{"id":2202,"date":"2020-12-18T09:50:07","date_gmt":"2020-12-18T01:50:07","guid":{"rendered":"https:\/\/www.pacificprime.co.uk\/blog\/?p=2202"},"modified":"2020-12-18T09:58:22","modified_gmt":"2020-12-18T01:58:22","slug":"the-employers-guide-to-financial-wellbeing-in-the-uk","status":"publish","type":"post","link":"https:\/\/www.pacificprime.co.uk\/blog\/the-employers-guide-to-financial-wellbeing-in-the-uk\/","title":{"rendered":"The employer\u2019s guide to financial wellbeing in the UK"},"content":{"rendered":"

When it comes to the UK\u2019s financial wellbeing, the numbers are indeed staggering<\/a>: more than half of working-age adults don\u2019t understand enough about pensions to make decisions about saving for retirement. But what does financial wellbeing entail? And why should employers care? Today\u2019s article by Pacific Prime UK<\/a> addresses these questions, as well as provides you with financial wellbeing benefits to implement.<\/p>\n

\n

\"Corporate<\/a><\/p><\/div>\n\n

A word about employee wellbeing initiatives<\/h2>\n

Before we delve into financial wellbeing, it\u2019s vital to be clear on employee wellbeing<\/a> (also known as employee wellness) initiatives in the workplace. This is a holistic approach that considers the full spectrum of physical, mental, and emotional health. As such, financial wellbeing is a subset of employee wellbeing.<\/p>\n

Defining financial wellbeing<\/h2>\n

Financial wellbeing is a state of mind that occurs when an individual feels secure in their finances and financial capability. It encompasses a range of factors including the ability to manage one\u2019s expenses, make smart investments and decisions, as well as set aside funds for a rainy day.<\/p>\n

State of financial wellbeing<\/h3>\n

As alluded to in the introduction, financial wellbeing in the UK is rather low. A 2018 survey of working-age adults conducted by the government-backed Money and Pensions Service revealed many insights<\/a>, including the following key points:<\/p>\n

Day-to-day<\/strong>: 21% rarely or never save, while 22% have less than \u00a3100 in savings and investments. What\u2019s more, 17% often use a credit card, overdraft, or borrow money to buy food or pay for bills.<\/p>\n

Confidence: <\/strong>47% don\u2019t feel confident making decisions about financial products and services. Moreover, only 27% of working-age adults are over-confident in their ability to use numbers in everyday life.<\/p>\n

Planning ahead: <\/strong>55% of working-age adults don\u2019t feel that they understand enough about pensions to make decisions about saving for retirement. Likewise, 43% of adults age 65+ don\u2019t know how they would manage financially if they had to go into long-term residential care.<\/p>\n

Importance of financial wellbeing<\/h2>\n

Individuals who experience financial wellbeing will be less stressed about money, which leads to them feeling happier and healthier. This reduces absenteeism and presenteeism in the workplace, as they take fewer sick-leaves and work more productively. To top it off, the overburdened NHS<\/a> and the economy will also benefit as a result.<\/p>\n

Strategy for financial wellbeing<\/h3>\n

Given the importance of financial wellbeing, the Money and Pensions Service launched a 10-year vision<\/a> in January 2020 to help individuals with their finances. The strategy consists of \u201cfive agendas for change\u201d:<\/p>\n