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Employee Benefits News

Latest News
05 Feb 2018

Financial wellness solutions are win-win, says Mercer

Employers can help ensure financial security for their workers by offering financial information and advice as part of an employee benefits package, according to HR consulting firm Mercer.

A recent survey by Mercer found that without better planning, many people will outlive their savings in retirement. In fact, just one in four (25%) UK employees said they are confident they will save enough for retirement.

Almost nine in ten (87%) feel personally responsible for their retirement income, yet many do not take the requisite actions. Factors including stress, affordability, access and confidence in investing, as well as age, gender and stage of life, affect people´s ability to save and invest.

And many people have not worked out how much they would need to save in order to maintain their current lifestyle in retirement. Almost half (45%) of UK employees surveyed said they have not made any financial calculations to understand their retirement needs.

Only 13% said they have consulted a financial advisor to calculate retirement savings, perhaps because only 49% indicated they trust financial advisors.

However, the research also showed that employees trust savings advice from their employer. More than eight in ten (82%) UK workers claimed they trust employers to give sound, independent advice on planning, saving and investing.

This shows that there are opportunities for employers to play a crucial role in addressing the current investment roadblocks for individuals, Mercer noted.

“Everyone has a role to play in closing the savings gap,” commented Eve Read, consulting leader for DC & Individual Wealth at Mercer. “The majority of our research participants trust their employer to provide sound independent advice and, although many companies may not want to offer advice, they can have a real impact on the financial security of their workforce through other initiatives. The employee benefits market is constantly evolving and offering benefits such as financial education or the short term use of pension contributions to meet other financial priorities are a good place to start.

“Evidence suggests that workers without financial concerns are more productive and those with employers who provide financial wellness solutions are more engaged in their work. It´s a win-win for both employers and employees!” Read added.

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