said they are connected to their employer? Financial education.

It’s a no-brainer folks….


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